Consumers are having a hard time trusting the biggest names in digital and mobile payments – a consequence that hits the burgeoning eCommerce industry potentially the hardest.
Late last month, MasterCard and Visa were forced to confirm a significant security breach effecting 1.5 million credit card holders.
The underlying problem, however, was born of what many believe was a hacking job that targeted payment processing firm, Global Payments.
“We are making rapid progress toward bringing this issue to a close,” Global Payments chief executive Paul Garcia said following the confirmation of his company’s involvement in the mess at hand.
Within days, Visa dropped the vendor and MasterCard is expected to do the same at some point soon as a way to allay concerns from the general public that online shopping and the prospect of identity theft is too great to tempt needless exposure to such risk by patronizing online merchants.
“In addition to any potential consequences for consumers,” independent business analyst Mike Randazzo tells Mobile Marketing Watch on Thursday, “this really represents a setback for the mobile security, mobile payments, and eCommcerce industries. Consumer apprehension is the only thing stopping their unbridled growth today. And that’s where the impact from the Global Payments breach could be most resounding.”