Fraud is much less likely here than on PayPal, for example, for multiple reasons:
a- Card present. Chances of fraud when the card is swiped are much lower than when it isn't (for obvious reasons).
b- Signature. This lets you have a basic form of authentication for the user after the fact (oh, didn't make this purchase? Why is this your signature?)
c- Location. Each purchase is tagged with the GPS coordinates from the phone.
d- If need be, pictures. You could always snap a quick photo of the cardholder if the transaction comes up as a serious fraud risk.
Yes, there are still risks of the person skimming your card info, or stealing your CC number another way, but these are risks present in the entire credit card system.
It's certainly much safer than PayPal, and they're doing alright.
a- Card present. Chances of fraud when the card is swiped are much lower than when it isn't (for obvious reasons). b- Signature. This lets you have a basic form of authentication for the user after the fact (oh, didn't make this purchase? Why is this your signature?) c- Location. Each purchase is tagged with the GPS coordinates from the phone. d- If need be, pictures. You could always snap a quick photo of the cardholder if the transaction comes up as a serious fraud risk.
Yes, there are still risks of the person skimming your card info, or stealing your CC number another way, but these are risks present in the entire credit card system.
It's certainly much safer than PayPal, and they're doing alright.