Mobile wallets and related apps are the hottest new innovation in tech, right? Apple Pay was the company’s big announcement last year; the company had plenty of partners like Chase and Capital One lined up, and a survey covered yesterday by VentureBeat estimated that 38 percent of “major retailers” will be using it by the end of the year.
Here’s the problem: consumers’ trust in such services is on the decline…especially in the United States.
A survey by MEF Global, a UK-based firm serving global companies like MasterCard, Samsung, and Microsoft found that the main reason consumers don’t use mobile payment options is that they don’t trust the responsible companies to protect their privacy.
The firm surveyed 15,000 mobile users in 15 countries to reach these numbers:
- 49 percent of consumers say “lack of trust” limits the number of payment apps and “mobile wallet” services they use, and that’s an eight point jump from one year ago
- 34 percent say privacy is the most important factor determining whether they make purchases at all (last year the number was 30)
- 72 percent of mobile users say they’re “uncomfortable sharing personal data” with such apps
- 35 percent of American consumers reported a lack of trust in the makers of such services; that number jumped nine points from last year, marking the single largest bump in any country
Yes, Apple Pay will probably be fine. But this is a serious trust issue that requires a robust messaging response from everyone in the mobile payment space.
h/t Computer World