Future of Payments
88 per cent of consumers would stop using digital payments after a breach
19 October 2016 |
Nearly nine in ten consumers would stop using digital payments if they suffered a cyber breach, according to a report.
In a survey by Thales e-Security and Wakefield, 88 per cent of Americans said they would stop using the services if they personally fell victim to cyber criminal activity.
70 per cent said they would stop if money was stolen from a linked bank account, while 68 per cent said they would stop if unauthorised charges appeared on a credit card.
59 per cent said they cease using digital payments if a username or password was stolen, while 30 per cent said they would stop if they saw an increase in spam emails.
40 per cent said they would not feel safe using digital payments while travelling.
“It’s easy to see why mobile payments continue to grow in popularity – they are fast and convenient,” said Jose Diaz, director of payment strategy at Thales e-Security.
“But the results of the survey showed that people have strong doubts about their safety, especially while travelling. The mobile payments industry needs to take note that their future success is based on trust. And that trust can easily fail if they do not provide the strong protection of their infrastructure, transactions and data that customers expect.”
According to the survey, 60 per cent of consumers currently use a form of digital payment, including half of baby boomers and 74 per cent of millennials.
The most popular digital payment service is PayPal, which is used by 51 per cent, followed by Apple Pay at 11 per cent, Google Wallet at seven per cent, Android Pay and Chase Pay at six per cent, Samsung Pay at five per cent and Venmo at three per cent.
Financial firms are beginning to bring biometric security to online payments, with Mastercard recently introducing selfie and fingerprint systems to protect its customers.
For more on the survey, see the Vormetric website.