A UK survey of over 2,000 mobile phone users conducted by Opinion Matters on behalf of Gemalto offers an insight into the current state of consumer thinking around the concept of the mobile wallet.
Only 32 per cent of consumers questioned knew what NFC stands for, and when asked if they have ever used, or would use, their phone as a mobile wallet, 34 per cent said they didn’t or wouldn’t due to security concerns. 31 per cent were not aware they could do this, and 24 per cent said they didn’t trust the concept, as they didn’t fully understand how it works. Despite these various concerns, 35 per cent of respondents were positive about using mobile NFC services, if they knew they were completely secure.
Gemalto says the results of the research show a clear need for further consumer education to dispel the myths surrounding mobile payments using NFC. As when ATMs, chip-and-PIN and eCommerce were first introduced, consumers will need to build trust and become accustomed to mobile NFC by using the technology to learn how it works.
“The reality is that mobile NFC payments are extremely safe, and users have complete control over the value of payments made on their handsets,” says Nassir Ghrous, head of mobile communications at Gemalto UK and Ireland. “The value of mobile NFC transforms the handset into a mobile wallet, where consumers can store credit cards, gift cards, loyalty cards, transport tickets and mobile coupons all securely in one place. Providing unparalleled convenience for the user, it also enables businesses to add additional services and ultimately increases sales.”
Ghrous adds that in Gemalto’s mobile NFC pilots and commercial deployments around the world, consumer satisfaction rates around using NFC to make high-value payments are as high as 90 per cent. “This demonstrates the disparity between consumers who have used mobile NFC payments and love it, and others who are understandably concerned about security, due to a lack of experience and knowledge,” he concludes. 
One of the key issues where education is needed, says Gealto, is around the area of security, but the company adds that NFC payments are as secure as other payment systems currently in use, and points to a number of key features which reinforce the security of the technology.
These include the NFC SIM cards that store consumers’ payment credentials and the payment applications. The SIM cards are certified according to security standards defined by financial services authorities and are comparable to chip-and-PIN security.
Secondly, Gemalto points out that consumers can choose to authenticate transactions by entering a PIN code on the payment application. Consumers can also request the PIN to be entered for all payments, of any amount. Finally, says Gemalto, secure, over-the-air technology for remote management enables immediate remote blocking of the payment application.
Respondents also expressed concern about what would happen if their phone was lost or stolen, with many concerned that someone would make large purchases using their mobile wallet, or acquire their bank details. But in practice, says Gemalto, the payment function can be protected by a personal PIN, and should the handset be lost or stolen, the NFC payment issuer or mobile operator, via its Trusted Services Manager (TSM), can immediately lock or even delete the contactless payment application from the handset remotely.
