Mobile Payment Magazine

Research: Smartphone Banking Security

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Javelin Strategy Research has release a new report entitled: “Smartphone Banking Security: Mobile Banking Utilization Stalls On Consumer Fears.”

Mobile banking adoption has stagnated despite explosive growth in smartphone adoption from 2009 to 2011.

In 2009, one in four smartphone owners considered mobile banking unsafe. One year later, 40% of smartphone owners felt the same way.

As financial institutions push forward, offering innovative and convenient financial options to a new mobile generation, consumers are left questioning whether security was sacrificed in the rush toward innovation. In the context of the recent infiltration of malware into the Android Market, it is imperative that FIs reassure consumers that mobile security is a priority.

Primary Questions

  • What is the rate of smartphone adoption?
  • What is the growth rate of mobile banking and purchasing?
  • What are some factors that are inhibiting the adoption of mobile financial activities?
  • How can FIs encourage mobile financial activity?

For more information please click on:
http://www.researchandmarkets.com/product/704e3c/smartphone_banking_security_mobile_banking_u

Methodology

For this report, Javelin gathered data from three different surveys administered in 2010 – 2011. Each survey collected data from a base of 3,000 to 5,000 consumers, representative of the general U.S. population. They were interviewed on a range of topics including, but not limited to, fraud, security services, and technology adoption.

  • For questions answered by all 5,102 consumers in the March 2011 Financial Services Channel survey, the margin of error is &Plusmn;1.37 percentage points at the 95% confidence level. The margin error is higher for questions answered by subsegments. For longitudinal comparison, data from 2009 and 2010 was reweighted to the latest census targets according to the U.S. Census Current Population Survey (CPS).
  • For questions answered by all 5,211 consumers in the March 2010 Financial Services Channel survey, the margin of sampling error is &Plusmn;1.39 percentage points at the 95% confidence level.
  • For questions answered by all 3,100 consumers in the July 2010 Mobile survey, the margin of error is &Plusmn;1.76 percentage points at the 95% confidence level.

Audience: Financial institutions, mobile banking and marketing departments, credit card networks, credit card issuers, payment processors, mobile banking vendors, mobile payment vendors, mobile network operators, authentication technology vendors, authentication platform vendors.

For more information please click on:
http://www.researchandmarkets.com/product/704e3c/smartphone_banking_security_mobile_banking_u

Title Index:

– Overview
– Methodology
– Executive Summary and Recommendations
– Smartphone Adoption
– Stagnation of Mobile Financial Activities
– Security Concerns with Mobile Banking

What is a Killer App?

– Consumers Prefer Mobile Optimized Browser Sites
– Companies Mentioned

Table of Figures

– Figure 1: Smartphone Ownership, 2009 – 2011
– Figure 2: Consumers Who Have Mobile Banked in the Past 90 Days by Primary Bank
– Figure 3: Mobile Banking Use by Smartphone Users, 2010 – 2011
– Figure 4: Purchases Made via Mobile Devices by Smartphone Users, 2009 – 2010
– Figure 5: Smartphone Owners’ Perception of Mobile Banking Safety, 2009 – 2010
– Figure 6: Smartphone Owners’ Perception of Mobile Banking Channels, 2009 – 2010

For more information please click on:
http://www.researchandmarkets.com/product/704e3c/smartphone_banking_security_mobile_banking_u


Smartphone Banking Security: mBanking Susceptible to Consumer Fears

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According to Research and Markets, mobile banking adoption has stagnated despite explosive growth in smartphone adoption from 2009 to 2011, and the company attributes the slowdown to consumer fears over mobile banking security.

In 2009, one in four smartphone owners considered mobile banking unsafe. One year later, 40% of smartphone owners felt the same way. As financial institutions push forward, offering innovative and convenient financial options to a new mobile generation, consumers are left questioning whether security was sacrificed in the rush toward innovation.

In the context of the recent infiltration of malware into the Android Market, the company notes that it is imperative that FIs reassure consumers that mobile security is a priority.

Research and Markets  has announced the release of a new  Javelin Strategy & Research report entitled “Smartphone Banking Security: Mobile Banking Utilization Stalls On Consumer Fears.”

Primary questions covered:

  • What is the rate of smartphone adoption?
  • What is the growth rate of mobile banking and purchasing?
  • What are some factors that are inhibiting the adoption of mobile financial activities?
  • How can FIs encourage mobile financial activity?

Companies Mentioned:

  • Apple
  • Bank of America
  • BB&T Bank
  • Chase
  • Citibank
  • Citizens
  • Fifth Third Bank
  • Google
  • HSBC
  • IBM
  • Key Bank
  • Microsoft
  • PNC
  • Regions
  • RIM
  • SunTrust
  • TD Bank
  • US Bank
  • USAA
  • Wachovia
  • Wells Fargo

More information: Smartphone Banking Security: Mobile Banking Utilization Stalls On Consumer Fears

 

Source: Business Wire

Visa Introduces Digital Wallet

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Visa Inc. has  announced the a number of new offerings, including a secure cross-channel digital wallet and a range of customized mobile payments services.

