Fear of the digital wallet: taking security concerns about mobile payment seriously

It is a paradox: only a few people use mobile payment, yet many assume that in a few decades cash will be more or less redundant. Today, there is still widespread concern about falling victim to fraudsters when shopping with one’s digital wallet. If banks counter these concerns with well-thought-through security concepts, they can position themselves well in an expanding market.

In a recent survey by Bitkom, one quarter of the participants said that they conduct all of their banking activity online. It is possible that, within the foreseeable future, even going to a cash machine will become redundant if banks, third party providers, traders and, last but not least, customers see the potential of mobile payment for themselves. In the YouGov report “Cashless payment in Germany” which was presented this summer, only four per cent of the ca. 2,000 respondents said that they use mobile payment; however, four in ten participants believe that all payments will be cashless in 20 years’ time.

In order to enter the mobile payment market as a provider and position oneself well at an early stage, it is worth taking customers’ concerns seriously and offering solutions. The most pressing are security concerns. Three quarters of respondents are convinced that mobile or cashless payment increases the risk of becoming a victim of fraud. This is also the main reason for not using a mobile payment system (33 per cent), followed by a lack of trust in the provider (22 per cent) and worries about what will happen if the smartphone becomes infected with a virus or malware (18 per cent).

The more that the smartphone becomes the organisational “control centre” for many aspects of a person’s life, the greater and more justifiable the fear of data theft. On the other hand, the attractiveness of mobile end devices lies in the fact that they are open to anything: having a variety of applications makes our lives easier and provides entertainment – and all of these applications can be downloaded in an instant. It is this very openness that makes it easy for cyber criminals to penetrate the digital private lives of their victims.

It is therefore advisable to exercise general caution when using payment and banking applications. As well as mobile payment, financial transactions via voice assistants like Siri and Alexa are also viewed very critically. The more actively companies address the security concerns, the more they are perceived as a trustworthy partner with their product. Our mobile banking applications have very high security standards. Two-factor authentication – including via touch and face ID – is an absolute must for us. In combination with our mobile application platform, these processes offer the bank customer both extremely secure and very convenient banking.

Bank customers access all financial information and services through a single app and can carry out all the transactions they want without having to leave that environment. Our Digital Banking Hub can be used to quickly and securely integrate other apps, such as mobile payment apps from third party providers. Thus, our open digital banking architecture puts you in a position to offer your customers a comprehensive and, above all, secure customer experience. This means that, in addition to the current four per cent who are early adopters and stated in the YouGov report that they use mobile banking, you can also convince those customers who are still reticent about apps which will gain bandwidth very quickly.

Our Product Innovation Tour 2017 gives you the opportunity to find out about the future of digital banking and our mobile application platform, along with colleagues and experts. Here you can find out more about secure mobile banking.

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