2016_MobilePaymentsFraudSurvey_Report

Mobile Payments
& Fraud: 2016 Report
PRESENTED BY
© 2016 Kount. All rights reserved. Do not copy, reproduce, or duplicate without written permission. Please email requests to: don.bush@kount.com.
PRESENTED BY

Mobile Payments & Fraud: 2016 Report PRESENTED BY Kount | The Fraud Practice | CardNotPresent.com
2
EXECUTIVE SUMMARY .......................................................................................................................... 3
SURVEY RESPONDENTS ...................................................................................................................7
Merchants.....................................................................................................................................11
Non-Merchants..............................................................................................................................17
MOBILE COMMERCE: GROWING IN SIGNIFICANCE AND SUPPORT ..............................................23
Importance of Mobile Channel for Overall Growth ..........................................................................25
Support for the Mobile Channel .....................................................................................................30
Support for Mobile Features...........................................................................................................35
Support for Mobile OS Platforms....................................................................................................40
Support for Mobile Wallets ............................................................................................................44
Revenue from the Mobile Sales Channel .......................................................................................51
MOBILE PREFERENCES, PRIORITIES AND OBSTACLES .................................................................56
Resources Employed to Enable Mobile eCommerce.......................................................................57
How the Mobile Channel Adds Value..............................................................................................60
Preferred Forms of Payment for Mobile Transactions......................................................................64
Key Geographic Regions for Mobile Efforts.....................................................................................68
Obstacles to Adoption for Mobile Commerce.................................................................................71
Importance of Detecting Mobile Devices.........................................................................................74
Ability to Detect Mobile Devices in Transactions..............................................................................78
MOBILE RISK FACTORS AND FRAUD TOOLS...................................................................................81
Is Mobile Riskier?...........................................................................................................................83
Are Merchants Tracking Fraud by Channel?.............................................................................86
Is Mobile Fraud Increasing or Decreasing?..............................................................................88
Is Mobile Fraud Coming from Domestic or International Transactions? ....................................91
Factors Influencing Risk Management............................................................................................93
Obstacles to Managing Mobile Fraud Risk ..............................................................................94
The Impact of Data Breaches..................................................................................................95
The Impact of EMV.................................................................................................................97
Preferred Authentication Methods...........................................................................................99
FRAUD TOOLS FOR MOBILE ECOMMERCE ..................................................................................100
Does the Mobile Channel Require Additional Tools?.....................................................................102
Tools Deployed to Combat Mobile Fraud......................................................................................104
Top Tools and Techniques for Fighting Mobile Fraud.....................................................................109
CONCLUSIONS...............................................................................................................................111
ABOUT THE SPONSORS ...............................................................................................................113

3
BACK TO TOP
The Mobile Payments
and Fraud Survey: 2016
Report is the fourth annual
installment of the world’s
largest study focused on
payment and risk trends in
the mobile channel.
After four consecutive years
of the Mobile Payments and
Fraud Survey there are several
long-term trends that have
persisted, and comparing
survey results over this time
frame shows substantial
growth in many areas as well.
This includes an increase in
the importance or significance
organizations place on the
mobile channel, growing
acceptance and support of
mobile payments, platforms
and features, as well as growth
in the revenue organizations
are generating from the
mobile channel.
While the Mobile Payments
and Fraud Survey measured
increases in mobile channel
support and revenue each
year of the study, the rate of
growth began to slow down
in last year’s survey after
significant increases between
2012 and 2013. Unsure if
this would be a trend that
continues, this year’s study
quelled concerns that mobile
growth might settle in at more
modest rates, as merchants
actively supporting the
mobile channel increased
from 69% to 82%, and the
share of merchants earning
at least 30% of their revenue
in the mobile channel nearly
tripled (from 9% to 29%),
just since last year.
Executive Summary

