TIME TO BANK ON PIN FOR ONLINE CONSUMER AUTHENTICATION, INDICATES NEW REPORT

myPINpad, provider of multi-factor authentication technology for touchscreen devices, has released today a new unique consumer report. PIN: From Brick to Click looks at consumer confidence in PIN as a method of authentication for mobile commerce transactions.

After recently commissioning the unique online survey, which revealed that 90% of frequent online shoppers would use PIN to authorise payment via mobile, the Company has explored further the benefits wider PIN deployment could bring for the banking industry.

The market for paying on a mobile touchscreen device is burgeoning, with more than 40% of all e-commerce in the UK now carried out on a mobile or tablet[1]. Yet, for all the speed and convenience mobile offers, security is still the primary concern for both the industry and the consumer.

Phil King, CEO of myPINpad, said “Banks’ ability to invest in innovation is in many cases inhibited by the need to maintain legacy systems, and by the overhead of regulatory compliance. But, for over 30 years, PIN had been used at ATMs and consumers are familiar with entering a four digit code to access their bank account. Its introduction in the UK reduced face-to-face fraud by 69%[2]. We are now firmly embedded in the age of digital commerce. Having taken the PIN from ATM to the store, consumers are now ready to take the PIN into the digital age.”

An effective authentication system is now essential for security compliance. Financial institutions involved in payment transactions are duty-bound to prevent money laundering, reduce fraud, inhibit identity theft and promote the legal enforceability of their electronic agreements and transactions. They must now balance all of this with not just maintaining but improving the consumers’ experience.

Neira Jones, Advisory Board Member and Ambassador of the Emerging Payments Association, in her foreword in the report says: “While we all strive for innovation and consumers demand more amazing digital experiences, the world of retail is changing and recent data breaches have increasingly put the safety of the consumer and the threat and cost of data compromise on the Board agenda. Organisations able to contribute to the enhanced security of the payments ecosystem, without compromising convenience and with a thorough understanding of consumers’ behaviours and preferences, will be the winners.”

The report offers further insights and analyses what this form of authentication would imply for merchants, consumers and banks.

The full report is available for download here.

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