The launch of Apple Pay last month marked the latest milestone in the UAE’s adoption of contactless payments and heralded a new era of convenience for iPhone users in the country.
Mobile wallets help to remove friction from the payment experience by conducting a transaction with the simple tap of a phone. In a country where, according to an upcoming Visa study, approximately three quarters of people spend more than three hours a day on their smartphones, the opportunity for mobile payment is clear.
That said, having the option of using a mobile wallet and actually doing so are two different things. The same study points out that over 40 per cent of UAE consumers have concerns around the security of their personal and financial information on their phone. It highlights the need for more consumer education on just how secure it is to use their mobile phones as a payment device — a solution that includes new and improved safeguards against digital fraud compared to the physical wallets they use today.
Aside from the use of biometric technology to ensure secure access and use of a mobile device, many mobile wallet solutions are embracing Visa tokenization as a key enabler and security measure for supporting payment in a digital world, making these services some of the safest ways that a consumer can pay.
Tokenization keeps sensitive account information safe on the Visa network and away from the mobile device itself. Information like the 16-digit account number on your card is replaced by a unique digital identifier, known as a token, which allows the payment to be processed without exposing any account details, thereby reducing the threat of sensitive cardholder data being compromised.
Today, many of the world’s largest tech companies, including Google, Apple, and Samsung (the latter two of which have launched their mobile wallets in the UAE earlier this year), are using Visa tokenization to power and secure their digital payment solutions for mobile, online and in-app payments. Tokenization is also helping to accelerate the development and adoption of both the eCommerce and mCommerce spaces by enabling them to develop innovative retail experiences without the burden of handling sensitive payment account data.
The tech-savvy, mobile-focused UAE consumer shows strong potential for adopting frictionless, card-free payments in digital commerce environments. Education is now the key to address concerns related to using mobile payment services and how tokenization can be used to safeguard sensitive consumer information.
Nathan Cushnie is Head of Digital Solutions, MENA, Visa.
