Q: I've been hearing a lot about paying for services and merchandise via Smartphone. I'm really leery about this for several reasons, one being security. Any advice?
-- Sammy Suspicious
A: Dear Mr. Suspicious: Frankly, I think you're wise to thoroughly check out "checking out" (sorry, couldn't resist) by phone. I think once this new technology catches on, many consumers will decide they prefer this method to credit cards.
Ellen PhillipsLet's first address your primary concern -- security. According to research, using this app is actually safer than using a credit card. Each system (Apple Pay, Google Wallet, and Paypal) has its own protective layer. For example, Apple Pay relies on a pass code or a fingerprint verification; Google Wallet mandates a four-digit code to open it up for a specific time period; and Paypal asks for both username and password before approval, much like it does currently. And, don't worry about your name being sold to telemarketers. Apple Pay collects no transaction info. While Google Wallet does store encrypted payment data, it doesn't sell any of it and, finally, users can turn off Paypal's cookies so no one has access to your figures.
More and more businesses accept phone payments these days and experts say the numbers are climbing. Anywhere from Panera Bread to Home Depot, from Walgreens to Whole Foods, companies want to make life easier (so we'll purchase more, I'm sure). Even at the other end of the spectrum, one or more of these apps - or others to follow - pays the babysitter, buys the movie ticket, uploads gift cards, and a wealth of additional by-phone expenditures. Even better, because the credit card numbers are encrypted in the cloud, thieves are barred from stealing. Just lock everything down remotely.
Even with all this technology, however, a digital wallet is still only as good as your phone's battery and charger. To alleviate the prospect of a dead phone and, thus, no credit card purchasing power, try the power booster "Tylt Engergi Sliding Power Cases," which gives about ten extra hours of charge. Because its price starts at $80, though, I urge the much cheaper method of simply keeping your phone charged via traditional means.
Contact Ellen Phillips at consumerwatch@times freepress.com.