The rise of the mobile channel – Mobile wallet security

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Following on from our previous mobile wallet post, consumer perceptions of bank-based mobile wallet security vary across the globe, though in general consumers have a high degree of confidence in the security of mobile wallets.

In most geographies surveyed in the Aite report, roughly 80% of consumers report being at least somewhat comfortable with mobile wallet security. In most cases, confidence in 2016 is similar to what it was in 2014, with the exceptions of Brazil, Mexico, and New Zealand, where it has increased statistically.

It is notable that in 2014 a generally very small number of respondents used mobile wallets; that number increases in the 2016 survey, indicating greater adoption of mobile wallets among consumers.

In the Americas, high levels of confidence remained stable or increased. At first glance, it appears confidence decreased in the US Due to the very small population using mobile wallets in 2014, this is not a statistically valid decrease. While there is variation across geographies, overall confidence across the region remains above 80% (Figure 6).

Perceptions of Mobile Wallet Data Security in the Americas

In EMEA, overall confidence remains generally high, though it varies noticeably across different countries and is often lower than in the Americas and the Asia-Pacific. There are noticeable, but not statistically significant, increases in confidence across the region with the exception of the Netherlands. Even there, the decrease in confidence is not statistically significant and is likely more representative of a larger sample size (more than double) than a dramatic decrease in overall consumer confidence.

Much like other regions, the EMEA experiences a complex interplay between mobile wallet adoption and consumer confidence—as more consumers adopt mobile wallets, the wallets become a bigger target for criminals. And more people will be exposed to fraud, driving down confidence, which in turn could negatively impact adoption in the future (Figure 7 and Figure 8).

Perceptions of Mobile Wallet Data Security in Eurozone

Perceptions of Mobile Wallet Data Security in EMEA (Non-Eurozone)

Consumer confidence with mobile wallets in the Asia-Pacific region shows more strong differences between countries than in the Americas or EMEA, but around 80% of consumers report they feel at least somewhat secure with mobile wallets. India is a standout, with over 90% of consumers reporting they feel at least somewhat secure.

New Zealand was the only standout with strong confidence that doubled since 2014. This may be due in part to “Mobile Device Rules & Standards,” published in 2014 by Payments NZ, which oversees New Zealand’s payments infrastructure. These standards are meant to protect consumers and businesses and may have an impact on consumer confidence (Figure 9).

Perceptions of Mobile Wallet Data Security in the Asia-Pacific