Security researchers have discovered a major flaw in Express Transit on iPhone that allows hackers to steal money from a user’s Visa card. They say the problem can be easily fixed, but neither Apple or Visa seem interested.
The flaw makes it possible for iPhone’s contactless payment system, designed to make it easier and faster to pay for public transport, to be charged arbitrary transactions by a device that imitates a transport terminal.
Like the Borg, Star Trek‘s race of cybernetically enhanced humanoids, Swiss watch maker Swatch is attempting to have the best of both worlds as it rolls out a partnership with Visa to bring Apply Watch-style contactless payment to its new line of analog timepieces.
Swatch announced the deal today, and the program will roll out early next year.
Samsung’s new phablets aren’t the only thing we got out of its Unpacked event in New York City today; the South Korean company also announced a launch date for its new mobile payments service. Samsung Pay will be coming to take on Apple Pay in the U.S. on September 28.
Apple wasn’t kidding when it said Apple Pay would transform mobile payments. Built around easy of use and security, Apple Pay is the industry’s first solution that benefits users and banks.
The security aspect of Apple Pay has been especially crucial to its early success, and now the big credit card companies have been spurred to follow suit. Today both Visa and MasterCard announced new security initiatives to protect against cyberattacks. Visa in particular has borrowed one of Apple Pay’s key ideas: tokenization.
Frequent Apple Store shoppers will love the company’s latest credit card partnership with Barclaycard and Visa. Like rewards cards from Amazon and others, you earn points when you spend that add up to free money.
“The Barclaycard Visa with Apple Rewards” card also offers special financing deals for new Apple product purchases.
Critics are fond of saying Apple doesn’t innovate any more. But Apple’s new electronic payment system, Apple Pay, is innovation of the highest order. After a relatively smooth rollout this week, I honestly believe Apple Pay is the future of payments.
Even so, Apple Pay must clear some big hurdles if it’s to become the universal standard. For now, it’s limited to Apple’s latest iPhones and a relatively small number of retail partners, but the basic system — using your fingerprint to validate a purchase on your mobile phone — is the way we will pay for goods and services in the future.
Once again, Apple has shown the world how things should be done.