SOURCE: SmartMetric, Inc.

SmartMetric, Inc.

November 19, 2015 15:23 ET

SmartMetric Says It's a Question of Trust, the Trust Gap -- Mobile Apps vs Primary Bank in the Digital World

NEW YORK, NY--(Marketwired - November 19, 2015) - SmartMetric, Inc. (OTCQB: SMME) -- asked how much trust they have in businesses and organizations to keep their personal information secure, 9 out of 10 American consumers say they have a lot or some trust in their primary bank (91%). Social Networking sites or apps have lowest levels of trust. Only 2 in 10 consumers have a lot or some trust in these social networks' ability to keep their personal data safe (23%).

The trust advantage is the single largest strength in the market place for traditional banks. They hold an enviable position in the minds of the public. A position that "apps" and mobile wallets are far from. Banks need to be very careful that harm could be done to their enviable trust position by associating with less trusted technology that could over time make banks less trusted in the eyes of the consumer.

Even credit card companies have less trust in the minds of the consumer than Banks. The continuation of security issues surrounding plastic payments could make this trust gap even greater. However the humble plastic card is still far more trusted even by millennials than mobile wallets.

CONSUMERS TRUST BANKS THE MOST TO KEEP THEIR PERSONAL DATA SAFE

YOUR PRIMARY BANK 91%

CREDIT CARD COMPANIES 65%

ONLINE RETAILERS 58%

SOCIAL NETWORKING WEBSITES AND APPS 23%

Only 2 in 10 Americans say they have a lot of trust in the companies they regularly do business with to keep their personal information secure. And more than half of U.S. adults report that their trust decreased a little or a lot (55%) over the past year.*

Trust is affecting digital wallet adoption. Analysis of a recent Gallup survey finds that only 2% of Americans actually use digital wallets. While 13% of smartphone owners actually have a digital wallet app, the majority of those who do have an app (76%), rarely -- if ever -- use it. A real contrast exists between these figures and the perceived interest in digital wallets.

Here are the primary reasons consumers are unlikely to use a digital wallet in the next 12 months according to a June 2015 Gallup research survey:

  • 55% -- Security concerns (hacking, losing phone)
  • 21% -- Don't know enough about digital wallets to make a decision
  • 14% -- Don't see any benefit of using a digital wallet over just credit cards
  • 5% -- Don't think digital wallets are accepted at enough places to be useful or worth it

Of 13% who have a digital wallet, 76% have never used it or almost never used it to make a purchase from a retailer in the past 30 days.

Only 13% of smartphone owners have a digital wallet on their device, according to a new Gallup report. Viewed another way, 87% of smartphone owners don't.

SmartMetric sees that technology should build on Banks' strengths. Enhancing the "trust" in the Banking experience is now the biggest challenge for Banks. Using technology to enhance trust of existing systems such as cards will have a greater immediate return than trying to win over the trust of the mobile user who is overwhelmingly nervous to put their trust in to date unsafe technology.

From analyzing the research coming out over the past 12 months it is obvious that a lot of ground can be made through Banks increasing the trust level of payments cards. Payments cards aren't going away anytime soon and remain the primary method of choice in the hearts and minds of the consumer said today, SmartMetric's, President & CEO, Chaya Hendrick.

The SmartMetric biometric payments card solution works with existing chip card readers in retail stores and ATMs without the need for additional hardware or systems at the bank. According to EMVco there are 3.4 billion EMV chip cards now issued around the world. The United States is now changing over in excess of 1 billion credit and debit cards to EMV chip cards throughout the country.

To view a video of the SmartMetric biometric chip card follow this link:

SmartMetric Biometric Payments Card -- https://youtu.be/zSX59uHoHqU

To view the company website: www.smartmetric.com.

Source: Gallup poll based on telephone interviews conducted Oct. 7-11, 2015, on the Gallup U.S. Daily survey.

Safe Harbor Statement: Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors.

*Source Data: Gallup Research, March 11, 2015

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