NOTTINGHAM, U.K. (12/11/13)--The proliferation of new payment channels was cited as the biggest issue for the payment and card industry in a survey by Compass Plus, an international provider of retail banking and electronic payments software to processors and financial institutions.
About 28% of respondents cited new payment channels as the No. 1 payments issue. A closely related area--the growth of near field communication/contactless technology--was the second-most cited issue, mentioned by 26% of respondents.
The annual survey--which was conducted at the international CARTES Secure Connexions Event 2013 in Paris. About 70 executives representing financial institutions, mobile operators, payment processors and other industry professions responded.
Credit unions monitoring mobile payments issues will be interested to learn that mobile payments offer the biggest opportunity for card providers in 2014, according to the survey. At the same time, many respondents said they hedged about the immediate prospect for mobile payments. About 40% of respondents do not expect the mass adoption of mobile payments to take place for two to three years.
About 28% of survey respondents said mobile would account for 20%-30% of payment channels in two to three years, and nearly a quarter thought mobile would be used for 30%-40% of payments.
About 32% of executives expected the mass adoption of mobile payments to take place within one to two years, according to the survey.
The wide range of forecasts for mobile's adoption may be explained by its quick rise on the financial industry's radar. It did not make the top five in Compass Plus' 2012 survey.
Card-not-present fraud was cited by 34% of respondents as posing the greatest payment fraud threat, followed by Internet banking and phishing, both at 24%.