UPDATED 11:50 EDT / OCTOBER 16 2013

Mobile Payments Are More Secure than Web : Tips from Braintree CEO

Today’s debut of Square Cash introduced one of the simplest ways to send money to friends, via email, adding to a string of business-ready apps to Square’s growing portfolio.  But in its efforts to simplify the exchange of cash through the use of technology, could Square intimidate average users with a service that requires no passwords, no bank account numbers, and no accounts whatsoever?

It seems Square Cash raises more security concerns in the cloud-based money exchange market, concerns Square does not directly address on its new Cash website.  While Square ensures your data’s privacy, there’s little information the company provides on encryption methods or other tactics used for your protection.

“At first glance, you might assume that an SMTP-spoofing program could convince Square that you’re sending money from an email address that isn’t yours,” writes The Verge columnist  Ellis Hamburger, imagining one security-breaching scenario, going on to provide Square’s reply:

“When we built the product we were all thinking of the same thing,” says Square product manager Brian Grassadonia, “but the product is 100 percent secure. Nobody is going to get taken advantage of via spoofing.”

Mobile payments can be more secure than web

 

One thing Square could have working to its advantage is a focus on mobile, with iOS and Android apps launching for Cash as well.  While these apps are merely shortcuts for composing the email used to send cash to friends, their mobile ties could very well enhance privacy and security for end users.

According to Braintree CEO Bill Ready, mobile payments can be more secure than web payments.  The reason for this is linked to the amount of information that a mobile device can tell about its user. The sensitive information associated with a mobile transaction can be stored in a secure location, with the handset itself being used to identify the consumer. The mobile device can be used for 2-way communication, so if verification of the user’s identity is needed, it can be achieved instantly.

Ready dropped by theCUBE earlier this year to share his views on the mobile payments industry at large, and what the future holds for this exciting market.  He provides some great insight on the subject, as well as tips for businesses looking to incorporate secure payments options in the most convenient manner.

See his entire commentary below:

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