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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.
Author: The Fonecast
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Tags: security nfc payments gemalto

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