This is why online commerce has been damaged by fraud, the effects this has had on consumer’s subsequent decisions about transacting online, and the level of trust consumers have in online commerce. The results indicate that favoring speed and convenience over visible security measures, could be a costly mistake for businesses.
Research by MYPINPAD highlights the need for banks, retail, payment and card schemes to strike a better balance between user experience and security. For many consumers loyalty and a great experience entails tangible security. Multi-factor authentication and transparency are key to winning consumer trust.
Consumers do not believe transaction speed is more important than security. They want to see multi-factor authentication implemented.
When asked what could be done to improve the trust consumers have in them:
• 40% of respondents would like to use cardholder PIN as a means of authenticating an online transaction
• 50% would like to use a combination of both PIN and biometrics
• Only 2% of consumers believe transaction speed is more important than security
Why is this?
Consumers have huge concerns about fraud:
• Over two-thirds of respondents, 67%, are concerned about their online banking and shopping security, with one in four respondents being ‘very concerned’
• Just under one in three of our survey respondents said they have been a victim of online fraud
Trust is being harmed and this is impacting on consumers’ behavior:
• 61% stated information about data breaches and online fraud has impacted their trust of online shopping and banking
• As a result, 11% shop less and almost one in 10 said they do not use mobile devices to carry out transactions