Most Consumers Aren't Concerned About Security in mCommerce. Should They Be?
In the Mobile Payments & Fraud: 2017 Report, online merchants said by a more than 2 to 1 margin that their customers are much more concerned with ease-of-use than security.
Interestingly, in a 2016 survey by SmartMetric, 80% of US credit card users said they were concerned about credit card fraud and identity theft.
Turns out that this is a boomerang discussion, one that keeps coming back again and again. It’s been studied over and over ever since online businesses first struggled with the tradeoff between speed and security.
It’s obvious that online shoppers have a need for speed as well as a low tolerance for complexity. The usual consequence of their impatience is the dreaded “cart abandonment.” The 2016 cart abandonment rate was about 70% (both desktop and mobile), so it’s clearly a big problem.
However, just 27% of US adults said they felt the checkout process was too long or too complicated. Rather, most of those surveyed—over 60% —bailed due to extra costs added during the checkout process, like shipping, taxes or other fees.
Of course, the ultimate goal is to balance speed with security and offer the best of both worlds. With more and more online shoppers going mobile—39% of all retail eCommerce is expected to be generated from mobile devices in 2018—this issue is magnified.
Here’s what we know from Mobify's "50 Must-Know Mobile Commerce Statistics and Facts":
- Nearly 1 in 3 mobile shoppers abandon a transaction if the site is not optimized for mCommerce.
- 57% of users say they won’t recommend a business with a bad mobile site.
- 41% of shoppers shift to a competitor’s site after a bad mobile experience.
What’s more, a mere 1 second delay in page response can result in a 7% reduction in conversions. As noted earlier, many factors affect mobile conversions, but slow checkout times surely play a significant role in the much lower conversion rate for smartphones.
|Conversion Rates by Platform||2017|
What if a merchant with $50 million in annual sales who gets 20% of their revenue from mobile could improve their smartphone conversion rate to be on par with their traditional conversion rate? The impact would be stunning!
The smartphone (mobile) share of revenue could soar from $10 million to as much as $32.7 million!
If “slowness kills” when it comes to mobile commerce, then fast fraud prevention is more critical than ever. Enterprise-class solutions like Kount Complete integrate mobile fraud prevention into an all-in-one platform to streamline mobile checkout and improve mobile conversion rates:
- Lightning-fast 300 millisecond average transaction processing time.
- Reduce manual review rate to 1-2% of orders (with no manual reviews at all for businesses like online games, digital goods, etc.).
As you strive to balance the tradeoff between speed and security for mobile transactions, having as much knowledge as possible can help you better prepare for the unique challenges that mCommerce presents.
The growth of mobile has led to increasing security attacks and threats for the mobile app industry. Download the eBook "The Download on Mobile App Fraud" to learn about use cases in mobile apps, mobile checkout abandonment issues, and how to prevent mobile app fraud while increasing conversions.