Concerns about fraud and theft risks are inhibiting adoption of mobile wallets, but businesses underestimate the problem. The survey found more than half of consumers believe mobile wallets are less secure than cash—yet nearly 60 percent of executives say mobile money will build their business because it’s safe.
In August 2016, NTT DATA, Ingenico, Oxford, and Charney surveyed 2,000 global consumers and 300 companies worldwide to investigate sentiments, expectations and concerns about the future of money. Our study showed customers in developed and developing countries alike are interested in using mobile money, but companies must do more to ease their security concerns if adoption is to become widespread.
“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.”
Consumers around the world understand the benefits of mobile money
- 60 percent of consumers agree that mobile money enhances their purchase experience
- 50 percent say mobile money drives loyalty to their financial institution or online merchant.
Security concerns are undermining mobile payments
- More than half of consumers believe mobile wallets are less secure than cash
- Nearly 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
- Only 25 percent of consumers say online and mobile transactions are the safest form of transaction.
Companies need to step up security authentication
- Consumer appetite for sophisticated biometric features like facial and iris recognition is strong. However, most businesses continue to rely on traditional passwords and finger scans
- Fewer than a third of companies globally currently use or plan to use biometrics like face, voice and iris recognition to secure mobile devices
- Security-focused consumers prefer multi-step authentication for mobile payments (German and Scandinavian consumers, who trust passwords most, are the exceptions).