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Mobile Wallets Not Catching On With Consumers Just Yet: Survey Says

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MOBILE WALLET
Pay up: A majority of consumers still say they're not ready for "mobile wallets," according to a recent survey. | alamy

The marriage of shopping and smartphones is a hot topic among business owners right now. But while Americans may love browsing and shopping for deals on their smartphones, it seems they aren't quite ready to use them for actual transactions. A survey by Radius Global Market Research shows the majority of smartphone owners are too concerned about fraud and security issues to be comfortable using their phones as "mobile wallets."

Suprisingly, the age group you'd expect to be most comfortable with the concept of smartphone payments -- consumers under 35 -- is the most concerned about fraud. Overall, 54 percent of those under 35 cite fraud as a major concern, while 64 percent of the self-identified "digitally savvy," consider fraud a major worry. That may be due to the heightened awareness of the digitally savvy, who are more aware of all the different vendors involved in just one mobile transaction -- retailers, device makers, software developers, service providers and financial institutions -- and realize one weak link in that long chain can lead to a security breach, according to Chip Lister, managing director of Radius.

Why it matters to your business: For most small businesses, this is probably good news, since many don’t have a way to accept digital payments right now anyway. But keep an eye on this trend. Smartphone payments offer speed and convenience, and once consumers allay their security concerns, you’re going to need to move quickly to implement smartphone payment technology.

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