Barclaycard's security chief has claimed that its newly unveiled PayTag system generates less data than standard chip and pin transactions, offering a stronger level of security to users.
"Barclaycard servers store less data on PayTag purchases than regular payments," Barclaycard head of payment security Neira Jones told V3.
Though Jones didn't clarify what data is recorded, the fact that the service doesn't store as much information adds another layer of protection to customers from cyber criminals.
As demonstrated by the infamous July 2008 cyber attack on CitiBank, customer data stored on financial services' networks is incredibly valuable and is a commonly targeted by hackers.
The fact that less data is stored during PayTag purchases could help to reduce the risk by making it less valuable and useful to online crooks.
As well as storing less data Jones also said that PayTag offers all the same security as standard wireless contact card payments, meaning that if lost, the bank will reimburse consumers for any fraudulent transactions.
Barclaycard unveiled the PayTag technology this week. The system works by letting customers place a plastic tag on the back of their phone to make payments.
The attachment acts as an extension to Barclaycard customers' card accounts, allowing them to make payments of up to £15 - a figure set to rise to £20 in June.
The technology, which is compatible with all regular wireless payment terminals, is currently being offered to a select number of Barclaycard customers, with a wider rollout being forecast later this year.
For a look at the PayTag technology in action check out V3's video demonstration.
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