Mobile Payment Security

Legal Daily June 9

Mobile payment technology has been thriving in recent years, with both the number of users and volume of transactions higher in China than anywhere else in the world. Even street vendors now use QR codes to exact payment, while many senior citizens have also adjusted to this new way of paying.

However, it is still too soon to say that China has become a cashless society considering that over half the population is still using cash and given that mobile payment poses a number of security issues.

These problems stem from the possibility of people’s phones falling into the wrong hands or from loopholes in operating systems or apps. If the most widely used QRcode payment systems contain malicious code this could cause information leakage and serious financial losses for users.

More steps need to be taken to improve the security of mobile payment. First, awareness of security should be enhanced among users. Those using mobile payment should set a password and avoid the password-free function of online payment platforms. They should also cancel their accounts on payment platforms when they change phone numbers.

But mobile payment providers also need to play their role in ensuring the safety of users’ information and property by improving the ability of their platforms to detect theft and scams.

Those responsible for overseeing the sector should improve their supervision and management. Although China’s central bank, the People’s Bank of China, put in place regulations to reduce the risks of barcode payments earlier this year, supervision of QR codes has been absent. Both technical and legal measures must be taken in order to improve the safety of QR-code payment.