“We have a number of mobile payment initiatives and products available to us in the U.S. but we’re still dealing with an outdated magnetic stripe system that’s easy to hack for data,” Kevin C. Tofel writes for Gigaom. “That’s partly why this country accounts for a disproportionately high amount of overall credit card fraud: Although we process only 24 percent of global payment volume, we account for 47 percent of the overall global fraud according to Businessweek.”
“Market politics is one big challenge. For example, I had high hopes for Google Wallet and NFC payments a few years ago but they were soon dashed,” Tofel writes. “I do have some hope though: Apple is reportedly looking at expanding into mobile payments in a way that would eliminate the magnetic stripe approach. The company already has hundreds of millions of credit card account information. And with the new iPhone 5s, it has a strong user identification process in the Touch ID fingerprint sensor.”
Tofel writes, “If Apple does provide a solution for this issue, I’ll welcome it with open arms. Yes, it means providing trust in Apple for all of that credit card data but if you’re an iTunes user, don’t you already do that today?”
Read more in the full article here.
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