Survey Results Are In: Merchants Lag Behind Mobile Growth
We recently conducted the third annual Mobile Payments & Fraud Survey with our partners at CardNotPresent.com and The Fraud Practice, LLC to discover new trends in payments, new technology adoption, and fraud prevention strategies. Results from the survey showed that despite the continued increase in mobile fraud, merchant awareness is actually falling behind.
The research is full of interesting tidbits, and we’ll dive into the findings from time to time on the blog. We were surprised by many of the findings, especially learning that the industry as a whole is further behind on mobile adoption and fraud protection than previous years. We’ve been discussing why this is taking place, and believe that many organizations were ready for mobile a few years back, but let it go when the promise of mobile didn’t quite take off; it was the Internet that took top priority as consumers were already shopping and transacting online. But, now it seems merchants are behind as mobile is quickly moving to be the channel of choice for consumers – over one-third of transactions are now being performed via mobile.
Ask anyone in the industry, and they all say, “We’ve got to be mobile.” However, the fact that less than 40 percent of organizations can detect if a consumer is transacting from a mobile device – and only 17 percent of that group can detect the type of mobile device – shows that we are really in a stage of infancy and the mobile evolution is just starting.
With mobile evolution comes fraud. Our survey found that less than 40 percent of organizations track fraud by channel; that means well over half of organizations don’t know where their fraud originates. Many organizations consider the mobile channel equally (48.4 percent) or less risky (10.4 percent) than the online channel. And, nearly one-third of merchants do not plan to add any additional tools or services to combat fraud in the mobile channel.
While we understand merchants and other organizations in the industry are not fraud experts, we do believe they can no longer keep their head in the sand when it comes to the mobile channel. It really is true when you hear, “everybody’s using it.” Organizations can no longer be complacent – they need to determine what questions to ask their tech teams and ensure that they increase the level of commitment to mobile, because what they did last year is no longer good enough.
There are some good signs in the industry – organizations across the board are employing more tools and services to combat fraud, including those that are through mobile. However, complacency is no longer an option because the mobile channel is here to stay.
To read the full results of the study, download a free copy of the 2015 Mobile Payments & Fraud Survey here.