Many consumers worry about using their phone as a mobile wallet due to security concerns even though it’s as safe as other payment systems currently in use, a new survey said.
A survey from Gemalto also said 46% of respondents were concerned that somebody would run up huge bills if their NFC phone was lost or stolen, despite technology already in place preventing misuse and certified by financial institutions. Only 32% of interviewees have heard of or understand what NFC is, the survey said.
The UK survey of over 2,000 mobile phone users also found that only 32% of consumers know what NFC stands for, and a large number expressed security concerns about using a mobile wallet. This highlights the gap between consumer perception and the reality of the secure nature of mobile contactless payment technologies.
When asked if they have ever used or would use their phone as a mobile wallet, 34% of respondents said they didn’t or wouldn’t due to security concerns, 31% weren’t aware they could even do it and almost a quarter (24 %) said they didn’t trust it as they didn’t fully understand how it works.
The research results show a clear need for further consumer education to dispel the myths surrounding mobile payments using NFC. Similarly to when ATMs, chip-and-PIN and e-commerce were introduced, consumers will need to build trust and become accustomed to mobile NFC by using the technology to learn how it works.