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Security concerns inhibit mobile payments growth

Anuradha Shukla | March 9, 2012
Sybase 365 survey indicates concern over security of personal financial information exchanged during mobile transactions.

Consumers are concerned over security of personal financial information exchanged during mobile transactions, according to a newly released Sybase 365 survey.

Thirty-eight percent of survey respondents believe this concern will be the primary challenge to large-scale adoption of mobile payments.

Sybase 365 polled mobile industry experts at the GSMA Mobile World Congress 2012 from 27 February to 1 March in Barcelona, Spain to uncover growth projections within the mobile commerce market.

Eighty-one percent of those surveyed said that Near Field Communication (NFC) will not drive widespread adoption of mobile payments for at least another two to five years.

Thirty-eight percent of global survey respondents said coordination among key mobile commerce stakeholders and the development of mobile payment standards will facilitate the widespread adoption of mobile payments.

How to drive mobile payments

Sybase 365 survey findings show mobile operators as important catalysts driving global widespread adoption of mobile payments.

Twenty-four percent expect banks to be a leading driver, and about 19 percent said companies such as Amazon, PayPal or Groupon will encourage great adoption.

Sybase 365 says that although NFC technology will facilitate the future growth of mobile payments, more established methods such as remote mobile payments are driving deployments and adoption within the ecosystem.

"Material advances for mobile payments will only come about when banks, operators and retailers can converge on a business model, and with it true industry interoperability, leading to a widely embraced mobile payments system," said John Sims, president, Sybase 365.

 

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