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