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Wednesday, November 9, 2011

Gemalto research says security concerns, not security problems, hampering NFC adoption

Consumer concerns about the security of NFC mobile contactless payments are causing a barrier to adoption, according to new research commissioned by digital security company Gemalto. The information has been released as part of the company’s campaign for better education around the subject of NFC.

Over a third of respondents - 34% - said they hadn’t used or wouldn’t use their phone as a mobile wallet due to security concerns, with 24% not trusting NFC because they didn’t understand how it worked. Overall, just 32% of people had heard of NFC (Near Field Communications) or knew what it stood for.

Misuse was a big concern. 46% thought criminals would be able to run up huge bills if their NFC phone was lost or stolen. However, Gemalto points out that consumers can choose to authenticate transactions by entering a PIN code on the payment application, even for small amounts, while the payment app on a lost or stolen phone can be locked remotely ‘over the air’.

Nassir Ghrous, head of mobile communications for Gemalto UK and Ireland, said “The reality is that mobile NFC payments are extremely safe and users have complete control over the value of payments made on their handsets. The value of mobile NFC transforms the handset into a ‘mobile wallet’ where consumers can store credit cards, gift cards, loyalty cards, transport tickets and mobile coupons all securely in one place. Providing unparalleled convenience for the user, it also enables businesses to add additional services and ultimately increases sales. Gemalto leads the way in mobile NFC pilots and commercial roll-outs worldwide, including France, UK, Poland and Singapore. Consumer satisfaction rates amount to 90%, with a demand to make high value payments. This demonstrates the disparity between consumers who have used mobile NFC payments and love it, and others who are understandably concerned about security, due to a lack of experience and knowledge.”



Last month we talked to Howard Berg and Naomi Lurie of Gemalto about a variety of mobile financial services, from NFC to payments by text message. You can listen to the full interview on our website, via iTunes or by downloading the MP3 file.
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Opinion Articles

Why a mobile TV service is just like a zombie

Mark Bridge writes:

Here in the UK, we’re struggling a bit with mobile TV. Which made me wonder what the problem really was. Well, after a long evening with the finest stilton and the cheapest port, the answer came to me in a dream. A mobile TV service is just like the lurching, drooling nightmare creatures that appear in every zombie film. And once consumers understand zombies, they’ll understand the problems with mobile TV. Let me explain.

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Selling your way out of a recession? Of course you can!

Iain Graham writes:

Everybody these days (apart from a lucky few!) is suffering from a lack of business or reduced sales due to the current 'downturn in the economic climate'. In my opinion, this is the time when sales people should stand up and be counted!

No, I don't mean the hard nosed, foot in the door double-glazing, second-hand car or mobile phone types (no offence!), I mean EVERYONE! Selling is a concept as much as it is a profession.

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Mobile & Contactless Payments

James Rosewell offers his opinion on the current state of mobile and contactless payments.

The banking and mobile industries have big plans for Near Field Communication (NFC) as the mobile payment mechanism of the future. Barclaycard has been leading the way from the credit card sector forming a partnership with Orange, having previously worked with O2, and running a catchy TV advert prompting contactless cards using VISA’s paywave system.

However the reality of NFC payments appears a lot further away. The Point of Sale (POS) technology appears to be badly deployed by some of the first-phase retailers mainly made up of low-value high-volume businesses like coffee shops, fast food outlets and newsagents.

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Insecure Mobile Browsers

James Rosewell writes: I note with interest Barclays mobile on-line banking home page extolling the safety of mobile banking whilst claiming it’s as secure as their non-mobile equivalent. This is on the same page that recommends customers use Opera Mini to access Barclays mobile on-line banking.

Yet following the link to the operamini.com web site and looking at the help section we can read Opera’s answer to the question “Is there any end-to-end security between my handset and — for example — paypal.com or my bank?” and the answer is “No. If you need full end-to-end encryption, you should use a full Web browser such as Opera Mobile.”

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