SOURCE: Payfone

Payfone

September 10, 2015 09:00 ET

Payfone Survey Highlights Security Concerns About Mobile Wallet Authentication

Leading Identity Authentication Provider Makes Mobile Payments Secure

NEW YORK, NY--(Marketwired - Sep 10, 2015) - User authentication is the preeminent challenge hindering mobile wallet adoption, according to a new Payfone survey of payments industry professionals conducted online by Let's Talk Payments. Payfone, provider of a mobile identity verification service, solves this problem by bringing secure and frictionless authentication to every transaction.

Authentication challenges are pervasive throughout the mobile payments process, say survey respondents. Thirty-one percent believe that fraud is most likely to take place when a card is first added to a mobile wallet, while 41 percent think fraud is equally likely throughout the entire process. When it comes to authentication methods, 45 percent say that identity verification during initial card provisioning is currently the least effective, and another 45 percent believe that the use of mobile phone numbers as unique identifiers is least effective.

The survey additionally found that 65 percent of respondents think the recent spate of media coverage around Apple Pay fraud has somewhat or greatly affected consumer adoption of mobile wallets. For mobile wallets to meet user security needs and gain widespread adoption, payments professionals believe that current identity verification protocols need to be fixed. At the same time, Apple Wallet was chosen by 37 percent of respondents when asked which wallet is the most secure. For least secure, 51 percent indicated they did not know. The wallet that received the most votes for least secure was Loop Pay with 27 percent of the votes.

"Mobile devices have become the remote controls of our lives, but when it comes to mobile payments, security remains a major hurdle challenging adoption," said Payfone CEO Rodger Desai. "For too long, security has relied on consumers to assert their own identity. The verification process is onerous for consumers and financial institutions alike, and it's too easy to hack. Payfone presents an effective and scalable solution to these issues."

The surveyed payments professionals, who serve as a leading indicator of consumer sentiment regarding mobile payments, also identified the major roadblocks to mobile wallet adoption, but were divided in their thoughts on what is currently missing from mobile wallets. 39 percent chose retailer adoption, while 31 percent chose consumer adoption and an equal number selected a joint effort between MNOs and payment providers.

Many industry experts expect that Apple Pay and mobile payments in general will take off during the upcoming holiday season, and Payfone plans to revisit these topics in another survey in early 2016.

Payfone extends the mobile network operator (MNO) authentication that is used to authenticate consumers for calls and text messages. The provider employs its deep integration with tier-1 MNOs to authenticate a user's SIM card ID, device ID and phone number against the mobile network to verify his or her identity. Authentication takes place behind the scenes and doesn't require the customer to take any action or install any software, making it seamless and secure for both consumers and financial institutions.

Methodology
This survey was conducted online within the United States by Let's Talk Payments on behalf of Payfone, May 18 - June 13, 2015, among 193 payments professionals.

About Payfone
Payfone is a leader in mobile identity authentication. Payfone's suite of network authentication services provides unparalleled mobile security while eliminating friction from the customer experience. The company is backed by leading venture firms, financial institutions and mobile network operators and is based in New York. Follow Payfone on Twitter @payfone.

About Let's Talk Payments
Let's Talk Payments provides Independent Global News & Research Driven Insights at the Intersection of Money and Commerce. LTP is the fastest growing Payments/Money news and analysis portal in the US and globally. We have more than 900 articles and will cross 1.5 Million page views this year.

Contact Information