Research Shows Lack of Uptake of Swipe and Pay Technology via Smartphones

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28th October 2013 10:23 - Financial Services

Latest research carried out by YouGov has found that less than one in four consumer would use smartphones like a credit card to make payments via an app.  In the poll of 2,000 respondents, eighty per cent feared that sensitive bank details wouldn’t be secure with one in five saying battery life of the phone would put them off.

However, despite the concerns, mobile banking apps have been downloaded by thirty six per cent of mobile phone users with the most popular function being the ability to check balances and transferring money between accounts on the go. Previous studies carried out by Zapp earlier this year also found that fears over security of details, lengthy sign-up processes and problems making payments were holding people back despite the potential benefits of swipe and pay technology using smartphone technology. Reluctance to take advantage of this technology may stem from a series of fraud attacks on NatWest customers last November. The mobile banking app was suspended after criminals were able to withdraw money from customer bank accounts. Other  fraudulent attacks include the Eurograbber attack in December when criminals were able to steal £30 million from 30,000 individuals across Europe.

Further research carried out by MPayMe found that mobile wallets fared even worse, although over fifty per cent of the UK population own the necessary smartphones to make payments, less than ten per cent made a point of sale purchase.  Obstacles included the inability to use the wallet when abroad and the need to use multiple apps for each online store. The research also discovered that less than eight per cent (7.5%) of retailers on London’s Oxford Street were able to set up and receive mobile payments.

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