4
BACK TO TOP
One trend that has persisted
in each year of the survey is
the disparity in mobile channel
support and resources
between higher and lower
revenue merchants. Smaller
merchants, however, are
continuing to invest in the
mobile channel and close the
gap, and this has contributed
to the increase in support
for the mobile channel and
increase in mobile revenue
overall. Over 68% of the
largest merchants, those
earning more than $50
million per year in revenue,
consider mobile to be very
important to their growth
and success, compared to
54% of merchants in the
lowest revenue grouping
(those earning less than
$5 million per year). More
than nine out of every ten
merchants in the highest
revenue category supports
the mobile channel today,
compared to eight-in-ten
merchants earning less than
$5 million annually. There
was significant growth in
support for the mobile channel
amongst these lower revenue
merchants, however, nearly
doubling from 43% to 80%
in the past year. Larger
merchants are still further
ahead in terms of mobile fraud
management, as they are
using 4 tools or services on
average compared to less than
3 tools or techniques for lower
revenue merchants.
In addition to the growing
acceptance and support for
mobile payments overall,
this annual study has
shown notable increases
in the support of various
mCommerce features and
capabilities, as well as mobile
wallets, operating systems
and platforms. Less than
half of merchants, 45%,
were able to tell whether a
transaction was coming from
a computer or mobile device
in 2012, but this is up to 62%
of merchants today. Nearly
60% of merchants have a
dedicated mobile website and
55% have a mobile app that
supports making purchases
online, up from about one-
third of merchants with a
dedicated mobile site and
one-fifth of merchants with a
mobile app for online shopping
at the time of the inaugural
Mobile Payments and Fraud
Survey. More than 87% of
merchants today support
either a dedicated mobile
site, mobile app for online
shopping, or both.
Executive Summary

5
BACK TO TOP
Support for mobile wallets
increased modestly
while over the past three
years support for mobile
payments in-store has
stayed relatively flat. More
than one-third of merchants
accept mobile wallets today,
up from less than one-in-four
last year. More merchants
started accepting Apple Pay
and Android Pay between
the two most recent editions
of the Mobile Payments and
Fraud Survey, but merchant
support for mobile payments
at the physical point-of-sale fell
slightly from last year, about
down to the levels observed in
2013. The share of merchants
that support a mobile app with
features for in-store shopping
fell by more, about 5%, to the
lowest rate measured since
the inaugural survey.
Mobile payments have
become more complicated
since the inaugural Mobile
Payments and Fraud Survey,
with several new consumer
mobile payment options on
the market today compared to
when this study first launched
in 2012. The survey has
changed over the years to
keep up with new payment
choices and features, but
organizations have shown
increasing levels of concerns
with keeping up with these
changes. Each year of the
survey, organizations have
been increasingly more likely
to say that “Managing the
complexity of new payment
types” is the biggest obstacle
to growing mobile adoption.
This increased just slightly
from 20% to 21% this year,
after more than doubling from
8% two years ago. The timing
of increased concerns around
the complexity of managing
new mobile payment types
coincides with the flat to
declining level of support for
mobile payments in-store.
It may be that some
merchants are taking a
“wait-and-see” approach.
Executive Summary

6
BACK TO TOP
The increasing concern around
managing payments and
making it easier for consumers
to transact using their mobile
devices started with last
year’s survey and continued
into this year as well. It is
possible this has also had an
impact on how much attention
organizations are able to
focus on mobile channel
risk. Organizations that view
consumer security concerns
as the biggest obstacle to
growing mobile adoption have
declined for two consecutive
years, and although the
share of organizations most
concerned with managing
fraud risk in the mobile
channel increased from last
year, it is still down 4% versus
two years ago. Organizations
are less likely to say it is
important to be able to detect
mobile devices compared to
last year, and nearly 40% of
merchants say the biggest
issue they have with mobile
fraud is determining if they
even have a fraud problem.
This is the second year in a
row merchants have become
increasingly more likely to say
that standard eCommerce risk
management tools are fine
for the mobile channel and no
specialized tools or services
are required. Over 43% of
merchants admit they do
not know what share of total
fraud comes from the
mobile channel.
This isn’t to say merchants and
organizations did not make
any improvements related
to mobile risk management.
Whereas 40% of merchants
reported using just one tool or
service for managing fraud in
the mobile channel last year,
this is down to one-third of
merchants today. One-third
of merchants are using four
or more tools or services to
manage risk in the mobile
channel today, compared to
only 21% that used three or
more last year.
Across the four years of the
Mobile Payments and Fraud
Survey there are many signs of
a growing and maturing mobile
market, but with reduced
concerns or focus on mobile
risk management, stagnate
support for mobile payment
features in-store, and more
merchants trying to manage
mobile channel fraud only with
traditional eCommerce tools,
there is continued room for
growth and development.
Executive Summary

