Results of MYPINPAD’sConsumer Trust and Mobile Payments Growth survey show financial institutions best not sacrifice security in the name of speed.
Only two per cent of consumers believe a transaction’s speed takes priority over its security. Forty per cent would like to use their cardholder PIN to authenticate a transaction while 50 per cent want a PIN/biometric combination.
Consumers want that extra protection because they have real concerns about fraud. Two out of three say they are concerned about their online banking and shopping security while 25 per cent say they are very concerned. Just under one out of three people said they have been victimized by online fraudsters.
This has trust impacts, as 61 per cent said news reports of data breaches and fraud have impacted their trust of online finance and commerce. One in nine shop less and close to one in 10 say they do not use mobiles to transact.
“The latest UK government figures show 90 per cent of large businesses and 74 per cent of SMEs have suffered a security breach,” MYPINPAD business development director David Poole said. “Increasing confidence is not just about preventing fraudulent transactions – it is also about boosting the number of successful transactions. There needs to be a consistent and convenient way for consumers to authenticate themselves for online transactions.
“This research highlights the need for banks, retail, payment and card schemes to strike a better balance between user experience and security. Consumers are well informed about the risks of transacting online and on mobile. For many, loyalty and a great experience entails peace of mind and tangible security. Multi-factor authentication and transparency around appropriate security practices are key to winning consumer trust.”