“Our new solutions deliver greater consumer choice, convenience and control while helping our clients grow their businesses. By helping to reduce abandoned online shopping carts and bringing new account holders into the Visa network, we create a win-win-win for merchants, consumers and financial institutions,” noted Joseph W. Saunders, Chairman and Chief Executive Officer of Visa Inc. “In addition, we believe Visa’s new payments products and services will help expand financial inclusion to the billions of mobile subscribers today who currently lack access to traditional financial services.”

In certain countries with established electronic payments infrastructures, expansive Internet usage and broad mobile network penetration, Visa will be introducing a digital wallet and services platform. The digital wallet will store Visa and non-Visa payments accounts, support NFC payments through the innovative Visa payWave application and deliver a wide range of transaction services to accommodate multiple commerce scenarios–including eCommerce, mobile commerce, micropayments, social networks and person-to-person payments.

Visa is working with various leading payments card issuers, community banks, credit unions, acquirers, payments processors and merchants to launch the digital wallet. Among the financial institutions and organizations supporting Visa’s wallet strategy are:

  • Barclaycard US
  • BB&T Corporation
  • Card Services for Credit Unions (CSCU)
  • ICBA Bancard
  • First Financial Bank of Ohio
  • Nordstrom fsb
  • Pentagon Federal Credit Union
  • PNC Bank
  • PSCU Financial Services
  • Regions Bank
  • Royal Bank of Canada
  • Scotiabank
  • TD Bank Group (US and Canada)
  • US Bank

Visa expects to launch the digital wallet in the U.S. and Canada in fall 2011.

Key features of the wallet are expected to include:

  • Click-to-buy: Consumer enters an email address, alias or online ID and password, instead of a billing address, account number and expiration date. In addition, Visa is exploring dynamic authentication technologies that will bring added layers of security to online purchases.
  • Cross-channel payments solution: The wallet consolidates multiple Visa and non-Visa payments accounts and can be used in mobile, eCommerce, social network and retail point-of-sale environments.
  • Preference management: A menu that enables consumers to set preferences for how their wallet will work, allowing them to customize and control the features of their personal wallet from privacy settings to designating which account will be accessed based on merchant type or purchase amount.
  • Merchant offers: A service that allows consumers to personalize their shopping experience by opting-in to receive money-saving discounts or promotions from participating merchants.

“The widespread adoption of Internet and mobile technology is changing the way people connect and transact across the globe, so we’re focused on delivering locally-tailored payments products and services,” said Saunders. “We are introducing new solutions for eCommerce and mobile devices that provide the same ‘Visa-quality’ experience–convenience, reliability and security–people enjoy when using their Visa cards at a retail location. In doing so, we are accelerating the global shift to digital payments by harnessing our brand, products, network and 50-plus years of payments experience.”

Mobilizing Payments in Emerging Economies

In certain emerging geographic markets with significant mobile penetration, Visa will work with financial institutions and mobile-network operators to provide consumers with a secure, reliable and globally accepted form of payment and the ability to transfer and receive funds, manage financial accounts or top-up wireless air time using their mobile handset. The wide range of features and functions being developed for the digital wallet will allow Visa to pursue a number of strategies to tailor or bundle services to local needs.

  • In countries like India and Russia, where card issuance and mobile subscriptions are high, but card usage is relatively low, Visa will help drive account activation and usage by working with financial institutions and mobile operators to link existing card portfolios with mobile devices to give handsets payments functionality.
  • In countries within Africa and the Middle East where mobile device usage is high and traditional electronic payments infrastructure is less developed, Visa will work with mobile network operators to link new virtual mobile prepaid Visa accounts to mobile phone numbers to enable cash-in, cash-out, personal payments and mobile payments –including bill payments and wireless airtime top-up. Visa also intends to connect existing “closed loop” mobile money services that today provide basic mobile banking and payments services to unbanked and under-banked consumers to its global, open loop network–VisaNet. The integration will open closed loop systems, and provide consumers and merchants with unprecedented scale, functionality and acceptance beyond their existing local geographic footprints.

Across all emerging geographic markets, Visa’s payments technology and significant work in establishing global payments standards will aid in navigating the complexity of the myriad of network operators, handset models and operating systems in use globally, helping to enable millions of new and existing Visa account holders to simply use mobile technology for payments services.

Expanding Capabilities of Visa Network

Visa is developing its next generation services by integrating VisaNet, its global processing network, leading credit, debit, prepaid and commercial product platforms, new capabilities it has acquired through its subsidiaries CyberSource, Authorize.net and PlaySpan, and the unique expertise and services of key commercial partners. In deploying flexible solutions that are locally relevant and globally interoperable, Visa aims to attract more participants to its network and better enable them to connect and transact.

“Our build, buy and partner approach puts Visa in a unique position to deliver the speed-to-market and scalable solutions needed to stay ahead of new demands created by the convergence of Internet, mobile and electronic payments technologies,” said Saunders. “Visa and our subsidiaries are working with financial institutions, merchants, mobile network operators, and innovative technology providers to bring new ways to pay and be paid to more consumers and merchants around the globe.”

Source: Business Wire