Fear and Loathing with the Digital Wallet
By Chris Metinko, MainStreet
NEW YORK (MainStreet) —Perhaps the epitaph can wait for the old, plastic credit card.
While digital wallet app use is growing, it is doing so slowly. To make matters worse, some are warning the new way to pay leaves many risks.
“The security issues are likely to become a barrier to mobile payments,” said Chris Jay Hoofnagle, director of information privacy programs at the Berkeley Center for Law & Technology at the University of California, Berkeley.
Hoofnagle said customers currently have too many steps — with having to unlock both the phone and the payment app as security precautions — to make a digital wallet purchase convenient.
“Mobile payments now are just as inconvenient as check writing,” Hoofnagle said. “As with other payment systems, speed will erode security, and it will be interesting to see how the two values balance.”