I’ve just had a message from Pago:
At 9:30pm tonight pago will suspend all pago wallets. For info and to reactivate your wallet log on to the pago site after 10:30pm. Thank you.
I presume they’re about to make a fix to the system to improve the weak security issue.
New Zealand’s new Paypal-like system, Pago, has been criticised for being insecure. Based on a simple text message, users can send money to another mobile phone number or email address. The key issue is that there is only single-factor authentication, meaning if someone steals my phone, or spoofs my phone number, they can send money out of my account at will.
Update: No such luck. Security still remains poor. The update was to deal with some legal issues surrounding the fact that Pago was not a registered bank, but still dealt with money transactions. If I understand correctly, Pago is now a subsidiary of ASB Bank, rather than a separate company.