Last year, payment card fraud in the UK was estimated at £618m, with the global figure standing at $21.84bn. Because of this, banks, issuers, schemes, merchants and PSPs are taking significant steps to improve online security and reduce the risk of fraud.
However, high profile breaches, consumer awareness campaigns and personal experience have all affected consumer trust levels; something vital to the success of any online or mobile service. With this in mind, MYPINPAD conducted an independent online survey to assess the current state of consumer confidence when transacting online.
For our respondents, security was the main priority when making online purchases, with only 2% indicating they would rather have a fast transaction over a secure transaction. 67% of consumers questioned were concerned about their online shopping and banking and nearly a quarter of all respondents indicated they were very concerned.
Despite concerns, 59% of surveyed consumers indicated that they expected online commerce security to improve over the next five years.
The use of both PIN and biometric based authentication was identified by half of the survey respondents as the most significant step online retailers and banks could take to improve consumer trust, whilst just under 40% referred to the use of PIN based authentication alone as a strong method in which to protect their data.
This survey is the second in an insight series conducted to uncover the dynamics around consumer trust in digital and online transactions, both for financial management and online purchases. This report explores not only how consumers behave and what they want, but also what they fear, what concerns them, and what banks, online retailers and PSPs need to do to address these issues.
The full survey report is now live and available on our website.