Are Google Wallet and Apple Pay safe to use?

Apps like Google Pay, Samsung Wallet and Apple Pay are more secure than your physical credit card. That's because they use a process called tokenization

Services like Google Pay and Apple Pay let you pay in stores using your smartphone or watch instead of a physical credit card. It can be tempting, especially since you can save space by leaving your bulky wallet at home. Many cities around the world have also adopted these apps for public transport payments. But doesn't this convenience come at the expense of security? And should you be wary of relying on these apps for everyday payments?

Are Google Wallet and Apple Pay safe to use?

Apps like Google Pay, Samsung Wallet, and Apple Pay are safer to use than your physical credit card. That's because they use a process called tokenization, which adds an extra layer of security over physical cards. When you add your card to a payment app, its details, such as the 16-digit number and validity, are not transferred. Instead, the app contacts your bank or card issuer to request a token. You can think of this token as a long random number that lives exclusively on your phone. Your bank or card issuer will only issue such a token to trusted applications like Google Pay and Apple Pay. You will also need to verify your identity, which is usually done by entering your card details and receiving a one-time password via SMS, in order to receive your token.

You might be interested in

Google Wallet is getting hungry for your cards. He is working on an interesting tool

The token is stored in a secure part of your phone's chip – similar to biometric data such as fingerprints. But even if someone managed to hack your phone to gain access to this token, it wouldn't work on another device. Tokens are usually tied to individual devices. Also, part of the token changes every time you use it, depending on factors like date and time, meaning it can't be captured and reused.

Another benefit of using tokens is that a potentially malicious payment terminal cannot steal any card information when you hold your phone. The captured data would look like a bunch of random numbers, which isn't particularly useful. In fact, the merchant cannot identify any personal information when you use a tokenized card.

How do payment apps like Google Pay and Apple Pay work?

Payment applications use your phone's near field communication (NFC) antenna. NFC is a wireless technology that you may already be familiar with if you've ever used hotel or office cards. It enables communication between two devices over short distances, for example when you bring your phone within a few centimeters of the payment terminal.

Modern credit cards have an integrated NFC tag, which allows you to simply hold them to the terminal and complete the purchase. However, these physical cards cannot be programmed to act as another card. On the other hand, your phone can serve as a programmable NFC tag. This means you can store multiple tabs, even in different apps, and switch between them as needed.

Can anyone use the saved cards in Apple Pay and Google Pay if I lose my phone?

No, your saved cards in Apple Pay and Google Wallet are always locked behind a screen lock password or biometric data such as a fingerprint. Even on a wearable device, a PIN will be required to confirm payment. This may seem like an inconvenience, but it prevents phone thieves from accessing and using your stored cards. Because of this, using payment apps on your phone is actually safer than carrying around a wallet full of physical credit cards. If you lose the latter, anyone can simply swipe the card or use its chip to rack up high purchases before you know it. Very few countries require a PIN or signature to verify credit card transactions.