PRESENTED BY Kount | The Fraud Practice | CardNotPresent.com
Mobile Payments & Fraud:
2016 Report
Survey Respondents

8
BACK TO TOP
The fourth annual Mobile Payments and Fraud Survey reached a variety of organizations
representing all of the primary players in the payments ecosystem: merchants, fraud and
eCommerce service providers, acquirers, card associations and card issuers. Whereas merchants
represented slightly more than half of the total survey population in each of the first three years of
the Mobile Payments and Fraud Survey, the share of all other types of organizations represented
each grew by about 2% from last year, and merchants now comprise 42% of the survey.
Survey Respondents - Types of Organizations
Service
Provider
42.0%
Card Issuer
5.7%
Merchant
42.3%
Acquirer
6.3%
Card Association
3.7%
Types of
Organizations
Surveyed

9
BACK TO TOP
Across the five types of organizations surveyed, respondents represent businesses of all sizes.
Similar to previous years, the majority of organizations fall under the highest or lowest revenue
category. About 41% of organizations surveyed generate more than $50 million per year, while
30% earn less than $5 million and about 29% have annual revenues somewhere in between. This
consistent distribution of survey respondents across both revenue and type of business year-
to-year helps to validate that the trends measured over the past four years of this study reflect
growth and change in the mobile channel overall, rather than being strongly influenced by a
significant change in the survey sample population.
Survey Respondents - Annual Revenue
> $50 million
40.6%
$25-50 Million
7.4%
< $5 Million
30.0%
$5-10 Million
10.9%
$10-25 Million
11.1%
Annual Revenue
(All Respondents)

10
BACK TO TOP
Merchants surveyed tended to have higher annual revenues while service providers had lower
revenues relative to organizations overall. 48% of merchants surveyed reported earning more than
$50 million per year, while service providers were the type of organization most likely to be in the
less than $5 million annual revenue range, at about 40%. Card issuers were the most “top heavy”
type of organization surveyed, with 75% earning more than $50 million and just 5% earning less
than $5 million annually.
Survey Respondents - Annual Revenue
Annual Revenue
(Organization Type) Acquirer Card
Association
Card
Issuer Merchant Service
Provider
Less than $5 Million
$5 Million - $10 Million
More than $50 Million
13.6%
4.5%
18.2%
13.6%
50.0%
15.4%
15.4%
7.7%
0.0%
61.5%
5.0%
5.0%
15.0%
0.0%
75.0%
27.7%
7.4%
10.8%
6.1%
48.0%
39.5%
15.6%
10.2%
9.5%
25.2%

11
BACK TO TOP
Nearly half of merchants surveyed were in the group with the highest annual revenue (more than
$50 million), but were very diverse in terms of the goods or services sold in the Card Not Present
Channel. There were 10 vertical markets represented by at least 10% of merchant respondents
while no more than one-quarter-of merchants sold any one type of good or service online.
In each year of the Mobile Payments and Fraud Survey, merchants have been most likely to be
selling Apparel & Accessories online or in the mobile channel. While that still holds true this year,
the share of merchants surveyed selling Apparel & Accessories decreased by nearly one-half,
down to 23%. The share of merchants selling Computers/Electronics increased slightly and
merchants selling Digital Goods nearly doubled compared to the previous two years of the study,
with each product category being sold by 22% of merchants overall. The share of merchants
in the Health/Beauty and Housewares/Home Furnishings e-retail industries each declined from
around 23% to 16% from last year to this year’s survey.
Survey Respondents - Merchant Type
Types of Goods/Services Sold 2012 2013 2014 2015
Apparel/Accessories 30.8% 46.3% 45.4% 23.0%
Computer/Electronics 13.5% 20.6% 20.7% 22.3%
Digital Goods 8.3% 12.0% 12.4% 22.3%
Health/Beauty 14.1% 19.7% 23.1% 16.2%
Housewares/Home Furnishings 16.7% 24.5% 23.4% 15.5%
Jewelry 13.5% 19.7% 17.3% 15.5%
Sporting Goods 12.2% 14.0% 14.6% 14.2%
Toys/Hobbies 14.1% 15.2% 17.5% 12.8%
Food/Drug 16.0% 14.6% 13.5% 11.5%
Books/Music/Video 14.7% 15.2% 15.1% 10.1%
Professional Services 0.0% 0.0% 0.0% 8.8%
Gaming 6.4% 7.2% 9.4% 8.1%
Specialty/Non-Apparel 14.1% 15.8% 13.% 8.1%
Travel 3.2% 3.8% 4.9% 8.1%
Financial Services 2.6% 3.8% 1.8% 7.4%
Flowers/Gifts 8.3% 8.6% 7.6% 6.8%
Office Supplies 10.9% 9.2% 9.9% 6.8%
Dating/Social Sites 0.0% 1.2% 1.3% 4.7%
Other Services 3.2% 9.3% 6.3% 4.7%
Telecom 1.9% 5.8% 3.4% 4.7%
Other 0.0% 0.0% 0.0% 4.7%
Automobiles/Auto Parts 0.0% 0.0% 6.1% 3.4%
Hardware/Home Improvement 14.1% 16.4% 16.6% 3.4%
Mass Merchant 2.6% 5.0% 7.2% 3.4%
Money Movement 0.0% 0.6% 0.2% 3.4%
Direct Response 1.9% 1.3% 0.7% 2.7%
Insurance 1.9% 1.8% 1.1% 2.7%
Alcohol/Tobacco 0.0% 0.0% 3.1% 1.4%

