Will you use your Smartphone for payments?

Google is said to be working with MasterCard and Citigroup to deploy NFC technology inside of Android phones to allow mobile payments. Apple is expected to deliver NFC on its next iPhone, which could create critical mass for mobile payments…

Still consider, believe it or not? 🙂

Think of a Smartphone as a very small laptop or netbook. People wouldn’t think twice about banking with either of these devices so a Smartphone should be thought of in the same way. In fact what is the difference between a mobile phone and website purchases in terms of security?

Before starting to use online banking via your Smartphone, there are some major considerations that need addressing. The first thing to consider is something that applies to any website you use that requires a log in. Never allow your Smartphone to remember these passwords as, if you are unlucky enough to have your phone stolen, your account is wide open and is likely to be emptied by a phone thief who has hit the jackpot. Most banking sites employ a secondary identification system where you need to answer supplementary questions but if you have allowed your phone to save these also then you really are asking for trouble.

Performing transactions via your Smartphone could also be risky but, as long as you are careful and pay full attention to the screen. It is all too easy to press the wrong key on your Smartphone, especially if it is a touch screen design. This means that if you were transferring money between accounts or paying a bill, you could easily find yourself paying either too much or too little.

To summarize, using your Smartphone for payments is a great tool providing it is used properly. It will give you up to date information whilst you are on the move and maybe even allow you to make difficult cash flow decisions without having to wait until you are back at a desktop PC, thus saving time.