Consumers, Providers Not Seeing Eye to Eye on Mobile Wallet Security

There is a gap in the perception of mobile wallet security between consumers and businesses, according to preliminary results of a new survey. More than half of consumers believe mobile wallets are less secure than cash while more than 60 percent of businesses insist they are safe, said the report, commissioned by NTT DATA and Ingenico ePayments. Another source of disagreement is companies’ response to a consumer’s fraud loss. Nearly 75 percent of consumers say guarantees against monetary loss due to fraud would encourage them to use mobile payments, but only 44 percent of businesses currently offer or plan to offer such guarantees.

And, while monetary loss from fraud is a consumer concern, they are more worried about identity theft, the report said. As such, the data suggest consumers would be more comfortable using mobile payments secured with advanced biometric measures like facial and iris recognition while fewer than a third of providers have plans to move beyond passwords or finger scans.

“Fear is a powerful inhibitor, and fraud fear is top of mind for many consumers,” said Peter Olynick, senior practice lead for retail banking at NTT DATA Consulting. “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.”