Because of layers of security, mobile payment methods may actually be more secure than traditional models in some respects, Jeremy Allaire, co-founder and CEO at Circle, told CNBC's "Squawk Alley" on Wednesday.
"We need a more resilient model for payments, where I don't have to transmit my bank account credentials to everyone I want to send a payment to," Allaire said. "New mobile-payment based models are, in some ways, more secure. Because in a model like Circle's, for example, we never transmit your personal information or your financial credentials to the people you're paying."
Allaire's comments came amid the Cambridge Cyber Summit, an event co-sponsored by CNBC, MIT and The Aspen Institute that focused on challenges in cybersecurity. Circle is a start-up that makes secure, simple and less costly technology for storing and using money.
A study last year from Walker Sands Communications found that security and privacy were the main reasons that consumers were hesitant to use mobile payment options. But Allaire said options like biometric scans of finger prints or irises provide an added layer of security on mobile.
"I do think that the existing payment methods, like the traditional card models — there's a lot of risk in that," Allaire said. "You're essentially giving out the keys to your bank account to everyone you do business with."
The conference is sponsored by CNBC, MIT and The Aspen Institute.
