Trust and Perceived Risk

A major obstacle for the use of a mobile as a payment device is the lack of trust in the security of the technology and the applications. More than half of our sample had reservations with regard to data security and the security and reliability of the mobile device. Looking at the two dimensions of trust separately, there is also a clear pattern with regard to the trust in the trading partner. The large majority of respondents (around 70 %) preferred traditional providers of payment services such as banks and credit card organizations, with the banks being clearly in the lead. People that so far had no experience with mobile payment systems were particularly concerned about the second dimension of trust, namely, the enabling infrastructure. However, both the experienced users and the respondents without experience showed a high sensitivity with regard to the riskiness of mobile payments systems. We did not find a significant difference between the two groups in the total score. A general lack of trust in mobile devices as well as the mobile infrastructure in particular were the major reasons provided in order to explain the lack of trust in the payment service. Interestingly, there appears to be no difference in the evaluation of risk and trust by age. Even the digital natives score high in their perception of risk and do not significantly differ in their assessment from other age groups. Mitigating factors that show the ability to reduce the perceived riskiness of mobile payment systems are an adequate framework of legal protection and the opinion of one's peers.

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