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The Central Bank of Iran is developing new mobile payment systems so people may use their smartphones or watches for making purchases
Hakimi noted that this process is far more secure than bank cards, since digital payments like tap-and-go has three security layers. First, users need to unlock their phones, then enter the application's security code and finally the card's password. This is to ensure that even if someone's phone is lost, it wouldn’t cause much worry since the data is safe and the application could be recovered on a new phone.
NFC is a short-range wireless connectivity standard that uses magnetic field induction to enable communication between devices when they’re touched together, or brought within a few centimeters of each other.
The banks will virtualize the card with security measures inside the app such that to make a payment, one only needs to activate the application and bring the phone close to POS terminals
Mobile wallet has greatly reduced the concern of the people to share their personal information about their financial accounts to third party merchants as they no longer have to share their account details or debit/credit card details while transacting as the money is previously available in the mobile wallet and one has to just transfer the money to the given merchant.
Mobile payments have significantly reduced the likelihood of fraudulent POS transactions, by using unique data to authenticate the payment device in every transaction.
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