Global Security Fears Remain a Drag on Mobile Banking and Payments

Despite intense market-development efforts by tech vendors, processors, and some banks, mobile banking and payments still suffer from consumer distrust, according to results of an international survey released this week by Blue Bell, Pa.-based technology-services provider and server manufacturer Unisys Corp. Unisys, which commissioned a survey of more than 13,000 consumers in 14 countries, says 71% of respondents would not consider using a mobile device to bank or shop. The U.S., where 1,008 consumers were surveyed, came in at the sample average of 71%. The countries most reluctant to use mobile devices were France, 86%; the United Kingdom, 79%; Australia, 78%; and Belgium and Italy, both at 77%. Conversely, those saying they were willing to try mobile devices for banking, bill payments, and online shopping generally fell into the 11% to 13% range, with results varying widely by region and country. Willingness was highest in Malaysia (26%) and Singapore (19%), two countries where cell-phone use and functionality are advanced. The U.S. came in at 13%, while willingness was lowest in France at 3%. Only 9% of respondents actually reported using their cell phones or personal organizers to pay bills, perform banking functions, or shop online. Germany came in the highest at 21%. Next were Hong Kong, 16%; the U.S., 14%; New Zealand, 13%, and the Netherlands, 10%. Brazil, at 2%, and Spain and the U.K., both at 1%, brought up the rear. Security remains consumers' biggest concern. Some 59% of respondents do not trust their mobile devices to provide a secure transaction. The trust factor varied widely by region, with 82% of Brazilians assessing their mobile devices as “not very” or “not at all” secure. Only 13% of Brazilians said their devices were “very” or “somewhat” secure. The most favorable attitudes are in New Zealand, where 41% of consumers termed their devices very or somewhat secure and 45% said not very or not at all secure. In the U.S., 37% of respondents dubbed their devices very or somewhat secure while 55% said not very or not at all secure. A Unisys spokesperson says the “drastic differences in regions” were the biggest surprise in the results. “This proves that security is a local issue, despite the fact that many threats extend across geographic borders without discrimination,” the spokesperson tells Digital Transactions News by e-mail. “People's perceptions, concerns and needs are directly influenced by cultural norms, and the manner in which security is or is not managed by governments, businesses, and other influencers in local markets.” Banks seem to be in the best position to overcome consumers' security worries. The degree of trust varies widely, but in all 14 countries consumers chose banks over telecommunications providers and online retailers when asked which of the three groups they believe provides the best security. Trust in banks is greatest in Italy, at 72%, followed by the U.S. at 67%. Only 6% of Americans said telecommunications providers offer the best security, and 4% said online retailers. The most trusting attitudes toward the telcos are found in Malaysia, at 26%, and Singapore, 13%. Online retailers have the most fans in France, where 10% of respondents said they offer the best mobile-transaction security. Unisys's findings partially reflect those of a JupiterResearch study released last year in which only 8% of online American adults said they were interested in using their cell phones for banking functions. Even fewer were interested in mobile payments (Digital Transactions News, April 30, 2007). International Communications Research of Media, Pa., conducted the survey of 13,296 consumers in March, mostly by phone, as part of Unisys' ongoing research into security issues. The spokesperson says the global results have a margin of error of less than 1%.