Lack of security is putting UK consumers off adopting mobile payment apps

AF_mobile_PayRecent research commissioned by Wirecard AG has found that whilst UK consumers are ready to embrace mobile payment apps, they are put off by security concerns and are looking for an offering which has a greater focus on anti-fraud measures. The survey has identified key areas that mobile payment apps need to improve on, in order to encourage more UK consumers to use it as a payment method.

When looking at what benefits would encourage them to use a mobile payment app, almost half of respondents (48%) indicated that they would prefer an app with an increased focus on security and fraud prevention. Other areas included features such as a smooth and fast sign-up process (34%), and product discounts or coupon offers which could be redeemed through the payment app (34%).

Other key findings from the research include:

  • Southampton has the greatest adoption of mobile payment apps, whilst London lags behind
    The survey results showed that mobile payment adoption was greatest in Southampton (40% of respondents were using mobile app payments) and Glasgow (39%). Whilst you might expect London to be at the forefront, the capital sits alongside Bristol, Edinburgh, Liverpool and Manchester at 32%. Respondents from Leeds, Birmingham and Newcastle had much lower levels of usage with more respondents not knowing what mobile payment apps were (26% of respondents from Leeds have not heard of any payment apps, 23% from Birmingham and 25% from Newcastle).
  • Those over 55 years old are more aware of payment apps than their children
    Baby boomers have greater levels of awareness of mobile payment apps when compared to Generation X (62% vs 49%). However, Millennials lead the way when it comes to usage with 43% of respondents actively using their mobiles as a payment method.
  • Security isn’t at the forefront of everyone’s mind
    The majority of respondents are most concerned with having an app with a greater focus on security, with the exception of Nottingham, Sheffield and Southampton. People from Nottingham and Sheffield preferred apps which have a smooth and fast sign-up process (30% and 31% respectively), whilst those from Sheffield preferred product discounts and coupons which could be redeemed when using the app (25%).
  • People in Plymouth clearly love to shop*
    86% of people from Plymouth are using mobile payment apps for retail shopping, compared to just 33% in Sheffield. Respondents from Sheffield prefer to use mobile payment apps for buying petrol (47%).
  • Plymouth also came out on top for using mobile payment apps for transportation*
    43% of respondents from Plymouth use mobile payment apps on transportation, which provides commuters with a smoother journey.
  • Retailers need to do more to help consumers adopt mobile payments
    Whilst 30% of those surveyed were actively making payments using a mobile payment app, 50% were aware of the technology but had not yet been offered the opportunity to use them.

“The research clearly shows that consumers are not only aware of, but willing to use mobile payment apps and that they are understandably cautious when it comes to their finances,” said Georg von Waldenfels, Executive Vice President of Consumer Solutions, Wirecard AG. “However, there is still uncertainty about what systems are in place to protect users from fraud. It is unsurprising that consumers are looking for a service that has data security at its heart.”

He continued: “As a result of such concerns, Wirecard has launched boon. with Apple Pay in the UK. It is a user-friendly and yet extremely safe mobile payment app which combines the ease and convenience of paying through your mobile with the peace of mind that using a pin on a credit card can bring. The app guarantees maximum security through modern standards and technologies. boon. is certified and verified by MasterCard which enables smartphones to be used as easily and securely as a standard chip card. We are currently working on integrating further innovative features that will extend the potential applications besides payment. With boon., mobile payments can now be part of everyone’s life in the UK irrespective of which bank you are a customer of.”

Georg added: “The research also indicates that there is an opening for retailers to attract customers who want to use mobile payment apps but are not being presented with opportunities to do so. Retailers should look to invest in their technology so that they can attract those customers and take advantage of this missed opportunity.”

The research was conducted by Censuswide UK and consisted of 2,000 UK participants.

*520 responded to the question related to how mobile payment apps were being used.

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Categories: Mobile Payments

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