Mobile payments here refer to cashless and contactless payment with mobile devices at the point of sale (POS). It differs from mobile banking, which is used to conduct various banking transactions with the help of mobile devices.

Although more and more people are using mobile devices for many everyday things, and even notice the loss of a smartphone more quickly than a wallet or key, it is not yet common practice, at least in Germany, to pay with a smartphone at the point of sale (POS). For many consumers, cash is still the payment method of choice. Security concerns, unperceived added value of mobile payments, but also the lack of mobile payment options are only a few reasons for the sluggish development.

Thanks to increasingly powerful smartphones with ever larger displays and the provision of a wide variety of functions for connection, usability is increasing - because mobile payment solutions are also becoming more functional and easier to use.

Mobile payments bring concrete advantages. This type of payment is more hygienic than cash or card payments. The transaction is faster and saves time for both retailers and customers. In the future, the advantage of being able to make payments on the spot and on the Internet with one device for online purchases could lead to a strong increase in use. This goal is also driving the combination of mobile payment with additional offers such as bonus programmes or special offers and services.

All individual transactions can be tracked on the device, making it easier for users to monitor the overall movement of money and keep track of their own finances. Mobile payment also cuts out opportunist theft and the spread of counterfeit money.

Golden rules for mobile payment

The following tips can make it easier to opt for secure mobile payments, even though there is still no uniform standard for paying with mobile devices:

• The prerequisite for mobile payment with a smartphone is the NFC-capability of your device or the availability of an NFC payment sticker to stick on the mobile device. Alternatively, you can install the application (payment app) required for payment.
• Only install the corresponding software (payment app) from trustworthy sources - your standard app store.
  Use the latest version of the app and install software updates as soon as they are available.
• Think carefully about what data you disclose in which app; possible linking of payment and purchase data with usage and location data can form meaningful user profiles and create the risk of data misuse.
• If possible, set up an automatic app lock that takes effect if the login password or a TAN is repeatedly entered incorrectly.
• To protect personal data, the additional functions that are not necessary should be switched off or blocked, although this is not always possible on all operating systems for all banking apps.
• Do not use a rooted/jailbroken mobile device for mobile payments.
• Keep your mobile device up to date with the latest operating system, etc.
• Use the screen lock on your device with a PIN, password, fingerprint (Touch ID) or face recognition (Face ID).
• If you lose your mobile device, have your SIM card and all access to your bank accounts/bank cards blocked immediately.
• Check the transactions on your account regularly and inform your bank of any unusual activity.
• Only activate Bluetooth, NFC and WLAN when you use them to make it more difficult for attackers to connect to your mobile device. You can switch the functions off and on in the quick settings