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Merchants say mobile wallets coming but won’t cut fraud

Summary

Most retailers and e-tailers believe mobile wallets will be widely adopted in the next five years, but only about a third think mobile payments will cut fraud

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Seven in 10 merchants who earn at least some of their revenue online believe mobile wallets will be widely adopted within two to five years, but only a little more than a third expect mobile wallets to lower fraud rates.

Fraud prevention company Kount drew the findings from its annual survey of 800 global merchants, 87 percent of whom do business in North America. Roughly half operate exclusively in e-commerce, while the other half operate in multiple channels.

When asked how long they believe it will be before mobile wallets are widely adopted, 69.9 percent said two to five years, with 12.6 percent reporting mobile wallet usage is already prevalent or will be within the year. More than 13 percent, however, feel it will take more than five years before we see wide adoption.

While 37.4 percent of merchants surveyed said they expect mobile wallets to reduce fraud, almost as many – 33.7 percent – indicated they don’t expect mobile wallets to have much impact. Almost 29 percent feel mobile wallet adoption will actually increase fraud.

From the time Kount began conducting its survey in 2013 to this 2017 installment, the share of merchants who actively support mobile payments has increased substantially, from 54 percent to 80 percent, with only 7 percent of 2017 respondents saying the mobile channel is not important to their company’s revenue.

Kount’s survey was conducted with merchants between April and June 2017, with results released in early July.

See related: New technologies, analytics to battle online fraudWho to call in the first hours after fraud strikes, More infographics

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