People are drawn to the convenience of digital payment methods but are wary of how these platforms may leave them vulnerable. More than two-thirds of digital payment users (69%) worry about the security of these platforms, according to new survey data from Visual Objects, a portfolio website.
People’s primary security concern is hacking (41%), followed by fraud (16%) and theft (12%). The data suggests that people remain skeptical of these platforms despite security measures such as two-factor authentication, encryption, and tokenization.
“With data breaches at well-known companies becoming more frequent, people are prioritizing the protection of their personal and financial data,” the report found. “This presents a barrier to the adoption of mobile payment technology.”
Convenience Is a Driving Factor in Digital Payment Use
Despite people’s concerns with digital payment methods, the majority of people (79%) use these platforms at least once a month.
More than half of digital payment users (54%) cited convenience as the top reason they use these platforms, followed by efficiency (20%), security (17%), and necessity (8%).
This suggests that people’s desire for convenience may outweigh the security concerns that they associate with digital payment platforms.
Users may find digital payment platforms more convenient than carrying cash, for example. Visual Objects found that only 30% of people always carry cash, and 43% still carry cash but only inconsistently or at random. Nearly 1 in 10 digital payment users (9%) never carry cash.
Younger Generations Use Digital Payment Methods More Frequently Than Older Generations
Digital payment methods are especially popular among those ages 18-34 and 35-54.
Twenty percent (20%) of people ages 18-34 and 15% of people ages 34-54 use digital payment methods daily, compared to only 2% of people ages 55 and older.
The report also found that users ages 18-34 are more likely to know how much their peers spend on digital payment platforms. This trend may be influenced by younger generations greater comfort with discussing finances in general.
Use of Digital Payment Methods Will Likely Continue to Grow
People are concerned with the vulnerabilities digital payment methods present such as hacking, fraud, and theft.
Despite these concerns, people continue to use these platforms, especially younger generations ages 18-35 and 34-54, on a daily, weekly, and monthly basis.
Visual Objects surveyed 983 digital payment users in the U.S.