New Technology Will Allow Visa, MasterCard Purchases with Mobile Phones
Justin Sullivan/Getty Images(NEW YORK) — Visa and MasterCard are proposing a new way to pay with your credit card — without using your credit card.
Both credit card companies are announcing new Internet-based technology that will allow users to enter and store their credit card information remotely, then pay with an encrypted signal when they have their smartphone in front of a card reader.
The technology — called near-field communication, or NFC — is now standard on Android phones.
Unlike mobile wallets, the credit card information itself isn’t stored on your phone, making it safer, says MasterCard’s James Anderson.
“Every transaction requires a consumer to enter a PIN number before they actually tap at a terminal,” Anderson says. “So if the phone is ever lost or stolen, as long as the customer has kept that PIN number secret, nobody who’s ever picked up the phone will be able to pay with it.”
While MasterCard says it’s “very comfortable” with the security provisions, identity theft expert Adam Levin is reserving judgement for now.
“A lot of people are gonna try it to see how it works out and time will tell how secure the system is versus how convenient it is,” Levin told ABC News Radio.
According to Levin, it’s still possible for hackers to get into your account.
“Your phone can be commandeered, and even if the information isn’t directly on your phone, there is some form of application that actually gets you to that information,” he said.
Visa and MasterCard plan to roll out the new technology over the next year.
Copyright 2014 ABC News Radio
Leave a Reply
You must be logged in to post a comment.