Tag: mobile payments security

Security concerns continue to plague the mobile payments space

GfK report highlights worries over the security of new payment services

Security is still a major concern for consumers that are interested in mobile payments. While mobile transactions account for only a small portion of commerce overall, they are becoming more popular among consumers throughout the world. While this popularity is growing, consumers are still concerned how new payment platforms will protect their financial information. According to a new report from GfK, a prominent market research firm, these security concerns could slow the adoption of mobile commerce among consumers.

Few consumers are comfortable with the security offered by mobile commerce platforms

According to the report from GfK, mobile payments only account for 3% of all transactions being made in the United States. The majority of consumers prefer to use their debit cards to pay for goods and services. Not only are consumers more comfortable with conventional payment solutions, they also believe that mobile payments services are not secure enough. Approximately 52% of consumers believe that new payment services are not able to keep their personal information secure. Only 16% believe that mobile commerce services are more secure that more conventional forms of payment.

More companies are working to improve the security of mobile payments services

Mobile Payments SecuritySecurity concerns are nothing new for the mobile commerce industry. Over the past several years, consumers have expressed their worry that new payment services were simply not able to protect their information. The companies responsible for these services have been working to make them more secure, with many now making use of biometric technology. This technology leverages biological information to protect payment services. Consumers can protect their information with something as simple as a fingerprint, which has done much to secure confidence in mobile commerce among consumers.

Younger consumers are less concerned about security and privacy issues

Notably, younger consumers, those between the ages of 18 and 24, are less concerned about security and privacy issues. Approximately 33% of these consumers say they are completely confident in the security of mobile payments services. They believe that new payment services are not only secure, but also very convenient and allow them to shop and purchase products no matter where they may be without having to rely on traditional forms of commerce.

Visa Europe to expand tokenization in support of mobile payments

Visa Europe will be expanding its innovative tokenization service to support cloud-based transactions

Visa Europe is expanding its tokenization service to support cloud-based transactions coming from the mobile payments platforms that banks are using. The organization is responding to growing demand for payment support for mobile devices throughout Europe. Many consumers are beginning to rely on their mobile devices to shop online and in physical stores, which they consider to be more convenient than conventional forms of commerce. They also want to ensure that the services they are using are secure, which is where tokenization comes into play.

Tokenization has helped consumers become more comfortable with the concept of mobile commerce

Tokenization allows mobile payments to be made securely. Through a typical payment system, financial information is transferred digitally, allowing consumers to make payments online. Tokenization replaces this information with digital tokens, which can be used to authenticate transactions. These tokens are unique for every transaction, ensuring that consumer information is kept safe. Visa has become a pioneer in tokenization, which has helped consumers become more confident in the security of mobile commerce.

Half of all Visa transactions expected to come from mobile devices by 2020

Mobile Payments Security - VisaThe expansion of the Visa Europe Payment Tokenization Service will allow banks and other organizations to take advantage of tokenization. By 2020, Visa Europe predicts that one in five consumers will pay for products using their smartphones and other devices on a daily basis. Mobile will account for 50% of all Visa transactions made by that time, which has highlighted the need for secure services. Security is a top priority for banks, especially as consumers become more mobile-centric.

Embracing tokenization could allow retailers to find more success in mobile shopping

Visa Europe’s tokenization system will allow more merchants to enter into the mobile payments ecosystem. This is good news for retailers, as they can find major success by engaging mobile consumers. If they can provide secure services, they will have a better chance of connecting with consumers and providing them with an enjoyable and safe shopping experience. Visa has managed to improve the mobile commerce space significantly through its tokenization service, which has been praised by retailers and financial institutions.