Security Concerns Seen Holding Back Mobile Wallet Adoption in the UK
by MarketingCharts staff
One-third of consumers in the UK surveyed by ICM Research claim that they would definitely or probably use their mobile as a wallet to make payments for everyday items. But that figure rises to 51% of respondents if their concerns about security could be allayed, implying that security fears are holding back further use of mobile wallets. As it turns out, consumers are willing to try an array of methods to increase their confidence in the security of mobile payments.
Those security measures include: a bank/mobile provider guaranteeing any financial losses (56%); entering a PIN with every transaction (43%) or after a number of transactions (37%); being able to shut the mobile down remotely (40%); setting a daily spending cap (34%); and facial (33%) or voice (24%) recognition on the mobile device.
Interestingly, though, allaying security concerns isn’t the only potential driver of increased adoption. The study also found that 51% of respondents would use a mobile wallet if they were to get a discount for doing so, suggesting that for some consumers, value trumps security.
The ICM study comes on the heels of survey results from Chetan Sharma, in which mobile industry experts tabbed mobile payments as the top breakthrough category in mobile this year.
According to the ICM study, smartphone owners are more likely than the average respondent to be open to using their mobile as a wallet (46% vs. 34%).
Among smartphone owners, 18-24-year-olds (55%) and 25-34-year-olds (49%) are more likely than the average to be interested in using a mobile wallet.
While 80% of consumers surveyed were aware of contactless payments, only 8% had made such a transaction.
About the Data: The ICM Research is based on a representative online survey of 2,015 consumers run between November 30 and December 2, 2012.
The Chetan Sharma study interviewed 200 executives, developers and insiders from leading mobile companies and startups from across the value chain and from around the world.