Walker Sands Communications have released a study on the changes in retail payments behaviour. Payments, and how they can disintermediate the financial system is a hot topic at the moment.
One area of the payments debate that is gaining a lot of attention is mobile payments. This is unsurprising given the launch of the likes of Apple Pay and Samsung Pay.
However, research from Walker Sands Communication finds that when it comes to security, US consumers are not at all comfortable with the idea of mobile payments. Only 1% of respondents believe that using their phones for payment is the most secure option, this is 2% lower than the number who believe that bitcoin comes out tops when it comes to protecting your data and payment information.
From the blockchain and bitcoin perspective this is an interesting case, given that the two work well as a pair, rather than against one another. One member of the Coinsilium portfolio, Rivetz is bringing together mobile payments and bitcoin technology.
Given the low levels of trust in both bitcoin and mobile payments, to the misinformed this may appear to be a questionable business strategy. However, Rivetz are using the bitcoin technology to deal with the element that has so many US citizens worried – security.
As Steven Sprague, CEO of Rivetz, explained in a recent interview with Max Keiser, the company’s technology allows you to secure the transaction in the phone you already own using European banking security but applying it to bitcoin technology.
Rivetz allows you, explains Steven, to “get all the benefits of your standard point-of-sale terminal in your standard ‘off-the-shelf’ technology”.
Trust in blockchain?
Trust is one of the most important factors when it comes to making, and receiving payments. However whilst the concept of trust is nothing new, how it evolves with technology is.
Neil Telford-Reed, Director of Technology Innovation at WorldPay, explained this idea back in March. Years ago, when his mother was a child the local shop keepers knew who she was and would hand over shopping to be paid at a later date, by her parents, but this scenario of trust and recognition has evolved and “we are now having to use technology to put trust and identification back into payments,” he said.
Understandably however, with new technology comes hesitation and an element of wariness, as we see now with both bitcoin and mobile payments. This no doubt also happened with the introduction of cheques and credit cards.
A recent study from Contact Solutions concluded that trust in brands will be the most important factor for mobile payments in regard to success. It is precisely for this reason that we support the likes of technology companies such as Rivetz.
Rivetz’s technology is able to integrate seamlessly alongside existing, trusted technology present on popular mobile devices, such as some Samsung Galaxys.
Given the poor press attitude towards bitcoin, and the general fear of the unknown , we acknowledge that trust will be a barrier to the adoption of bitcoin and blockchain payment solutions. However, by integrating bitcoin’s greatest advantage, the underlying technology, with already trusted brands and practices, then we are likely to see an increase in adoption rates, and understanding.