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Study: Consumers have doubts about mobile payment security

The great majority (88 percent) of consumers would discontinue using digital payments if they personally fell victim to cybercrime as a result of a data breach, according to a new report from Thales and Wakefield Research.

Wakefield conducted the email and online survey in August, polling more than a thousand nationally representative sample of U.S. adults.

Respondents said that they would discontinue use of digital payments if:

  • funds were stolen from a linked bank account, 70 percent;
  • unauthorized charges appeared on a linked credit account, 68 percent;
  • username and password were stolen, 59 percent; or
  • they experienced an increase in spam emails; 30 percent.

The survey revealed that more than half (60 percent) of respondents currently use a method of digital payment, with baby boomers (50 percent) lagging behind millennials (74 percent). The most popular digital payment method was PayPal, currently used by 51 percent of survey respondents. The next most popular forms of digital payment are as follows:

  • Apple Pay, 11 percent;
  • Google Wallet, 7 percent;
  • Android Pay, 6 percent;
  • Chase Pay, 6 percent;
  • Samsung Pay, 5 percent; and
  • Venmo, 3 percent.

Lastly, 40 percent of Americans do not feel safe using digital payments while traveling.

"It's easy to see why mobile payments continue to grow in popularity — they are fast and convenient," said Jose Diaz, director of payment strategy at Thales e-Security. "But results of the survey showed that people have strong doubts about their safety, especially while traveling. The mobile payments industry needs to take note that their future success is based on trust.  And that trust can easily fail if they do not provide the strong protection of their infrastructure, transactions and data that customers expect."