Mobile payments currently play a major role within ecommerce. Now that almost half of global ecommerce transactions are mobile-based, retailers will almost certainly convert more consumers by implementing clean and robust mobile payment strategies. The opportunity for online merchants to improve user experience and win more sales has never been greater.
Despite this, retailers are still concerned about mobile payments. Payment security and exposure of financial information are the primary worries that corporations have, according to JP Morgan’s Payments Fraud and Control survey. With frequent reports of high-profile data breaches and frequently leaked financial information, it is no surprise that many consumers share this skepticism.
Identity theft was half of m-commerce fraud in 2014
It is certainly true that correctly identifying a user via a mobile device is harder than with other transaction methods. Barclays points out that in 2014, half of mobile commerce fraud was related to either identity theft or erroneous identification. In some cases, attackers would gather enough data to bypass two-factor authentication.
In response, technology is constantly evolving, bolstering consumer confidence in the security methods at play when paying via mobile device.
Cloud-based authentication backs up on-device security
The roll out of Host Card Emulation (HCE) is a notable technological advancement in the payments security landscape. Its introduction facilitates a backup of the on-device Secure Element (SE) to cloud-based storage. HCE relies on multiple identification pillars to assess and authenticate payment activity: intelligence, tokenization, biometrics, and risk analysis.
Apple Pay, for example, uses both SE and HCE technologies for multi-factor authentication, and provides users with both a local and back-end security solution.
Biometrics favored by customers
Apple’s Touch ID feature, used for identity verification on more recent devices, has moved biometric recognition from science fiction into the mainstream market. Customers are increasingly in favor of using such methods, particularly in conjunction with a payment device for two-factor authentication, according to Visa. The global revenue of the biometrics market is expected to grow at 38 percent to USD 2.2 billion by 2024.
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