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Mobile Payments are on the Rise, but How Safe are They?

CBS News, By Chenda Ngak

In today’s wired world, buying a cup of coffee no longer requires pulling out your wallet. Instead, you can use your smartphone. Companies have developed a variety of approaches to mobile payments.

Smartphone owners in the U.S. bought $500 million worth of goods and services using mobile wallet apps in 2012. It’s predicted that number will explode to $35 billion by 2017.

Mobile apps like Square Wallet use your phone’s GPS to let a store know you've arrived. Tell the cashier your name, your picture pops up on their screen, and the money for your purchase is deducted from your bank account.

Venmo, a startup owned by PayPal, is another mobile payment app that’s gaining traction. Venmo, and competitors like Square Cash, let friends exchange cash via email. Read more.