Fintech News

69% of Digital Payment Users Are Concerned with Security Issues, But Majority Still Use Platforms Monthly

69% of Digital Payment Users Are Concerned with Security Issues, But Majority Still Use Platforms Monthly

Digital payment methods such as Venmo and PayPal continue to gain popularity among consumers. More than three-quarters of digital payment users (79%) report using these platforms at least once a month despite security concerns

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.

5 Concerns Digital Payment Users Have
5 Concerns Digital Payment Users Have
How Do Different Generations Use Digital Payment Platforms
How Do Different Generations Use Digital Payment Platforms

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.”

Read More: Celsius Network and Prime Trust partner to secure depositors funds and offer low-cost credit

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.

Read More: Former U.S. Secretary of Commerce, Penny Pritzker, Doubles Down on Payments Infrastructure Pioneer Finix

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.

Read More: Exchange Traded Concepts Partners with Qraft Technologies to Launch New High Dividend Artificial Intelligence (AI) Powered ETF

Related posts

LiquidX Welcomes Ali Hackett as Chief Revenue Officer

Fintech News Desk

Global Clean Energy Holdings, Inc. Receives Funding From ExxonMobil to Advance Renewable Diesel Production and Camelina Expansion

Fintech News Desk

Coupa To Offer Hsbc Virtual Cards To European Businesses

Fintech News Desk