New Study Shows Using Apple Pay Or Google Pay Reduces Risk Of Hackers Getting Your Financial Information

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According to Visa, you are 74% less likely to have your credit card information stolen from a retailer or payment terminal at a store when you use contactless payment, a technology that has been branded as Apple Pay and Google Pay and is also available on many newer credit and debit cards.  The transaction is faster that cards with a chip, and is far more secure as the retailer and the point-of-sale card machine never gets or see your actual card information.  And in the days of the Covid-19 pandemic, it’s also healthier to not touch those payment machines.

Apple launched Apple Pay in 2014 and became the dominate name in contactless payments although Google actually released theirs in 2013.  Adding to that, Samsung Pay came along in late 2014 also.  According to data compiled by Apple, Google and merchant services, about half of iPhone users now use contactless payment at checkout and about 35% of Android phones that are equipped with Google Pay also use contactless payments.  

Despite the names Apple Pay or Google Pay, any contactless payment reader will accept any other contactless payment brand, so you can use your Google Pay at a reader that says Apple Pay, and you can use your credit or debit card that has the little wireless icon on the front at any contactless payment terminal as well.

Jamie Fernandez of Consume Security says not only is contactless payment more secure, it’s also more convenient.  You can use it with your android based watch or apple’s iWatch as well.  And since you can load multiple cards into Apple Pay or Google Pay, at checkout you can always chose which card you want to use.  When checking out, your phone sends a one-time use virtual credit card to the payment terminal reader.  Your name or card expiration are not transmitted, so even if a retailer were able to get your virtual card number, they don’t get your name or the card’s expiration date, additionally, all they get is a virtual card number that was only valid for one payment.  Each time you make a payment, another virtual card is created and given.

Visa stated about half of their contactless equipped cards are used in a contactless payment at least once a month.  MasterCard said about 25% of their cardholders uses contactless payment.  The amount grows each year, in 2014, it was less than 1%.  In 2017 it stood at about 10% and in 2020, about 43% of all customers with contactless payment abilities use it at least once a month.