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New Survey Shows Customers Still Don’t Trust Mobile Payment Security

Tuesday, April 14th, 2015

The mobile payment industry continues to grow at an astonishing pace. As per Forrester Research, mobile payments are set to account for as much as $142 billion worth of transactions by 2019, a significant upside from $52 billion worth of payments that happened through the medium in 2014. However, despite cutting-edge innovations in the industry and introduction of new solutions like Apple Pay, a large majority of consumers still do not trust the security features available with current mobile systems. This was revealed during a survey conducted by Tripwire Inc. which is a major provider of security and automation solutions. The survey was designed to evaluate security awareness among shoppers during the holiday period and the company targeted more than 2000 consumers from United States and United Kingdom as a part of the exercise.

As per the results published by Tripwire, a whopping 60 percent of American consumers considered cash as the safest method of payment while shopping in a department store (the figure for U.K. was just under 40 percent). Amongst the rest, less than 20 percent of American participants thought that credit cards were a secure medium of payment (40 percent for U.K.) while just over 10 percent voted in favor of debit cards (15 percent for U.K.). However, the most shocking statistic revealed by the survey was that only one percent of the overall participants considered mobile payment systems like Apple Pay to be secure enough to be used as an in-store mode of payment.

The survey also shows that consumers are now a lot more comfortable while shopping online. Amongst the survey participants, as many as 40 percent said that using third party payment processors (like PayPal and Google Wallet) is the safest way to pay while making a purchase through e-commerce stores. A lot of participants even preferred these third party payment services over other payment methods such as debit and credit cards.

The survey also throws a light on security awareness among online shoppers. Among the most notable findings, just 47 percent of US consumers (15 percent for U.K.) checked the URL to see if the webpage is using SSL to secure the transaction, 26 percent Americans believed that using a wired connection will make online transactions more secure, 53 percent of participants from U.K. thought that making payments through credit cards is the most secure way of making payments online (as opposed to 37 percent from U.S.) while a big majority (62 percent) of respondents thought that the presence of a lock icon makes their online transactions secure. Tripwire’s CEO Dwayne Melancon noted that owing to a large number of security breaches that have occurred at departmental stores recently (such as at Target and Home Depot), consumers now seem to be more comfortable while shopping online.

Tripwire’s survey clearly shows that there is still a long way to go before consumers start trusting mobile payment systems. While service providers like Apple and Google are introducing new features in their mobile payment products, they need to do a lot more on the security front to make these products the preferred medium of payment at commercial establishments.

April 14, 2015

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