June 7, 2018
The excitement surrounding frictionless payments—pioneered by sharing apps like Uber, but also including voice-enabled payments through digital assistants and just-walk-out store technology like the Amazon Go concept—makes them seem inevitable. Consumer concerns about security, however, could make adoption slower than expected according to new research from payment provider Paysafe.
While their convenience is unparalleled, the research found that consumers continue to associate these kinds of payments with a lack of security. Half of those polled in the Lost in Transaction 2018 survey will not use them because they have concerns with fraud. Nearly 70 percent worry that voice-activated systems like the Amazon Echo or Google Home Assistant will overcharge them when they make purchases. And, 57 percent think that stores using just-walk-out technology are too risky.
“There are more challenges to tackle with low-friction payment technologies as these findings suggest many consumers aren’t ready to lose visibility of the payment process,” said Todd Linden, CEO of Paysafe. “It’s clear that the benefits are not unilaterally agreed upon, with cultural and infrastructure trends at play, and it may be some time before adoption is widespread. Even though the average American only carries $42 with them, [cash is] still the most popular method of payment and merchants need to balance their range of payment options to ensure they are plugging into consumer demand.”