MYPINPAD, an enabler of multi-factor authentication for touchscreen devices, such as smartphones and tablets, has launched the initial findings from its exclusive survey: Consumer Trust and Mobile Payments Growth.
The unique research explores how and why online commerce has been damaged by fraud, the effects this has had on consumer’s subsequent decisions about transacting online, and the level of trust consumers have in online commerce. The results indicate that favouring speed and convenience over visible security measures, could be a costly mistake for businesses.
David Poole, Business Development Director at MYPINPAD, said: “The latest UK government figures show 90% of large businesses and 74% of SMEs have suffered a security breach. Increasing confidence is not just about preventing fraudulent transactions – it is also about boosting the number of successful transactions. There needs to be a consistent and convenient way for consumers to authenticate themselves for online transactions.”
“This research highlights the need for banks, retail, payment and card schemes to strike a better balance between user experience and security. Consumers are well informed about the risks of transacting online and on mobile. For many, loyalty and a great experience entails peace of mind and tangible security. Multi-factor authentication and transparency around appropriate security practices are key to winning consumer trust.”
Consumers do not believe transaction speed is more important than security. They want to see multi-factor authentication implemented.
When asked what online retailers could do to improve the trust consumers have in them:
Why is this?
Consumers have huge concerns about fraud:
Trust is being harmed and this is impacting on consumers’ behaviour:
This survey is the second in a series and a central piece of research for anyone looking to understand the dynamics around consumer trust. It explores what retailers, banks and payments processors could do to retain customer trust, specifically in terms of security, authentication, and the opportunities for those who capitalise it.