Consumers want transaction security not just speed

transaction security

Only 2 per cent of consumers believe speed is more important than security when completing an online transaction.

New research explores how and why online commerce has been damaged by fraud, the effects this has had on consumer’s subsequent decisions about transacting online, and the level of trust consumers have in online commerce. The results indicate that favouring speed and convenience over visible security measures, could be a costly mistake for businesses.

David Poole, Business Development Director at MYPINPAD, said: “The latest UK government figures show 90 per cent of large businesses and 74 per cent of SMEs have suffered a security breach. Increasing confidence is not just about preventing fraudulent transactions – it is also about boosting the number of successful transactions. There needs to be a consistent and convenient way for consumers to authenticate themselves for online transactions.”

“This research highlights the need for banks, retail, payment and card schemes to strike a better balance between user experience and security. Consumers are well informed about the risks of transacting online and on mobile. For many, loyalty and a great experience entails peace of mind and tangible security. Multi-factor authentication and transparency around appropriate security practices are key to winning consumer trust.”

Consumers do not believe transaction speed is more important than security – they want to see multi-factor authentication implemented. When asked what online retailers could do to improve the trust consumers have in them: 40 per cent of respondents would like to use cardholder PIN as a means of authenticating an online transaction, half would like to use a combination of both PIN and biometrics and only 2 per cent of consumers believe transaction speed is more important than security.

The research discovered that consumers have huge concerns about fraud with over two-thirds of respondents being concerned about their online banking and shopping security, with one in four respondents being ‘very concerned’. Just under one in three of the survey respondents said they have been a victim of online fraud.

Furthermore, the research has highlighted that trust is being harmed and this is impacting on consumers’ behaviour with 61 per cent stating information about data breaches and online fraud has impacted their trust of online shopping and banking. As a result, 11 per cent shop less and almost one in 10 said they do not use mobile devices to carry out transactions

This survey is the second in a series and a central piece of research for anyone looking to understand the dynamics around consumer trust. It explores what retailers, banks and payments processors could do to retain customer trust, specifically in terms of security, authentication, and the opportunities for those who capitalise it.