With the launch of Apple Pay and Android Pay, mobile payments are quickly becoming the more convenient way to pay for things, and while authorising these payments with fingerprint sensor technology adds one level of fraud prevention, consumers believe that banks and merchants aren’t doing their bit to protect against fraud and theft. Because of this, adoption for mobile payments are somewhat being held back.
According to Research for NTT DATA and Ingenico ePayments by Oxford Economics and Charney Research, consumers feel that banks and merchants aren’t doing enough to take into account consumers’ fears on fraud and theft. The survey found that more than half of consumers believe mobile wallets are less secure than cash. A stark contrast when nearly 60 percent of executives say that mobile money will build their business because it’s safe.
The main issue we have here is that while both consumers in developed and developing countries are keen to adopt the use of mobile money, in fact 60 percent of consumers agree that mobile money enhances their purchase experience, there are still fears that using such means could lead to their identities being stolen.
“Fear is a powerful inhibitor, and fraud fear is top of mind for many consumers,” says Peter Olynick, senior practice lead, Retail Banking, NTT DATA Consulting, Inc. “Consumers are not just worried about losing one or two transactions, they fear having their identity stolen. If financial institutions can mitigate those fears and improve merchant adoption for mobile, we will see consumer adoption rates begin to accelerate.”
We’ve already heard how contactless payments are susceptible to theft without even removing cards from our wallets, and while mobile payments are much more secure due to needing some sort of authorisation from the user, be it a pass code or biometrics, it seems consumers want companies to do more to ensure that mobile transactions are safer.
The survey also revealed that 75 percent of consumers say guarantees against monetary fraud would encourage them to use mobile payments, but only 44 percent of businesses currently offer or plan to offer such guarantees. In fact, fewer than a third of companies globally currently use or plan to use biometrics like face, voice and iris recognition to secure mobile devices, according to the survey.
The full report, titled “The Future of Money,” will be published in January 2017.
What are your thoughts on mobile payments? Do you use Apple or Android Pay? If so, do you feel that those transactions are secure?