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Consumers Warming to Alternative Payments

But there are still concerns about security, a new survey finds.

US consumers are still somewhat leery, but also more open than in the past, to using alternative methods of payment, according to a new survey conducted by digital security vendor Gemalto and Kelton Research.

The poll surveyed 1,000 US adult consumers about their thoughts on emerging payment technologies. Based on the survey results, Americans are willing to use cash less often, but are still concerned about security when using alternative means. Overall, 75 percent responded that they are willing to use cash less often, the poll found, but 69 and 62 percent are concerned about security when using mobile and contactless card payments, respectively.

Further, 66 percent said they would consider making mobile or contactless card payments more often if they were proven to be secure.

According to the poll, of respondents generally concerned about security, 61 percent are worried about a data breach happening at their bank or at a retailer they frequent. Meanwhile, 90 percent would consider changing banks or would close their accounts right away if their bank was not offering the best security measures.

Almost half of the respondents (44 percent) said they would stop shopping at a retailer right away if that retailer did not accept payments as securely as possible.

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

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Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
11/30/2014 | 10:15:09 PM
Re: What You Don't Know Will Probably Hurt You
Exactly. Who actually could explain how secure their bank is compared to any other? Part of that is because banks want to keep some of their security measures from becoming public knowledge so fraudsters don't find out about them. But we're at a point where every company is vulnerable, and customers are not well informed. I'm not sure how quickly that will change, but it has to.
Becca L
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Becca L,
User Rank: Author
11/29/2014 | 3:31:44 PM
Re: What You Don't Know Will Probably Hurt You
Great point, Jon. It's one thing to say you'll swich banks, it's another to be informed enough to do it, and to ultimately make a smart decision in the switch. Every bank will claim they have the best security measures, a customers might be switching to a less secure bank.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
11/17/2014 | 4:32:08 PM
What You Don't Know Will Probably Hurt You
Consumers might switch retailers and abnks right away if they aren't using the best security measures, but consumers today are so unaware of what those best measures are, so they're not switching any time soon. There's so much public education needed on how to best secure one's online identity and payment credentials. A lot of businesses - never mind consumers - have no clue what EMV is.
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