PayPal Slams Apple’s Security Record

As PayPal girds up to go after a big new rival in the online payment arena, itEUs doing so by taking shots at that competitorEUs security track record. Not long after Apple unveiled Apple Pay, its new contactless payment system, PayPal took out a newspaper advertisement slamming the new service.

Apple Pay, suggests the ad, is no more safe than a selfie in the iCloud, making reference to the service's recent security breach that enabled hackers to leak nude celebrity photos.

PayPal took out the full-page ad on Monday in The New York Times, San Francisco Chronicle and USA Today. The ad reads in part: "We the people want our money safer than our selfies. PayPal protecting the peopleEUs economy." The advertising copy is being widely interpreted as a jab at the security of Apple systems, implying that the security of the new Apple Pay service might also be iffy.

The implicit message in the PayPal ad is: If Apple canEUt be trusted with photos, can it be trusted with credit card numbers? The difference, though, according to several tech media sources: Apple PayEUs tokenization system apparently doesnEUt store usersEU credit card numbers locally or online once their cards are scanned, theoretically making Apple Pay more secure than physical credit cards.

A Safer System?

For those reasons, Apple seems confident of Apple Pay's security. Instead of using credit card details, the system employs Touch ID and produces a unique 16-digit code for each transaction.

"Apple doesn't save your transaction information. With Apple Pay, your payments are private. Apple doesn't store the details of your transactions so they can't be tied back to you. Your most recent purchases are kept in Passbook for your convenience, but that's as far as it goes," according to Apple.

Growing Feud

This isn't the first time PayPal has tried to take a...

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