Apple Pay

Apple Pay’s security is still untested

Apple’s new mobile payments system, Apple Pay, is being hailed as a game-changer — a new way to pay that will be quickly embraced by consumers and save retailers the headache and expense of break-ins into credit card-based systems. But will it? asks Retail Dive.

All mobile payment systems, including Apple Pay, Google Wallet, Softcard and CurrentC, a new non-NFC payment system developed by a consortium of retailers, tout the almost-magical ease of using their virtual wallets to make a purchase, but convenience is not consumers’ biggest worry. Security concerns about mobile payments are a major reason why they’ve been adopted so slowly.

Some experts say mobile payments are indeed more secure than old-fashioned credit cards: They use various combinations of encryption, one-time-use codes, and layers of authentication not possible when swiping a plastic card. With Apple Pay, financial information is not stored on the phone, so the security risk shifts to banks or card issuers and how they store the data.

But banks themselves are increasingly using the cloud to store data, and it’s unclear how well anyone in charge there understands what it may take to manage its security risks. So while experts say the security of mobile payments — including Apple Pay — has come along way, it remains untested.




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The Which Apps Do They Want Study analyzes survey data collected from 1,045 American consumers to learn how they use merchant apps to enhance in-store shopping experiences, and their interest in downloading more in the future. Our research covered consumers’ usage of in-app features like loyalty and rewards offerings and in-store navigation, helping to assess how merchants can design apps to distinguish themselves from competitors.

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