On June 14, 2016, Javelin Strategy & Research released a study highlighting the risks and opportunities for financial institutions considering a branded mobile wallet. Predicting that nearly 90 million consumers will be using wallets by 2019, the stream of revenue and transaction data for providers looks irresistible. Banks will have to participate.
"There is going to be a tidal wave of pressure on criminals” to attack mobile wallets, predicts Al Pascual, research director and head of fraud and security for Javelin. He cited lessons learned when Apple Pay debuted in 2014 and more than 100,000 accounts were established with stolen credentials. "The banks were feeling pressure to not be left behind with Apple Pay, so they signed on, and didn't have strong enrollment processes in place," said Pascual.
More secure authentication methods are crucial this time around. Fortunately, the study found that consumers are willing to trade some ease-of-use for better security, which is their top priority.