Mobile Payments: Worth The Risk?

PayPal is suing Google over trade secrets related to Google’s new Mobile Wallet and Mobile Offers technology.

At issue is whether Google’s new technology is based at least in part on insider info from a former PayPal executive who now works for Google.

What I find most interesting is that at the very heart of this new technology is a dispute over data security; exactly the issue that gives me most pause as I consider whether or not to swap my trusty credit cards for a specially enabled mobile phone.

I’m not the only one worrying about it. Security concerns are reportedly the #1 reason consumers in Great Britain say they hesitate to enable their phones for mobile purchasing as well.

So are those concerns justified? Google says their transactions are encrypted and secure. Some analysts say that’s not enough.

I also worry that turning my phone into a big fat credit card gives thieves just one more reason to steal it. If your mobile wallet is lost or stolen; Google’s advice is that you call and cancel your account just like you would for any other credit card.

So, I’m wondering why not just use a regular credit card, which is cheaper, easier to replace, and doesn’t have as much other important data on it as your phone?

Don’t get me wrong. I love new mobile technology. I’d just rather have more money in my pocket to spend, than more gizmos in my pocket to help me spend it.

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