A recent report shows that Apple Pay may not be as secure as the Cupertino company would like you to think.
Cherian Abraham, a Mobile Payments Advisor with Experian Global Consulting, estimates that almost 6 percent of Apple Pay purchases are with stolen credit cards, 60 times that of regular transactions.
Security analysts say that the main problem with the service is with the setup. Users simply open the app, enter their credit card information and, within seconds, Apple and the credit card issuer reach a decision on whether or not to approve the user.
"The issuers were probably so eager to be involved that they kind of forgot best practices and sidestepped some procedures they normally would've had [in order] to accept Apple Pay," said Michelle Evans, senior analyst for consumer finance at market research firm Euromonitor.
Apple Pay, which launched in October, was cited for it's simplicity and the number of stores and banks accepting the service has grown steadily since its launch. Bank of America said customers added 1.1 million of its credit and debit cards to Apple devices in the first two months of Apple Pay. JPMorgan Chase cited a similar figure.
Security concerns with Apple Pay could grow as the company looks towards online purchases, said Amitabh Saxena, the founder of the digital-payment consulting firm Digital Disruptions. When fraud occurs online, liability defaults to the merchant rather than to the banks.
It is important that your point of sale system is always up-to-date to keep it secure from the latest cyber threats. If there's a concern that your company's data isn't as secure as it could be, upgrading your credit card payment software will give you the peace of mind you need.