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Over Half of Mobile Payment Companies Have No Control Over Financial Data

Jp Buntinx · @http://twitter.com/jdebunt | Jan 27, 2016 | 03:34

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Even though plenty of consumers are looking forward to using new and innovative mobile payment solutions, there are still a lot of security issues that need to be addressed. A recent study conducted by Ponemon Institute shows how mobile transactions lack proper security measures to keep payment data safe. As a result, there is a huge lack of confidence by both consumers and businesses. Bitcoin, on the other hand, has no issues securing mobile payments and is available for consumers all over the world.

Also read: Belgian Government Aims To Prevent Bitcoin Money Laundering

Data Breaches Affect Mobile Payment Sector

Based on the information provided by the global study by Ponemon Institute, close to half of the people surveyed admitted their company suffered from a breach. As one would come to expect, hackers have been attempting to exploit various types of payment information in the hopes of finding the honeypot.

But what makes this report of particular worry is how most of the companies affected by these breaches have been targeted by hackers at least four times in the past two years. This is not a positive trend by any means, especially when considering how mobile payments are gaining more momentum all over the world.

If that wasn’t enough to make some people’s blood boil, over half of the companies surveyed admitted they have no idea where the payment data is stored in the first place. As is the case with any form of payment that relies on traditional finance, information goes through several “hands”, and it is hard to figure out who owns what part of the information at any given time.

With new mobile payment solutions on the horizon, these security issues will need to be addressed sooner or later. Preferably sooner, as consumers are becoming more wary of which companies they put their trust in, especially where financial details are concerned. If companies have no clue where the data ends up, or how it is being used by any of their partners, consumers are more likely to look for alternative solutions.

Mobile payments are an important aspect of everyday life for a lot of consumers. However, if their payment information would be leaked somehow, the mobile payment trend will start to drop off again, until proper security measures are put in place. Whether or not these up-and-coming solutions can provide that level of security, remains to be seen, though.

Bitcoin is Far More Secure And Available On Mobile

Unlike all of these new mobile payment solutions, Bitcoin has proven to be a far more secure solution for many years now. As the end user is put in full financial control at all times, and with there not being a link to bank accounts or credit cards, no sensitive information is passed along with every transaction.

Furthermore, Bitcoin is not subject to fraud or chargebacks, making it a preferably solution for businesses all over the world. With Bitcoin’s global appeal, it is the only form of mobile payment that offers security and convenience at the same time. As far as protecting financial data goes, there is no match for Bitcoin in the mobile world to this day.

What are your thoughts on the results of this study by Ponemon Institute/ What can companies to do secure mobile payments? Let us know in the comments below!

Source: Finextra

Images courtesy of Ponemon Institute, Shutterstock