Joshua Peters (D) from Missouri's state House of Representatives thinks smartphone-based payment systems like Apple Pay aren't secure enough, so users should be required to show a photo ID when using their iPhone to make credit card payments in stores. He's so sure of this that he presented bill on Wednesday that would require Missouri retailers to check photo IDs when making smartphone-based payments.
Missouri law would require ID along with Apple Pay transactions
Mr. Peters said requiring a photo ID when using an iPhone or other smartphone to pay for goods and services will prevent credit card fraud if the device is lost or stolen, according to the KMBC News. Retailers would also be responsible for recording the ID number to avoid being held responsible for fraudulent purchases.
The bill, should it become state law, would kill one of the big conveniences of Apple Pay, Google Wallet, and other smartphone-based transaction systems because shoppers would still have to pull a card out of their pocket or purse to show to retailers. Once shoppers are faced with that requirement, they'll likely just use their credit card instead, which has the added bonus of being far less secure than NFC-based wireless transactions from smartphones.
Requiring retailers to log ID numbers brings in a new security issue, too, in that they're responsible for maintaining a list that could be stolen and used for identity theft or other fraudulent activities.
Since card numbers aren't handed off when processing smartphone credit card transactions, they less susceptible to being stolen. The transactions also require some form of authentication, like Apple's Touch ID, which helps reduce the threat of fraud even more. Requiring shoppers to show an ID when making purchases won't likely do much to reduce the risk of fraud, and may be a deterrent to using smartphone-based transactions all together.
Mr. Peters presented his bill to Missouri lawmakers on Wednesday, so it still has a long way to go before it could be voted in as law. Hopefully it will quietly disappear before it has a chance to push iPhone and Android phone users away from trying out wireless payments.