Kount Study Addresses Mobile Payment Security
July 17, 2017
Merchants are becoming more confident about the value and security offered by mobile payment solutions, according to a new report by Kount. The Mobile Payments & Fraud Survey 2017 is based on surveys of 800 merchants.
But while there have been significant advancement in the availability of mobile wallet options, slow but advancing adoption, and a rise in confidence related to mobile payments, merchants have been slow to adopt mobile wallet technology and as a group are rather complacent in terms of security related to mobile payments, Kount adds.
The percentage of merchant survey respondents that believe mobile payments are less risky than standard e-commerce solutions is 15 percent at this point. That’s up from 9.8 percent last year. The report indicates this elevated merchant confidence in mobile payment solutions is due to the adoption of new security protocols and the growing maturing of the mobile payment space.
Last year, 49.2 percent of merchants said they believe mobile payments create the same risk as standard Web e-commerce. This year, 59.9 percent of those surveyed hold that position.
The study indicates that only 7.5 percent of the merchants surveyed believe mobile payments are far riskier than standard e-commerce solutions. That’s down from 13.9 percent last year.
Meanwhile, 17.6 percent of merchants this year said they believe mobile payments are somewhat riskier than e-commerce. That measure is down from last year’s 20.7 percent.
Among the top tools to fight mobile fraud, according to Kount, are the following methods and solutions: complete fraud platform, device ID, secure mobile payment methods, biometrics, 3D Secure, and artificial intelligence/machine learning.
“Merchants have made consistent progress with each passing year when it comes to fraud and mobile payments, but we’re still a long way away from the level of protection needed across the industry,” Kount opined in a June 29 blog. “With card not present fraud on the upswing and the majority of merchants reporting no changes to their fraud prevention practices after a breach, the industry at large is leaving itself open for recurring (and oftentimes preventable) fraud attacks.”
Here are a few other results from the survey: More than half (62 percent) of the merchants surveyed said the mobile channel for revenue is very important. About a third (32 percent) said it is somewhat important. And just 7 percent said it is not important.
And 78 percent said they actively support mobile platforms; 17 percent plan to support them; and just 5 percent have no plans to support mobile platforms. In terms of support for mobile platforms, 72 percent support Apple (News - Alert), 71 percent support Android, 35 percent support Windows, and 12 percent support Blackberry.
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