Will Mobile Payments Soon Reign Supreme?
Monica Eaton, the COO of Chargebacks911®, was featured in Multichannel Merchant, discussing new mobile payment technology. There have been numerous discussions recently as to how safe new payment technologies are and how easy it is to use them. If consumers don’t trust new technologies, they will be more hesitant to adopt them.
“Eaton is unsurprised that mobile payment technology adoption is slow. While developments in mobile payment technology have the potential to make everyday life and payments easier, many consumers perceive the technology as insecure.”
If there’s one company that knows what consumers want and exactly how to meet their needs, it’s Apple. However, even Apple is struggling with the slow uptake of Apple Pay, as Eaton stresses,
“If Apple can’t do it, who can?”
Eaton moved on to explain how there are still risks associated with the new technology. One of these being fraudulent transactions. For example, with Apple Pay, a fraudster can still use stolen credit card information and use it to pay via their mobile device.
“Ironically, per Eaton, Apple is most vulnerable to themselves. She points out that with Apple Pay, a fraudster could steal a credit card, enter it into a phone, then use the phone to purchase Apple products–without any identification necessary. Then, when the cardholder goes to dispute the fraudulent activity, Apple loses the most.”
Although new mobile payment methods allow fraudsters to use stolen credit card information, consumers are still protected by chargebacks.
“When a consumer uses Apple Pay, they are still protected through chargebacks,” says Eaton. “However, chargebacks can be a double edged sword, and there is a high likelihood that those filing fraudulent chargebacks will get caught.”