Globally, consumers don't really trust merchants to protect their personal data


Global Consumers Don’t Trust Businesses to Protect Their Financial and Payments Data.

According to new data released by ACI Worldwide and Aite Group in a report entitled “Global Consumer Survey: Consumer Trust and Security Perceptions,” consumers are more concerned about the safety of their financial and payments data stored on a computer compared to their concern about the same with mobile wallet. Only 43% of global consumers trust businesses as far as their financial data is concerned, with 80% considering their mobile wallet data more secure.

An increasing number of consumers are shifting to mobile payments and adapting technology advancements even as online fraud continues to rise. There is a continued shift to shopping on the Internet, which shows that they are not too wary about online payment data security. However, a vigilant approach is required on the part of consumers and merchants, as there is a high risk of mobile fraud.

Related: Mobile Payments Help Your Business Grow.


What Does The Report Say?

Conducted in 20 countries, the study surveyed 6,035 consumers, with 50% men and 50% women. Of these consumers, 5,861 own one payment card or more. This includes a prepaid card or debit or credit card. There is a margin of error in the data from each country of five points.

Consumers are apprehensive of the merchants’ abilities as far as protection of their stored data is concerned. About 60% consumers in India, 54% consumers in the U.S., and 51% in Thailand report 50% confidence in the firm’s ability to protect their stored data.

Computer hacking is one of the top security concerns in the U.S., Germany, and Indonesia. Contrarily, 80% consumers believe their mobile wallet offers greater security for personal and financial data than that secured in computers.

The study further reveals that 65% of consumers say they would not shop with a particular merchant after being victims of data security breach or fraud.

Related: Your Paymment Gateway Impacts Your Customers’ Buying Experience.


They expect organizations to be better prepared to offer data security and are willing to interact with them via their mobile device on the agenda of fraud mitigation. Reports suggest 75% of consumers are keen to receive a call or SMS from online businesses on the subject of fraud mitigation.

The need of the hour is to take proactive steps to raise awareness among consumers about installed security measures. This will help alleviate their concerns, enhanced their experience, and reduce fraud losses. Alternatively, global consumers must proactively adopt the security measures offered by financial institutions to secure their personal data.

Surprisingly, the research data shows that an increasing number of consumers are more inclined toward proactively managing fraud through mobile technology. They are open to talking and texting in this regard.

Undoubtedly, this “willingness” is an open invitation to financial institutions to optimize how they reach out to consumers and engage with them. The broader electronic payments industry, which includes banks, merchants, and other financial intermediaries, should leverage mobile technology to improve customer experience while focusing on reducing data breaches, fraud losses, and operational costs.


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