Security Concerns
Before NFC technology can become a universal payment standard awareness
must be raised about security issues with mobile phones. Viruses will
become a major concern in the realm of mobile communications, especially
with NFC chips. Spyware can be implanted on one device then spread from
one device to another through subsequent transactions Despite this real
concern, a recent study revealed that 71% of smart phone users have
never considered installing anti-virus software on their phones (Geiger,
2011).
What is even more surprising is that less than 50% of people put passwords
on their smartphones. This further complicates the security issues
especially when considering the potential of lost phones. From a
Barrons.com blog post by Tiernan Ray: the most likely method of funding a
mobile wallet, by tapping into a bank account, does not actually clear the
funds till an overnight update happens, unlike traditional debit cards,
where money is cleared right away. [This] means merchants can be left
hanging when there are insufficient funds. Recouping losses from fraudulent charges for both, merchants and theft victims could become more difficult.