Banks commended for maintaining mobile payment security

Financial institutions in the US have been successful in their efforts to keep mobile payments secure, one company has stated.

According to the First National Bank of Omaha, the security of mobile transaction technology has had the "potential to be problematic", MarketWatch reports.

However, chief credit officer Jerry O'Flanagan noted that no significant issues have arisen to date.

This, he said, shows banks have done a "good job implementing data encryption protocols that have been proven effective so far".

Nevertheless, a lack of knowledge among members of the public could remain a problem.

Consumers Union believes that many people do not realize they "may not be getting the same protections" if they make a payment with a mobile device rather than a credit card.

The groups were speaking after a study by Javelin Strategy and Research, published by Research and Markets, revealed more and more consumers are using their phones to make mobile P2P transfers.

Posted by Paul Newton