Feb 29 2012

Mobile Wallets and Digital Wallets

Category: Cloud Computing,mPayments,SecurityTeknovis @ 11:46 pm

I read an interesting article about the differences between mobile wallets and digital wallets today – Mobile Payments: Life Is More Secure In The Cloud. I was not aware of the distinction!

There was one argument that I did not agree with:

Look at it this way: if your phone gets stolen and all your financial information is on the device, and the thief began making transactions, it would almost be impossible to tell if it was really you. With the cloud approach your account is constantly being monitored. So, for example, if a transaction is made by you in San Francisco on your desktop computer, then 10 minutes later one is made in Paris on your phone, it will immediately be clear that something’s wrong.

The author argues that the digital wallet is more secure, because it is easy to detect the fraudulent transaction being made in diverse locations. I would argue that such fraudulent transaction are inherently impossible with a mobile wallet.