Tag: mobile payments survey

Security is one of the primary reasons why consumers do not use their mobile devices to make payments.

A recent global study conducted by international e-commerce firm and digital payments platform, PayPal, has found that while the majority of consumers (78 percent) are in agreement that making payments online is simple, 42 percent of survey respondents are not interested in taking advantage of mobile payments, with the primary reason being consumers are worried about data security.

U.S. consumers feel more secure about sharing their financial information online than those in other countries.

Paypal surveyed more than 15,000 adults in 15 different countries to find out how people feel about online and mobile payments and how much time engaging in these transactions could save them in a cashless society.

The study found that compared to consumers in many other nations around the world, Americans were more comfortable sharing financial data online. PayPal’s senior director of global initiatives, Anju Nayar, said “The study shows that only 29 percent of the U.S. worries about sharing their data online, versus the global average of 59 percent, which shows how accustomed Americans have grown to the layers of security and the buyer protection companies like PayPal and others have built into the e-commerce experience.” It is because of these security and buyer protection measures that U.S. consumers feel comfortable, Nayar added.

Fear of payment information being stolen was the greatest online and mobile payments concern.

57 percent of survey participants in most countries said that the biggest frustration when it comes to online shopping is they are worried about theft of payment details. On the other hand, U.S. respondents (46 percent) were less concerned about their payment information being stolen than respondents of other nations. Also, while 29 percent of Americans are hesitant about data sharing on the net, this is a much lower percentage compared to the 59 percent global average.

In addition, the PayPal survey addressed the issue of using cashless payments when traveling. 85 percent of respondents said they would feel greater security if they could travel cash-free and 50 percent stated they would not be so worried about the possibility of money being lost or stolen.

That being said, although the survey may have revealed that on the whole, U.S. consumers may be less afraid of data theft compared to other countries, the global stats still show that consumers will not completely embrace mobile payments until they are confident their financial information is secure.

Personal data and how it is collected to cause problems for mobile payments

Data is extremely valuable in the mobile world. There are many kinds of data that can be considered valuable, from sales figures to marketing engagement, but the most important data in the mobile space is a consumer’s personal information. Typically, this information is considered private in the physical world, but is available in abundance online. Mobile payments, marketing, games, and a vast multitude of other mobile-centric activities collect this personal information for one purpose or another. Privacy is quickly becoming one of the most significant issues facing mobile consumers today.

Survey highlights consumer attitude concerning privacy

MEF, a global trade association, has released a new report entitled “Global Privacy Survey 2013.” The report highlights the attitude that consumers have regarding privacy and how their personal information may be being used in the mobile space. Data has helped the mobile world becomes more defined, providing developers with ways to create new, more intuitive mobile applications. Usually, these applications can either be purchased or attained for free, but a growing number of applications, especially those involving mobile payments, are beginning to exchange services for the acquisition of personal information.

Most consumers want to know how their data is being used

According to the survey, only 37% of consumers feel comfortable with sharing personal data with a mobile application. The majority of consumers consider knowing what kind of information an application is collecting to be important and 71% of consumers want to know how their information is being used. It is common for personal information to be sold to advertisers so that more targeted marketing campaigns can be fashioned. Mobile applications are not expressly required to inform consumers that their personal data is being collected in many countries around the world.

Mobile payments may not thrive if privacy is not addressed

Privacy is a major concern where mobile payments are concerned. Mobile commerce involves the trafficking of a consumer’s financial information, which, if stolen, can be exploited and cause significant monetary damage to a consumer. Mobile payments are becoming very popular among consumers, but if mobile commerce applications cannot become more secure, they may not have a future with consumers.