"Those with a history in the mobile payments industry know that it has been a slow (and mostly disappointing) journey. But now, reflecting on the current ecosystem forces at play, I believe we find ourselves surrounded by a set of market trends that can finally give mobile payments a viable path to scale" says Alberto Jimenez for TechCrunch. "...Security in payments used to be a hygiene factor, something that you expect but that didn’t create differentiated value. However, after multiple, widely covered sensitive data breaches, security has become a value proposition in itself."
Perhaps users are remaining cautious in the light of well documented, heavily reported-on breaches of retail environments. Credit card numbers, or sensitive data, are captured by bad actors in a number of ways, including phishing, hacking into back end environments/servers, breaching the network or skimming (actually copying credit card information from an ATM or the like). With so much in the news, so frequently, security is becoming something users are turned into - and something that could potentially drive adoption of new technologies...like mobile payments.
Says Jimenez: "Industry-wide initiatives, such as tokenization, have the potential to significantly increase the level of security and subsequently the general public perception about payments - specifically the kind initiated on mobile devices."