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Consumers Love Mobile Wallets — But Fraud Fear is a Powerful Inhibitor

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Concerns about fraud and theft risks are inhibiting adoption of mobile wallets, but businesses underestimate the problem.

A survey, from NTT Data found more than half of consumers believe mobile wallets are less secure than cash—yet nearly 60% of executives say mobile money will build their business because it’s safe. 

NTT says fear is a powerful inhibitor, and fraud fear is top of mind for many consumers.

Other important findings from the study include:

Consumers around the world understand the benefits of mobile money

• 60% of consumers agree that mobile money enhances their purchase experience

• 50% say mobile money drives loyalty to their financial institution or online merchant

Security concerns are undermining mobile payments

• More than half of consumers believe mobile wallets are less secure than cash

• Nearly 75% of consumers say guarantees against monetary fraud would encourage them to use mobile payments, but only 44% of businesses currently offer or plan to offer such guarantees

• Only 25% of consumers say online and mobile transactions are the safest form of transaction

Companies need to step up security authentication

• Consumer appetite for sophisticated biometric features like facial and iris recognition is strong. However, most businesses continue to rely on traditional passwords and finger scans

• Fewer than a third of companies globally currently use or plan to use biometrics like face, voice and iris recognition to secure mobile devices

• Security-focused consumers prefer multi-step authentication for mobile payments (German and Scandinavian consumers, who trust passwords most, are the exceptions)

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