What's the security level of mobile transactions?
Consumer Expert Ron Perduss Reveals Insights on Mobile Payments and More
Ron Perduss, our consumer expert, has penned a series of e-books that delve into consumer tips and trends. These digital publications are now available for reading online, offering valuable insights for consumers navigating the modern marketplace.
One of the topics covered in Perduss' e-books is the rise of mobile payments. As more shoppers opt for cards over cash at supermarket checkouts, the convenience of mobile payments using smartphones or smartwatches is on the rise. However, Perduss cautions that while mobile payment providers are generally reliable, there are important considerations related to consumer experience and security.
Consumer Experience
Many providers, such as Merchant One, offer fast onboarding and next-day deposit options. Yet, practical experience suggests that payment settlements can be delayed by two to three days, which may frustrate users expecting instant deposits.
Perduss notes that consumers, particularly from Gen X demographics, prioritize clear, transparent payment terms and dislike hidden fees. They tend to prefer payment methods that integrate well with their routines and offer rewards or loyalty benefits.
Popular payment gateways like Authorize.Net, Braintree, and Klarna provide smooth checkout processes and flexible payment options, improving user experience. However, these options can come with transaction fees and variable pricing models.
Security Concerns
A significant portion of consumers (51% of Gen X) rank security as the top priority in payment methods. Fraud risk is a major frustration, impacting trust and willingness to use certain providers.
Payment providers implement robust fraud detection and prevention tools to combat risks like account takeover, phishing, and authorized push payment fraud. However, the rise of real-time payment systems also increases vulnerability to instantaneous, irreversible fraud with massive global losses.
Providers with advanced fraud management tools (e.g., Worldpay) and those offering secure, fraud-preventive platforms tend to be more trusted by consumers.
In summary, mobile payment providers are reliable in delivering services but are not without challenges. Delays in fund availability and hidden fees can detract from consumer satisfaction, while security remains a critical focus due to increasing fraud risks. Consumers and merchants alike prioritize providers that balance seamless user experience with rigorous security measures to maintain trust.
To delve deeper into these topics and more, tune into Perduss' podcast, "Make or Leave," available three times a week. The podcast can be accessed digitally, and the e-books written by Perduss are also available for reading online.
- Ron Perduss, in his e-books, discusses the integration of smartphones and other gadgets like smartwatches in the rise of mobile payments.
- Consumers, particularly from Gen X demographics, prefer mobile payment methods that offer clear, transparent terms, integrate well with their routines, and provide security features similar to those found in reputable radio technology.
