Around the world, the number of consumers that choose to only pay for goods and services with hard cash is starting to dwindle. Instead, mobile and online payments are becoming the preferred way to pay – mainly due to convenience and accessibility. However, many consumers worry about sharing their information online. 59 percent of adults across the globe and 29 percent of Americans are reluctant to engage in mobile or online payments because of this, according to a recent survey conducted by PayPal. For businesses to be able to take steps forward and institute mobile payments, it is essential that identity verification measures be put in place for consumer protection.
The Attractiveness of Mobile Payments
Although over half of those surveyed fear that payment details will be stolen or personally identifiable information accessed, global consumers are still vocal in their desire to have faster and more convenient ways to purchase products. Since an overwhelming number of consumers have a smartphone, being able to pay for items without having to carry cash or credit cards is becoming more and more appealing. For businesses to be successful in the future, figuring out how to develop a mobile payment strategy is key.
In addition to being able to make purchases on a website or using a smartphone, consumers want to be able to walk into a physical store location to seamlessly do the same thing. NFC technology and scanners are the most prevalent options for mobile payments. While these options increase convenience for customers, businesses must work to ensure that their customers’ are protected in order to build the trust needed moving forward.
One of the most important steps a company can take to protect customers’ is to integrate an identity verification and fraud prevention solution into the customer approval process. While businesses most associate ID verification with the financial services industry for compliance purposes, the same technology can be applied to retailers that accept mobile payments. Dynamic knowledge-based authentication questions allow businesses to verify the true identity of a customer before purchases are made. . This benefits consumers by giving them peace of mind knowing that their mobile payment information as well as their identity remains protected.
Other benefits to this approach include:
- New revenue opportunities for businesses as mobile shoppers increase
- Consumer confidence in the security of a company’s mobile commerce platform
- Support for limited input from consumers to minimize the amount of information captured
Identity verification systems work to achieve the needs of both consumers and businesses by offering security and fraud prevention while helping facilitate mobile payments.
IDology has provided clients with a solution-driven approach to identity verification and fraud prevention for over 10 years. Headquartered in Atlanta, GA, IDology offers innovative technology solutions for mobile payments and customer-not-present situations.
1. Leggatt, Helen, “U.S. consumers least concerned about online, mobile payment security,” BizReport, 9 July 2014, Web, 18 July 2014.