Monday, October 20, 2014
Does Apple Pay dent the security problems with credit and debit cards now?
Would Apple Pay be more secure than use of plastic credit cards (and especially debit cards)? Well, yes, experts say that the concept of “tokenization”, Secure Element, and Touch ID (based on fingerprint) provides security comparable to the European chip system for cards, which US banks are supposed to use starting in 2015. Apple Pay will start with iPhone 6 and only a minority of stores accept it yet.
The fingerprint checking would make stolen phones useless for thieves if implemented properly. There’s a detailed story in CNET by Marguerite Reardon here.
But similar security features may be possible with PayPal applications soon. The overall implication is that traditional bank accounts might not be the safest way to do business forever. With PayPal, however, I have to watch out for volumes of email spam.