March 10, 2017 -
Oxford Economics released a study titled “The Future of Money: How digital payments are changing global commerce”, which finds that both consumers and business executives want biometric security measures when using payment methods, according to a report by betanews.
The report, for which Oxford Economics interviewed 2,000 consumers and 300 business executives, finds that 70 percent of consumers would like fingerprint scans or facial recognition, and 67 percent iris recognition.
Business executives tend to be more traditional, with 64 percent of respondents implementing traditional passwords and only 45 percent offering fingerprint scans.
In addition, 62 percent of consumers say mobile money improves their buying experience, while 72 percent of executives say mobile payments can increase their sales.
Despite this positive view of mobile payments, more traditional methods like cards and cash continue to dominate the payments space, with mobile accounting for under eight percent.
The report finds that while consumers and businesses recognize the benefits of mobile payments, their security concerns regarding the month are preventing them from adoption.
Seventy percent of consumers say they are concerned about their personal details being stolen and 55 percent say they believe mobile money is less secure than a physical wallet.
The reports also finds that 74 percent of consumers say they would be more likely to use mobile money if fraud losses were covered.
“Business leaders need to better understand the cost and security benefits of mobile payment technology,” the report’s authors said. “They need to review their assumptions about consumers’ payment preferences. They need to reassure their customers that mobile wallets come with the same indemnification as old-school credit cards, and with greater protection against theft. Finally, they need to harness the technology’s potential for delivering the security, convenience, and rewards that consumers have come to expect from a payment system.”
Previously reported, Mastercard released its fifth annual Mastercard Digital Payments Study, which found that 43 percent of social media users expressed interest in biometrics and other forms of authentication to deliver improved security, lower fraud and move beyond traditional passwords.