Security concerns hold back mobile payment adoption
Businesses and consumers recognize the benefits of mobile payments, but worries over security are holding back adoption according to a new report.
The study by Oxford Economics interviewed 2,000 consumers and 300 business executives and finds that 62 percent of consumers say mobile money enhances their buying experience, and 72 percent of executives say mobile payments can boost their sales.
But despite this positive view traditional methods like cards and cash still dominate the payments landscape, with mobile accounting for under eight percent. The main factor holding back adoption is security.
When asked what's stopping them from using mobile payments, 70 percent of consumers worry about their personal details being stolen and 55 percent feel mobile money is less secure than a physical wallet.
74 percent of consumers say they would be more likely to use mobile money if fraud losses were covered. Biometric security measures are also something consumers want, 70 percent would like fingerprint scans or facial recognition, and 67 percent iris recognition. Executives are more traditional, however, with 64 percent backing traditional passwords and only 45 percent fingerprint scans.
"Business leaders need to better understand the cost and security benefits of mobile payment technology," conclude the report's authors. "They need to review their assumptions about consumers' payment preferences. They need to reassure their customers that mobile wallets come with the same indemnification as old-school credit cards, and with greater protection against theft. Finally, they need to harness the technology’s potential for delivering the security, convenience, and rewards that consumers have come to expect from a payment system."
You can download the full report and register for a Future of Money webinar on the Oxford Economics website. There's also a summary of key findings in an infographic below.