Retailers prioritize mobile tech innovation over risk of fraud

ELK GROVE VILLAGE, USA: The 2014 Payment Technology Trends Survey by Mobile point-of-sale (POS) device provider Infinite Peripherals, Inc. (IPC) shows 67 percent of respondents showed overwhelming priority to mobile technology innovation- one of the driving payment technology trends. The risk of fraud and criminal payment activity is a distant second at 38 percent. 35 percent of respondents confirmed that customer preferences will drive retail priorities, above the influence of payment providers (29 percent) or payment legislation (16 percent).

Given this focus on mobility and consumer preferences, it is not surprising that respondents expect swipe on mobile POS device to dominate the payment technology market in the future. It is rated highest by respondents (30 percent) who were asked which single payment technology they thought would lead the market over the next three years.

Swipe at register technology is expected to remain the most utilized payment technology for only 17 percent of respondents in three years. And, when it comes to security, 23 percent of respondents are concerned that swipe at register payments will be unable to keep up with the evolving threat of fraud and theft in the future. Only four percent of respondents are concerned about the ability of swipe on mobile POS device to meet or exceed security expectations in three years.

"Resoundingly, mobile payment technologies are referenced as the most exciting and secure innovation in the sector and are seen as the consumer's champion payment technology," said Andrew Graham, president of IPC. "As consumer demands continue to drive developments in payment technologies, successful retailers will pay close attention not just to what their consumers buy, but how they prefer to buy."

Additional highlights of the survey include:

Key Finding: Swipe on mobile POS device is viewed as the most reliable and secure payment environment in next three years

• 96 percent of respondents expect swipe on mobile POS device to meet or exceed security expectations over the next three years, compared with only four percent who have concerns.

• 23 percent are concerned that swipe at register payments will be unable to keep up with the evolving threat from fraud and theft in the coming three years.

• Only 28 percent of respondents believe fraud losses justify the cost of implementing Europay, MasterCard and Visa (EMV)/Chip & PIN payment technology, the payment technology most frequently promoted as a solution to losses from fraud and theft.

Key Finding: Swipe at register and swipe on mobile POS device currently dominate the market

• 74 percent of respondents have a swipe at register payment option.

• However, 62 percent of respondents have also developed some form of swipe on mobile POS device payment option.

• Over 35 percent of respondents are using EMV/Chip & PIN payment technology.

Key Finding: Swipe on mobile POS device will dominate market in next three years

• 30 percent of respondents expect Swipe on mobile POS device to dominate the payment technology market within the next three years, exceeding all other forms of payment.

• EMV comes in second, with 25 percent of respondents expecting Chip & PIN to become the primary payment technology of retailers.

• Swipe at register technology is expected to remain the most utilized payment technology for only 17 percent of respondents in the next three years.

Key Finding: Consumer use of mobile technology will drive future of payment trends

• 69 percent of respondents see the increased consumer use of mobile technology in everyday life as the single-most influential factor in future payment technology trends.

• 52 percent also see an increasing demand from consumers for mobile shopping as driving payment technology trends in the next three years.