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Digital Wallets Have Yet To Catch On, JPMorgan Executive Says (reuters.com)
Despite major tech companies working aggressively on making digital wallet solutions available everywhere, these digital payment apps in our smartphones are yet to gain traction, according to Chief Executive of Consumer Banking JP Morgan Chase & Co. From a Reuters report: Apple Pay, Android Pay, and Samsung Pay are being used for less than 1 percent of payments at retailers, Gordon Smith said, citing industry data at an investor conference. Ultimately, the convenience of paying with phones will bring a surge of use from consumers, but it is impossible to know when that inflexion point will be reached, said Smith.
I bank with a decent sized local credit union. After they got finished patting themselves on the back for their technological advancement rolling out EVM cards, they refuse to support any of the digital wallets, including Apple's, Android's, or Samsung. Their reasoning (at least as of December 2015) is that no one is using them.
Well, it's kind of hard to use them if you don't support them and permit the card to be tied to a digital wallet. So we have a chicken an an egg problem. They won't be supported until usage goes up, and usage won't go up until they're supported.
The MCX, which has Walmart and CVS in their membership, wanted to push their anti-consumer CurrentC app so they could avoid credit card charges.
CVS even had a working mobile wallet payment system working with Android, but disabled it when Apple Pay was launched.
When the world's largest retailer doesn't want to support something, it gets hard to adopt it.
http://www.macrumors.com/2016/...
Grammer Nazis - I mod you "troll" unless you actually add something on-topic. Yes, I know I have mispellings in my sig.
The only hitch there is you are now relying on a general purpose, always connected, mobile computer to hold the keys to the kingdom. We know that there are 0 days out there that can root your phone remotely.
At least with a CC, the would-be thief needs to get a physical thing and not just blast malware en masse.
My eyes reflect the stars and a smile lights up my face.
Oh, god, the irony. Did you just bitch about your credit card company sending you a statement proving how closely they track your spending??? Maybe you should look up the definition of "account" or "accounting"... seems like a credit card company wouldn't survive long if they DIDN'T track your spending perfectly.
The real concern for you should be how they use that data, and who they share it with.
Second, please point me to the news story that says the secure enclave in your phone is a worthless data sieve and is far worse than the risk of carrying a traditional credit card, or cash? I mean seriously, I regularly find cash lying on the ground in various places, parking lots, playgrounds, etc. but I've NEVER lost money due to trusting my phone.
Which has more power: the hammer, or the anvil?
Agreed. And the important point is that I don't trust my phone, or any of the equipment the retailer is using. I know that my credit card company / bank trusts my phone to allow the NFC transactions, and that's all I need to be indemnified by federal law and limited to $50 max damages by the Fair Credit Billing Act.
Just because I can hook a shark from a boat, I do no offer to wrestle it in the water.
My concern is not with telling me I spent $45.27 at Vons Friday, $52.87 at the gas station on Sunday, and $19.12 at Applebee's Tuesday. I'm fine with that and need it to verify I actually made those purchases.
No, what bothers me is the end of year statement has maybe 100 categories, from food,to alcohol to gas,to prescription drugs to amusement park admission to tires you get the drift. They tell me how much I spent in each category. As none of the amounts are 0 I assume there are more categories, they only print the ones with a non-zero amount.
All the crap in my wallet is still smaller and lighter than a smart phone. or even than my flip phone, for that matter.
I am curious a to who is responsible if someone steals your phone and hacks their way into it, and uses it to buy stuff. Once the new standards go into effect in October, I suspect that will be the consumer using the phone, because that's the lowest level of security (not using the chip). With a credit card, it might be the merchant (if they're not using EMV), if might be the merchant service, is might be my bank, but it won't be me.
If properly implemented, and it seems Android and Apple do, contactless payment via your smartphone is a lot more secure than anything else. Some advantages it has:
1) A proxy number can be used for each transaction. Your real number need never be used at any time, as a proxy can be created for each transaction. The bank lets the phone know what proxies to use, and the phone lets the bank know when they are used. so even if the merchant gets completely owned, the information gleaned on you is useless as it was valid for that transaction only.
2) You have a device that can notify the bank of the validity of the transaction. Not only will the payment terminal contact the bank for payment, but your phone can let the bank know as well. Now there has to be some slack built in the system to make sure that it can work even if you don't have signal, but basically when your phone gets back on the network if the transactions don't agree, a flag can be raised.
3) You have some defense against a compromised terminal that overcharges (basically a merchant that has messed with their terminals to charge a different amount than displayed. Your phone knows how much the charge was, and shows it to you. If that is different from the amount on the screen, you can contact your bank there and then and stop the transaction.
4) The two-factor auth is taken off the device, on to your device. You have to unlock your phone to use the payment, so you have a 2-factor setup (your phone + either code or biometrics). However with chip+pin, the pin is entered on the terminal so if it is compromised, it can get your pin. The terminal can't get anything when a phone is used as the auth is on the phone, not the terminal.
It isn't flawless, but it is a decent step up from the security of just using a card.
I'd still not use it.
You hand an opened phone to a cop to show your drivers license...you've also just handed then your phone, fully opened and gave them authority to search as they please.
No thanks, I don't open my phone for cops, hell, if I get pulled over and they ask me out of the car, I get out with window rolled up and I lock the door behind me.
"No officer, I do not consent to searches"...that goes for my phone too.
Light travels faster than sound. This is why some people appear bright until you hear them speak.........