Around 8 in 10 respondents in a survey said they are wary of mobile payments.
As we note in our report on The Future of Payments & Currency, concerns about security and privacy may prove to be stumbling blocks when it comes to adopting new ways to pay. Across generations, around 8 in 10 respondents in a survey we conducted in the U.S. and U.K. said they would prefer sticking with cash, debit and credit cards so they don’t have to worry about security and privacy issues. And significant percentages are very concerned about potential fraud when it comes to new forms of currency or mobile-enabled payments, as shown in this chart.
Respondents were most likely to express concern about virtual currencies like bitcoin, but around 4 in 10 were also concerned about fraud around the mobile wallet, whether via tap-to-pay methods or in-app payments. By contrast, only about a fifth of respondents expressed concern with established forms of payment like bank cards or automatic payments linked to bank/credit info (not pictured in chart). Our survey of 1,000 adults was conducted in July using SONAR™, JWT’s proprietary online tool.
This discrepancy isn’t entirely logical: Deborah Baxley, a payments expert at Capgemini who talked to us for the report, noted that mobile payments are much more secure than the magnetic-stripe technology currently used in the U.S. “It’s ridiculous how unsecure our mag stripe infrastructure is,” she said, pointing out that stolen phones can be disabled, unlike credit cards. Brands implementing mobile payment will need to provide both exceptional security and privacy but also focus on how to help consumers understand the real advantages of these payment methods.