A new survey conducted by Juniper Research has found that more than 40 percent of iOS users in the U.S. consider themselves unlikely to use facial recognition as a payment security technology. This suggests that a core use case for the iPhone X’s main security feature may struggle to gain traction among consumers, the consultancy says.
Contactless payment users considered fingerprint sensors and voice recognition more appealing authentication methods, with 74 percent and 62 percent, respectively, saying they are likely to use these technologies.
The survey asked 500 U.S. and 500 U.K. smartphone users about mobile banking and contactless payments.
- Overall the number of contactless payment users grew by only 2 percent year-on-year in the U.S., with most deployments coming from smartphone OEMs (original equipment manufacturers).
- Contactless user numbers in the card-first U.K. grew by 12 percent.
The survey shows that while mobile contactless payments usage will grow in both markets, existing users will fuel most of that growth:
- In the U.S., 73 percent of OEM-Pay users (Apple Pay, Samsung Pay, Android Pay etc) expect to increase their usage, but only 39 percent of non-users expect to start using mobile contactless payments.
- This proportion is even lower in the U.K., with only 26 percent of non-users reporting that they will start to use these services.
Security Still a Big Obstacle for Many
The survey found that, while contactless payment non-users have fewer concerns overall, 32 percent are worried about transaction security, a far higher proportion than users (14 percent). Mobile banking has a similar pattern, with 30 percent of non-users concerned about the security of transactions, compared with 10 percent of users.
“Transaction security is a key barrier for mobile financial services adoption,” says research author James Moar. “Addressing these concerns will bring many consumers to the point where they will consider using such services.”
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