Bizum, Google Pay, Samsung Pay, Apple Pay, TWYP, BBVA Wallet… Currently, there are multitude of options that allow us to pay with our mobile phones without resorting to credit or debit cards. Each one of these options makes use of a different type of technology in which security prevails above all. In fact, everything you need to know about mobile payments goes beyond the applications themselves: security methods, standards, encryption technologies, payments to third parties … To shed a little light on this subject we have created a fact sheet route with everything that is convenient to know about this type of systems.
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What are the technologies used to pay with the mobile?
Before talking about the different types of applications, it is necessary to know the technology behind them. Today’s app ecosystem draws on three types of technologies: NFC, QR, and TLS. Each of these technologies is oriented to a different scenario. For example, NFC, also known as Near Field Communication, is intended for use in POS devices (dataphones, in popular language) like the ones we can find in any consumer store. As it is a technology that depends on a specific chip, not all mobile devices support payment via NFC.
NFC technology is also common in smart watches and bracelets. The integration of this technology in wearables allows us to get rid of the phone so as not to depend on the device.
NFC compatibility also depends on the application we use. Today, there are banks that do not support payment through NFC, reason why we are forced to resort to third-party solutions, such as Apple Pay or Google Pay. To pay through this system, simply bring the phone close to the dataphone with the corresponding application open and the NFC active to complete the transition. Depending on the quantity, the application will prompt us to enter a password or the fingerprint that we have previously registered.
It’s time to talk about QR technology, also known as Quick Response. QR codes are an evolution of the traditional barcode. Due to the current health situation, its use has spread in bars and restaurants to avoid human contact. Unfortunately, the use of this technology in mobile payment applications it is still not very popular in our country. Yes it is in Japan or China, where payments are made through applications like WeChat.
Applications like PayPal allow us to transfer money between accounts through a QR code. There is talk that WhatsApp will launch a similar method throughout 2021.
If we focus strictly on its operation, the system does not differ much from NFC technology. The biggest difference from the latter is that it does not depend on a dedicated chip, since the identification of the code is done through the mobile camera. To this we must add that the security between transactions depends on the application itself rather than on the system itself. In other words, the creators of the application are responsible for the security of payments using QR codes.
The last standard used in mobile payments is the TLS standard (Transport Layer Security in English). This technology is the in charge of encrypting conventional transactions between banks: transfers, service payments … It is also the technology used in Bizum and TWYP, two of the most popular payment options in our country.
What is the difference between bank apps and third party apps?
Within the current application park we can divide the options between bank applications and third party applications. The difference between these two groups in purely practical terms starts from the philosophy of each application. And it is that while the applications of banks are destined to carry out any type of transaction from a registered bank account (issuance of credit cards, transfers to other entities, application for bank credits, payment of fees and services, checking of bank movements, debit card cancellation), third-party solutions are limited to offering mobile payments through a credit or debit card.
This is what the CaixaBank application looks like.
On a strictly functional level, third-party applications serve as a complement to bank applications if they lack NFC support. Within the first group we can find applications such as ImaginBank, La Caixa, BBVA, Banco Santander or ING. In the second group we find applications such as Google Pay, Apple Pay or Samsung Pay.
Is mobile payment secure? Can you hack me? Is it safer than a conventional card?
At this point, the most logical thing is to ask about the security of this type of system. Oddly enough, the security methods used in mobile payments are the same as those used in credit and debit cards and conventional transactions. In fact, most cards today have an NFC chip that allows them to make payments contactless, the same NFC chip that we can find on our phones.
The use of this technology not only helps to improve the user experience, it is also intended to prevent potential card theft attempts by duplicating or replicating credentials, since we will not have to introduce a physical card in the dataphone. Something similar happens with banks’ own applications if we focus on transactions. By making use of the same security systems that are used in conventional operations, any type of transaction made through the application is protected by the same algorithms that support bank security.
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As for the possibility of suffering a ck hack ’, the majority of cases reported today are due to social engineering methods. These methods are used to make the user believe that they are inside a page, application or service that does not correspond to the actual support. Often robbery attempts arise through emails impersonating banks. The use of Bizum is also common in scams forged around applications such as Vibbo, Milanuncios or Wallapop. None of these cases has to do with the security of the applications.
All the differences between Bizum, Google Pay, Samsung Pay, Apple Pay, TWYP and BBVA Wallet
We have already discussed the differences between systems. Now it’s time to talk about the differences between the applications that currently coexist on Android and iOS, starting with Bizum.
As we saw in the corresponding article, it is a solution developed by different entities in our country to standardize and streamline payments between individuals and small businesses, so that operations (payment of services, money transfers …) are carried out immediately regardless of the entity from which it comes.
This is what Bizum looks like in the ImaginBank application.
This solution is integrated directly into banking applications, so we will not have to resort to a third-party application. It should be noted that payments through Bizum are accepted through codes supplied by SMS. The method used to secure transactions drinks from the TLS system of banks, that is, the conventional system of transactions between banks.
A very similar solution to Bizum is TWYP, ING Direct’s virtual card service. Despite the fact that at first it was born as an independent application to make payments and transfers immediately, today it has converged into a virtual card that we can use through services such as Apple Pay or Google Pay through NFC technology.
Despite its conversion, the application continues to maintain instant money transfers between individuals and TWYP customers. The biggest difference with Bizum is that it does not integrate with third-party banking applications, as it is an ING Direct service. In other words, we will have to download the eponymous application on our mobile. The advantage of TWYP is that we can withdraw cash from the phone at various points compatible with the service, such as Dia, Clarel, Galp, ONCE, Hipercor or El Corte Inglés Supermarkets.
The next solution is Google Pay, an option that coexists with Samsung Pay and Apple Pay. Beyond the technical and aesthetic differences between each of the solutions, the operation is practically identical. In summary, these solutions allow you to register compatible debit and credit cards to make payments contactless a posteriori through NFC technology.
This is how Samsung Pay looks.
Perhaps the biggest difference between each of these services is the availability and compatibility of banking entities. Google Pay and Samsung Pay are the two options with the most support from banks in Spain, while Apple Pay is somewhat more limited.
The latest popular solution in our country is BBVA Wallet. Despite the bombastic of the name, the truth is that is nothing more than BBVA’s mobile payment service outsourced as a separate application. The unique functionality of this tool is to make mobile payments via NFC through registered BBVA cards. There are similar solutions such as CaixaBank Pay, from La Caixa, or ruralvía pay, from Caja Rural.
The functionality of all these is the same: separate mobile payment management from banks’ general application. Curiously, these same entities allow mobile payments to be made from the main application, so we will not have to download them obligatorily.
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