Evaluating Security Barriers in Mobile Payment Technology

Banking CIO Outlook | Monday, November 26, 2018

The viable digital branch is now found to be a top priority for banking customers. With the revolution towards digital financial services provided by the technology giants such as Google dabble and Amazon, the customer expectations are increasing rapidly; they are demanding a similar type of financial services from banking sectors. Furthermore, the economic importance in the financial analysis has made banks to rely on the traditional standardized structures comprising of outdated and strict rules in defining the financial tasks.

The technological advancement in miniaturized devices such as mobile phones enables users to utilize numerous applications which deliver effective financial services, enhance mobility, flexibility along with better efficiency. In real time, applications developed for mobile devices are immense and are likely to evolve as ubiquitous devices with advanced payment options. Customers can access their bank account any time through mobile devices and perform smart financial transactions by themselves.

The operations carried-out through mobile services are categorized into three types namely mobile accounting, mobile assessment, and mobile budgeting services. They comprise actions such as fund transfer amongst the individuals, payment of commercial and government bills, micropayment handling, and device recharges.

With the extensive utilization of mobile banking for a financial transaction, users are prone to malicious attacks resulting in misuse of their personal data or financial losses. This risky situation also gives rise to the lack of trust amongst individuals undergoing financial operations through mobile banking and questions about the stability factor in the system.

Another barrier to the deployment of novel technologies in mobile banking is the perceived cost of acquisition and usage. During the financial transaction, there is some hidden transaction cost applied to the customers, which has a negative impact demotivating the customers to leverage mobile banking. Furthermore, with software and compatibility issues such as integrity amongst different platform, glitches and bugs will hinder the performance of mobile banking.

Moreover, with the third party vendors processing towards digitization to purchase products online, it’s challenging for customers to update their card details and complete the transaction frequently. Integrating mobile banking and end-to-end solutions will provide customers with a user-friendly way of making payments online and completing their purchase. But the main barrier is the lack of trust and security breaches. By removing these barriers and implementing high-end software with advanced machine learning algorithms and lightweight security protocols will help consumers to have a positive view on mobile banking that can offer secure and reliable financial transactions.

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