Research reveals consumers won’t use mobile to conduct financial transactions

The mobile phone is practically universal, with more than 3.3bn subscribers worldwide, yet 71% of all consumers surveyed in 14 countries will not consider using a mobile device to bank or shop online, according to a study released by Unisys Corporation.

The research, conducted with the latest instalment of the Unisys Security Index, also reveals that more than half of all respondents (59%) do not trust their mobile devices to provide a secure transaction. Moreover, only 9% currently use these devices to conduct transactions involving credit-card payments, money transfers and deposits.

Neil Fisher, vice president, identity management, Unisys, says: "The take-up of mobile payments is predicted to grow exponentially over the next few years. These findings suggest that telecoms providers, banks and retailers will be challenged to convince the public of the security of this new method of payment. Identity theft and fraud is clearly an important and growing problem that is costing banks and the public a huge sum of money and distress. Consumers, governments and businesses need to address this growing problem, not least by being vigilant and taking measures to protect themselves."

Unisys surveyed 13,296 consumers worldwide in March 2008 about their mobile-device habits and how secure they feel when conducting online transactions. The results indicate a widespread apprehension about the security of mobile devices and their ability to protect pertinent information relayed in a financial transaction. Other key findings:
• Consumers most reluctant to use a mobile device to bank or shop online include: France (86%); UK (79%); Australia (78%); Belgium and Italy (both at 77%); and U.S. (71%).
• 21% of German respondents currently use a mobile phone or personal organizer to conduct financial transactions, representing the highest percentage of any country or region included in the survey. UK respondents have the lowest percentage of consumers using mobile devices to bank or shop (1%).
• At least half of all respondents in each country or region - with the exception of New Zealand (45%) and Malaysia (49%) - do not trust their mobile devices to provide a secure transaction.
• Most consumers generally perceive banks as having the best security for mobile transactions when compared to telecom providers and online retailers. However, trust of banks vary greatly from country to country; for example, Italian respondents are twice as likely (72%) to trust a bank to secure an online transaction via a mobile device as respondents in Malaysia (38%).

“Despite unprecedented growth in the number of mobile phone users and the advancement of mobile technologies, telecom providers, online retailers, and financial institutions seem unable to convince consumers worldwide that a secure platform exists for conducting online mobile transactions,” comments Tim Kelleher, VP, enterprise security, Unisys. “There is a great deal of money to be made in mobile payments, but only when consumers believe that the security of the transaction meets or exceeds the freedom of using mobile devices.”

The Unisys research shows that consumers deem certain service providers better equipped to secure mobile transactions. In fact, in more than half of the 14 countries included in the study, fewer than 10% of consumers trust a telecom provider or an online retailer over a bank to provide a secure transaction. Across the world, consumers overwhelmingly favour banks to provide adequate security for mobile transactions.

“The fact that consumers trust banks more than others to secure mobile transactions bodes well for the financial-services industry,” Kelleher added. “But banks must still find ways to work alongside telecom providers and retailers to leverage their innovation while educating consumers on the realities of mobile banking and payment security. Collectively, they must prove that conducting a financial transaction via a mobile device is as secure as doing so on a desktop computer or in front of a bank teller at a local branch.”