CNP Expo: Study Finds Mobile is Now…For Some
May 22, 2013
Day 2 of the 2013 CNP Expo began with an in-depth look at new research on mobile commerce and fraud. David Montague, president of antifraud consultancy The Fraud Practice, presented the results of the Mobile Survey 2012 undertaken by his company, antifraud solutions provider Kount and CardNotPresent.com. Montague emphasized that the report was a look at what the payments ecosystem was doing with mobile now.
“At the end of the CNP Expo last year, we kept hearing about mobile. How it’s coming and it’s going to be huge,” Montague said. “But when you talk to merchants and service providers, nobody is really sure what it is and what’s going to happen. We got together and said we need more information to come up with when we should really be paying attention to mobile. What should we do?”
Overall, respondents believe mobile revenue will grow substantially, but projections about how much and how they are addressing fraud in the channel vary substantially. The survey found that, while the vast majority said only five percent of their business comes through the mobile channel, they expect that to change quickly. Even as early as next year, nearly a third of businesses predicted that up to 20 percent of their sales will come through mobile transactions.
“That’s the big-picture takeaway. Over the next two years, the amount of revenue mobile will influence in your organization will quadruple,” he said. “Is that a big deal? Yes. That is a really big deal. It’s a huge statement when you have more than 400 respondents all basically showing a distinct pattern in what they expect.”
Survey respondents also said they expect mobile to be no riskier, from a fraud perspective, than traditional e-commerce. This was true for merchants polled and service providers. Montague, however, thinks the marketplace is underestimating the risk of the channel.
“I think mobile, as it is today, is far riskier,” he said. “I think we have some education that needs to occur. There are things we can do to make it less risky, but the mobile device, in and of itself, is very insecure. For example, one survey showed 30 percent of iPhone users use one of seven combinations to access their device.”
For many of the questions it asked, the survey found significant variability among different merchant verticals.
“For some verticals, if you’re not doing mobile you might be at a competitive disadvantage today. We do a lot of detailed breakouts by different verticals so you can see how important mobile is for your particular industry. In the apparel industry, for example, online shopping form the mobile platform is happening today.”
The report is available for free. Download it here .