As we move towards the future, emerging mobile payment technologies are trying to change the way we spend money and hopefully simplify it. Companies like Apple, Samsung, and Google have all launched their own versions of this concept.
One thing that they all do similarly is how they process your payments. Once you link a card to the app, you can pay at millions of stores through NFC or MST (for Samsung phones). The phone transmits a tokenized version of your card number, to the payment terminal, which keeps the entire transaction secure. This token is then refreshed for the next payment. If a company gets hacked and card details get leaked, the thief won’t be able to use it as it can only be used once. Mobile payments also require you to use more advanced forms of identification. Compared to a debit card where a 4 digit pin is required, biometric authentication can be set as default for mobile payments.
The only limitations that come with using a phone to pay is that it is not accepted everywhere. Some companies such as Samsung are using new technology like MST (Magnetic Secure Transmission) to make it possible to pay anywhere a card can be used. As time passes, these limitations will likely disappear and retailers will adapt to this more secure standard.