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Report: UK consumers fear mobile wallet hacking

Monday, October 17, 2011

New research from Intersperience shows that a significant number of UK shoppers would not use mobile payment systems over fears of phone hacking.

In a poll of 1,000 UK adults, only 17% indicated that they would like to use their phone as a wallet in future, with 44% citing “a lack of security software” as their chief concern.


According to Intersperience, the recent celebrity phone hacking scandals have called mobile security into question for many prospective mobile wallet users, with one respondent saying, “After the recent phone hacking scandals it’s clear that mobiles can be hacked. I’d be worried criminals would learn to do it.”

Another 24% said they wouldn’t use the technology simply out of intuition, indicating that mobile payments “feel less secure but I don’t know why.”

A further 24% believe their mobile is more likely to be stolen than their wallet.

Paul Hudson, CEO of Intersperience, comments: “There is no doubt that the phone hacking scandals have unnerved consumers. We also detected a marked rise in security concerns when people use devices with mobile internet access compared to fixed access via PCs. These beliefs will impact the pace at which UK consumers adopt mobile payment systems.”

Hudson added that these beliefs are largely erroneous, as there are far higher instances of security breaches over PCs than mobiles.

Unsurprisingly, the younger generation emerged as the most eager to use mobile wallets, with 33% saying they would like to use the technology in the future. Furthermore, 25% of teenage respondents said they would adopt mobile payments over traditional methods.

“Today’s adults may be adopting a cautious stance on mobile payments, but we expect the next generation to be more enthusiastic,” concluded Hudson. “Digital Natives will be in the vanguard of mobile commerce.” [end] 

Auriemma Consulting Group is set to launch a comprehensive consumer study on the future of the mobile wallet.

The study comprises an overview of the current state of the UK mobile wallet space and attempts to answer “What comes next?” after launch. To determine the next stage of the mobile wallet, the study examines the features and benefits consumers expect on mobile wallets, and potential ways to expand the mobile wallets’ capabilities.

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Visa Europe has confirmed that its new digital wallet service, V.me, will launch to an initial group of consumers in the UK, Spain and France in fall 2012.

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American Express has announced that it is adding its Consumer, Open Small Business and Serve cards to the Isis Mobile Wallet platform.

American Express now joins Chase, Capitol One and BarclayCard in enabling its card holders to make NFC payments and collect rewards using an Isis-enabled mobile phone.

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The Canadian Imperial Bank of Commerce (CIBC) and mobile operator Rogers Communications are partnering to launch Canada’s first joint mobile payment solution, allowing Canadians to pay with their CIBC credit card at the point-of-sale using NFC-enabled smart phones.

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Lars Aase Permalink
October 18, 2011 5:38 AM

Easy to take away the consumer fear. Use a mobile wallet system/service that don't store sensitive data on the mobile and that don't communicate sensitive data when doing a transaction. Technology and services already exists.

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