Tuesday, June 21, 2022
A J.D. Power Banking and Payments Intelligence report, authored by John Cabell, director, banking and payments intelligence at J.D. Power, and released June 9, suggests digital commerce has eroded responsible spending among U.S. consumers.
Researchers from both firms found older consumers are more cautious and concerned about identity theft, fraudulent attacks and cybersecurity vulnerabilities than their younger counterparts.
Ansgar Steden, chief revenue officer at Utimaco, stated the company's research highlights public perception of cybersecurity solutions. "[B]ulletproof security is only effective when it is perceived to be so by users, so as the report identifies, companies need to be able to combine security with communicating with users about how they are keeping them safe."
Steden further noted that Utimaco researchers found a central paradox in online society, which is that most people are enthusiastic about digital services but deeply concerned about safety when using them. This poses a challenge for digital service providers, he added, which aim to increase efficiency and inclusion through online services.
Utimaco researchers found distrust increased with respondents' age and also found heightened concerns among highly educated respondents and those who had the least amount of formal education. However, most respondents were comfortable accessing Great Britain's National Health Service online, according to the survey, which researchers suggested may have been more related to public trust in NHS than security concerns.
A copy of the report is available at utimaco.com/survey-how-trust-works-digital-world.
J.D. Power Banking and Payments Intelligence researchers conducted a pulse survey to assess digital payments usage and customer experience. While only 2 percent of consumers surveyed used a mobile wallet and only 1 percent used buy now, pay later (BNPL) and person-to-person (P2P) payments, researchers suggested BNPL and P2P schemes make it easier for young customers to overspend.
Researchers noted that consumers under the age of 45 have less understanding about alternative payment methods, which means they are less likely to leverage reward programs or pay off monthly balances each month and are more likely to overdraw accounts. Following are survey highlights:
More information about this survey is available at: www.jdpower.com/business/resources/banking-and-payments-intelligence-report-bnpl-problems.
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