Nerd Chick Adventures: Smartphone Security – Understanding Mobile Payment

If you’ve noticed offers at your gas station or grocery store to “pay with your phone,” you’ve seen what many claim is the future of how we’ll pay for goods and services: Near Field Communication, or NFC.  Whether you relish the idea of ditching your wallet in favor of swiping your phone everywhere you go or you shudder at the thought of losing a phone laden with all your credit card info, NFC is likely to gain in popularity in years to come.

Bluetooth and Wi-Fi are familiar forms of electronic communications that allow devices to transfer information back and forth.  They operate on radio transmissions and are designed to accommodate distance between devices.  Near Field Communication, on the other hand, utilizes electro-magnetic radio fields which require the communication partners to be in close proximity – typically less than 4 inches apart.

Advantages:

The advantages of NFC technology over Bluetooth and Wi-Fi is that it requires less power (resulting in improved battery life of your device) and the necessary close proximity reduces the likelihood of signal interference.  While Bluetooth requires that devices be paired, NFC connects automatically in mere seconds when devices are in range of each other.

Proponents point out the multitude of benefits beyond just a way to pay without pulling out your credit card.  If you’ve seen the commercials for the Samsung Galaxy S III where data is transferred from one phone to the other by tapping them together, you’ve witnessed integrated NFC in action.  Syncing data with other devices or transferring files is quicker and easier using NFC than via Wi-Fi or Bluetooth.

While many focus on the “mobile wallet” aspect of the technology (i.e., using your phone in place of a credit card to pay for goods or services), it can also be used to store public transportation passes and/or concert tickets, loyalty cards, even allow you to ditch key cards in favor of swiping your phone to access your office building, hotel room or parking lot.

Concerns:

The ease of using your phone for everything you previously had to dig out a plastic card for is appealing; however many are concerned about the security risks of having all this stored on such an easy-to-lose gadget.  You certainly envision someone snatching your phone for an afternoon shopping spree before you notice it missing.  Yet in truth, with how often you might use your Smartphone throughout the day, you’d be more likely to notice your phone missing than one of your credit cards.

The Reality:

Is it wise to consolidate access to every aspect of your life (bank accounts and credit cards, data, access to your home, car or office, etc) on your phone?  Proponents argue that it’s more secure than losing your wallet or purse due to the quick and easy ability to disable the device remotely (which is certainly faster than calling all your credit card companies if you lose your wallet).  NFC often establishes a secure channel and utilizes encryption when sending sensitive data like credit card numbers.  In conjunction with the required close proximity, there’s little risk that your data could be hacked by a passerby.

Should you get started with a service like Google Wallet (www.google.com/wallet) to store credit cards, loyalty cards and special offers on your mobile devices?  Maybe.  Many like the idea of never again having to dig out loyalty cards to get money off, but to be truly useful more retailers need to upgrade their equipment to support NFC.  This means you’d have to carry phone and wallet to accommodate a day of errands.  However, if enough of the merchants you frequent support it, it may be worth looking into – provided you implement the mobile device security measures highlighted last week.

Andrea

Andrea Eldridge is CEO and co-founder of Nerds On Call, an on-site computer and laptop repair service for consumers and businesses. Andrea is the writer of two weekly columns, Computer Nerds On Call a nationally syndicated column for Scripps-Howard News Service, and Nerd Chick Adventures in The Record Searchlight. She regularly appears on ABCCBSFOXNBCThe CW, and CNN on shows such as Good Day Sacramento, Good Morning Arizona and MORE Good Day Portland, offering viewers easy tips on technology, Internet lifestyle, and gadgets. Andrea recently has begun working with Demand Media to produce content for eHow.com and has written a book for them Smartphone 101: Integrating Your iPhone Into a Windows World. Andrea is available for Q & A’s, expert tech quotes and will appear on your show, call today! See Andrea in action at www.callnerds.com/andrea.

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Andrea Eldridge is CEO and co-founder of Nerds On Call, an on-site computer and electronics repair service for homes and businesses. Andrea established the company with her husband, Ryan, from a spare room in their home in Redding, California in March 2004. They have since expanded to locations throughout California, Oregon, Washington, Arizona, Maryland, and most recently South Dakota. Nerds On Call provides repair and trouble-shooting for PCs and Macs, home and office networks, printers, iPods® and MP3 players, handheld devices and cell phones, home theaters and game systems. If it has an on/off button, Nerds On Call can probably fix it. Andrea is the celebrated columnist of Nerd Chick Adventures, which speaks to the novice computer user and runs weekly in the Redding Record Searchlight. She regularly appears as a guest tech correspondent on ABC, NBC, FOX, and CBS on shows such as Good Day Sacramento, Good Morning Arizona and MORE Good Day Portland, offering viewers easy tips on technology, Internet lifestyle, and gadgets. For more on Andrea Eldridge, fee free to contact her through our contact form.
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