The plaintext nature of SMS text messaging is the one thing that makes TextPayMe disconcerting. Via Wired
Although the convenience of being able to pay each other via my mobile phone is absolutely compelling, I worry about the security of the system, especially in today’s world where its not to difficult to grab mobile transmissions. Since SMS travels as packet data over plain text, text message traffic can be harvested during many points in the pipe: air, Internet, and server.
Identity theft, credit card theft, fraud, the list goes on.
And, this is indeed deja vu. Paypal already tried this.
Back in the first days of PayPal you could download a Palm application that would allow you to beam money from your PayPal account to anyone else with a Palm, the application, and a PayPal account. I thought it was super cool and used it like crazy with the two other people who were as nerdy as I was. Okay, am. I don’t know why the Palm application for Paypal was terminated but I have a feeling it had to do with the security of financial data and records. In the case of the Paypal Palm application, there was some encryption and some security. The Palm needed to sync to a safer desktop application and was merely a “wallet” and not a bank for the cash. And the Internet was a kinder, gentler place back then.
I don’t know, it sounds to me like a bad idea unless it becomes something more like the system of safe, secure, regulated micropayments that the Japanese mobile phone user has had for year in DoCoMo.
Until then, IOU.
Comment (1)
What about the fact that TextPayMe does a phone call right after you send a payment, and requires that you enter a PIN number for the payment to go through? How many freaks out there haven’t bought something over the phone or internet before. TextPayMe is no more vulnerable than anything else. Don’t give out your PIN, and don’t be stupid, it’s as simple as that.
BTW, Paypal is rumored to be rolling out a similar service soon.