With cloud computing, mobile payments can be more secure, says Prashanth Ranganathan, director of mobile security and risk for PayPal. In a guest post on Forbes, Ranganathan writes that mobile payments managed correctly can actually increase the security of information from plastic credit and debit cards.

"The 'digital wallet' approach relies on the inherent security of the cloud," Ranganathan writes. "This is where a consumer’s financial information lives, not on their phone. They can access their 'wallet' anytime, anywhere, no matter what device they’re using, and they never have to worry when they switch devices or upgrade phones. Even if the phone is lost or stolen there’s no need to worry. Of course, we always recommend that our customers protect their phones with a PIN as a first line of defense."

Ranganathan said to look at it this way: If a phone is stolen and all the financial information is on the device, it would be impossible to tell who was making the purchases. With the information stored in the cloud, the information would be monitored, allowing companies and consumers to better track fraudulent actions.

An article on GCN said open-source cloud computing software can give any type of company or system greater protections from an unauthorized infiltration, as it allows companies to draw from a greater pool of security if there was a cyber attack or hacking.