As the industry continues to grow and more people consider the use of the services, concerns increase.
Consumers and mobile payments service providers, alike, are expecting this technology to have a considerable impact on the way that business is conducted and products are purchased, but at the same time, there remain a number of concerns that are keeping people from actually using it, quite yet.
There is still growth in in-store purchase, paid bills, and money transfers through smartphone transactions.
At the same time, many experts who are examining this new technology and what mobile payments are doing in the industry say that there are many questions that remain about its privacy and security. This is holding back its progress to a considerable degree as consumers simply don’t trust it enough to feel safe and confident in its use, so far.
At the same time, mobile payments industry execs are saying that the technology is already good and is improving.
Though consumers are hearing that message, they seem to be willing to wait for those improvements to be implemented before they actually put it into use. At the same time, experts in security are also pointing out that the rapid growth of the use of smartphones for mobile payments is also attracting the attention of those who would use it for fraud.
It is precisely this worry that has consumers stepping back and either using the device less than they otherwise would for mobile payments, or simply choosing not to use it at all until they feel that the risks have dropped.
According to a Dallas based organization called NQ Mobile, a company that offers smartphone security software, it witnessed a growth of over 65,000 new malware threats released around the world, last year. This was a massive increase over the 24,000 new threats that were introduced in 2011. This type of issue can cause unsuspecting device users to head to sites where they reveal their financial data so that it can be stolen and used by unethical third parties.
According to Gavin Kim, the company’s chief commercial officer, “It’s a real problem, and it is growing.” Security will clearly be a key issue to overcome before mobile payments can truly take off.
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.
