How can you address consumer concerns about mobile payments?

Lack of awareness is a major hurdle in mobile payment adoption. Educating customers on the basics is key. Share info on setting up a mobile wallet, linking payment methods, and the steps for transactions – be it scanning QR codes or tapping NFC terminals. Utilize diverse channels like websites, social media, email, and in-store signs. Demos, videos, and tutorials go a long way in showcasing the simplicity and convenience of mobile payments. Let's bridge the knowledge gap!

It would be good to know what mobile payment we are talking about? Mobile payments are not clear to ordinary consumers. And if it is not clear it can't be adopted (see adoption process in Mkg)...We often mix mobile payment models based on Banking or Telcos with the technologies used and their features. So if we want to be clear, we need to be exhaustive and precise on the basics. Talk about the major categories of mobile payments, which are not similar and do not meet the same needs: Wallet (open to the use of cash), Card-based payment (credit card, debit card, etc.), Carrier billing (DCB, SMS, USSD, RCS etc.), NFC, P2P transfer. And then the functional aspects: Payment by biometrics, instant messaging, barcode, voice recognition, IoT, etc.

Push provisioning cards to wallets like Apple Pay and Google Pay are the most secure forms of mobile payments today, as your card details are replaced with a device bound token that can only be used by that device when purchases are authorized. This basically means your sensitive card details can’t be stolen because they are never used to authorize transactions. These wallets also require biometrics to complete authorization of a transaction; whether that be your fingerprint or face. Merchants that store card data on file for future purchases are also moving toward tokens that similarly can only be used at that merchant instead of storing sensitive card data. This makes storing payment preferences in eCommerce wallets safer, too.

We should highlight the extreme accessibility of this payment method which is based on only 2 pillars: possession of a smartphone and an internet connection. That’s an access to more than half of the world’s population! Including the unbanked or underbanked, most often in emerging countries. So it makes it a universal payment solution. Then it's necessary to explain that mobile payments can be used for purchases (online or physical), bill payments, credit recharges, P2P transfers but also to manage your finances. In short, there is nothing more versatile. Finally, we can perhaps highlight another topical aspect: its ecological criterion (no paper, no plastic)

Mobile payments mean top-notch cybersecurity advantages: Advanced Security: Biometrics & tokenization. Hygiene-Friendly: Minimized physical contact. Real-time Monitoring: Instant transaction alerts. Authentication: Robust biometric verification. Secure Element Tech: Encryption for data protection. It's not just convenience; it's a cyber-smart choice!

Beyond security benefits like using tokens instead of sensitive card data for purchases, the next best benefit for the consumer is convenience. You don’t have to delay that purchase just because you’ve left your physical card at home if it’s provisioned to your mobile device. Merchants also benefit with less friction at checkout, which can reduce shopping card abandonment rates. The greatest opportunity for for improvement lies with solving for the “guest checkout” experience. You are a guest when you haven’t registered as a user with a merchant’s website, nor have any payment preferences stored with the merchant directly.

Having an effective monitoring and anti-fraud system in place will go a long way in addressing this issue. A good anti-fraud system will collect enough information that enable Mobile payment providers to not only prevent fraud attempts but also predict them. This will reassure all the stakeholders that there is adequate protection in place to secure the transactions and the personal or financial data that is transmitted.

More than 60% of merchants in the United States now accept contactless payments which has helped address consumer concerns about availability. In many other countries contactless payment acceptance is almost ubiquitous, making traveling overseas with mobile payments convenient and secure.

Consumer concerns about mobile payments actually stem directly from the process of adopting these payment methods. We know that this well-known process is characterized by 5 stages: Knowledge / Interest / Evaluation / Trial and Adoption. So to answer the question, it seems to me that we just need to help consumers take each of these incremental steps. Which can sometimes take time (see factors that affect this adoption process). This is the role of the different market players (Banks, Telcos, PSP, Merchants, Advertisers, Cybersecurity players, Digital Platforms etc.)