NEW YORK, NY--(Marketwired - Sep 2, 2014) - SmartMetric, Inc. (OTCQB: SMME) Lack of trust of the mobile phone is the biggest impediment to the adoption of mobile phone based payments according to a recent survey of USA consumers. This raises the issue of the long term effects of the most recent data breach of Apples iCloud. While Apple prepares to launch its new mobile payments platform for use with its iPhone 6 phone, the data breach of its integrated iCloud service could be severely hurt by the data theft from its servers. Particularly since trust is the biggest concern and single largest issue stopping the adoption of mobile phone based payments.
A June 2014 consumer survey* found U.S. consumers recognize digital wallets as an alternative to cash-based transactions however usage remains a problem. Security concerns remain the main barrier to adoption (46 percent), followed by lack of usability vs. credit cards/cash (37 percent) and not being top of mind as a form of payment at the time of purchase (32 percent). It has been found amongst survey respondents that when a mobile digital wallet has been used it was used for a sub $50.00 transaction.
Resistance to digital wallets surrounds payment security and the lack of any compelling reason to use them. For example, after security concerns, the second most common reason cited for not using them is, "it's easier to pay with cash, debit or credit cards."
Those in the industry have long said that simply replacing a plastic card with a digital version wouldn't by itself motivate consumer adoption. That appears to be true. The recent iCloud hack will only compound the mobile phone trust issue.
SmartMetric has developed a safer credit and debit card combining an inbuilt inside the card biometric fingerprint reader with an EMV chip card. The SmartMetric focus on adding biometrics to payment cards is a recognition of the power of biometrics in making transactions safer. There are in excess of 1.6 billion EMV chip cards in use globally with new adoption in the USA predicted to add a further 1 billion EMV chip cards to this number.
SmartMetric is a publicly traded technology company that has added a fingerprint scanner built inside EMV payment credit and debit chip cards thereby creating a second layer biometric authentication protection in defending against card fraud. The company is now actively marketing its technology to card issuing financial institutions around the World.
*Thrive Analytics Research Report - 2014 Digital Wallet Usage Study -- some respondents gave multiple reasons.
About SmartMetric, Inc.
SmartMetric, Inc. is a technology company that designs and engineers its own advanced products utilizing the company's expertise in miniaturizing electronics. The company has developed a miniature fingerprint self powered fingerprint scanner and reader that fits inside credit and identity cards that are at the center of SmartMetric Inc.'s advanced biometric products. For more information please visit www.smartmetric.com.
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