The mobile payments market is predicted to grow to $54 billion by 2019, according to a recent report from Javelin. Diebold’s Global Software Research & Strategy team commissioned the independent research paper to explore consumers’ evolving attitudes toward emerging mobile payment solutions, and the findings outline a fascinating overview of both the obstacles to acceptance, and the paths that will move the industry forward.
In the report, “Mobile Wallets and Consumer Adoption: Securing Growth Through Trust,” 51% of respondents indicated that they would prefer a mobile wallet from their primary financial institution (even though the tech companies have been getting all the headlines with their “Pay” initiatives this past year). Additionally, 42% cited security concerns as a reason for why they have not been using mobile payments to date. Sounds like a great opportunity for a company that delivers security and authentication solutions to banks!
We’re in the midst of a rapidly shifting payments landscape, in which the physical and digital worlds of currency are converging faster than ever. In my current role I’m focused on solutions that best take advantages of Diebold’s capabilities when combined with new technology to deliver secure, intuitive, consumer-driven services for our customers. This blending of the secure authentication capabilities of our hardware and software products, combined with the usability of mobile payment capabilities, led to the creation of XPRESSION™ SafeLoad, a secure method of onboarding payment credentials into a mobile wallet at the ATM.
The idea behind SafeLoad is that provisioning mobile wallets at the ATM can (a) provide the ability to ensure that the cardholder is who they say they are (to alleviate fraud) and, (b) provide a safe and trusted environment for downloading mobile wallets and credentials (card-present, PIN secured vs. card-not-present data and customer service calls).
It’s a solution that pushes the boundaries of mobile-ATM integration, to deliver a true omnichannel experience to consumers. And it’s a solution that enables banks to retain ownership over the mobile experiences for their customer. And not only does this enable customers to access cash at the ATM using their mobile phone, it also enables mobile payments anywhere contactless payments are accepted.
Javelin’s research reveals an opportunity for FIs – one that they’ll need to take advantage of now, before competitors (banks and nonbanks alike) sink their teeth deeper into the evolving relationship between consumers and their financial institutions.
“Consumers, although embracing digital technology in many aspects of their life, are not ready to abandon established relationships with traditional service providers as trusted protectors of their money,” the paper notes. Yet there’s no guarantee that will be the case for the long term, unless FIs develop and implement a strategy that places new trends and technologies front and center.
Want to know more about the future of the mobile payments marketplace? Download the full Javelin whitepaper. Or, contact us directly to find out how our Mobile Cash Access solution set, including XPRESSION SafeLoad, can FIT your organization’s needs.