12
BACK TO TOP
About half of merchants overall are in the largest revenue grouping, greater than $50 million
annually, and there are twenty vertical markets where at least half of merchants are large or
enterprise organizations. This includes each of the five most represented industries in this
year’s study: Apparel & Accessories, Computers/Electronics, Digital Goods, Health/Beauty, and
Housewares/Home Furnishings. There are twelve merchant segments where at least one-fifth
of merchants are in the lowest revenue category, less than $5 million per year. This includes
Apparel & Accessories, Jewelry, Books/Music/Video, Professional Services, Dating / Social Sites,
and Telecom industries.
Survey Respondents - Merchant Revenue
Types of Goods/Services Sold
(Merchant Revenue)
< $5
Million
$5 - 10
Million
$10 - 25
Million
$25 - 50
Million
> $50
Million
Apparel/Accessories 20.6% 11.8% 8.8% 5.9% 52.9%
Computer/Electronics 18.2% 12.1% 9.1% 0.0% 60.6%
Digital Goods 15.2% 6.1% 21.2% 6.1% 51.5%
Health/Beauty 12.5% 8.3% 8.3% 0.0% 70.8%
Housewares/Home Furnishings 8.7% 4.3% 17.4% 0.0% 69.6%
Jewelry 21.7% 13.0% 8.7% 0.0% 56.5%
Sporting Goods 14.3% 9.5% 1 9.0% 0.0% 57.1%
Toys/Hobbies 10.5% 5.3% 5.3% 15.8% 63.2%
Food/Drug 11.8% 0.0% 11.8% 0.0% 76.5%
Books/Music/Video 20.0% 6.7% 26.7% 13.3% 33.3%
Professional Services 38.5% 0.0% 23.1% 0.0% 38.5%
Gaming 8.3% 0.0% 16.7% 0.0% 75.0%
Specialty/Non-Apparel 16.7% 8.3% 8.3% 0.0% 66.7%
Travel 16.7% 16.7% 0.0% 16.7% 50.0%
Financial Services 36.4% 0.0% 9.1% 0.0% 54.5%
Flowers/Gifts 10.0% 0.0% 20.0% 0.0% 70.0%
Office Supplies 10.0% 0.0% 20.0% 0.0% 70.0%
Dating/Social Sites 42.9% 0.0% 14.3% 0.0% 42.9%
Other Services 28.6% 0.0% 14.3% 0.0% 57.1%
Telecom 42.9% 0.0% 0.0% 0.0% 57.1%
Other 14.3% 28.6% 14.3% 14.3% 28.6%
Automobiles/Auto Parts 20.0% 0.0% 0.0% 0.0% 80.0%
Hardware/Home Improvement 20.0% 0.0% 40.0% 0.0% 40.0%
Mass Merchant 20.0% 0.0% 20.0% 0.0% 60.0%
Money Movement 20.0% 20.0% 20.0% 0.0% 40.0%
Direct Response 0.0% 25.0% 0.0% 25.0% 50.0%
Insurance 0.0% 0.0% 50.0% 0.0% 50.0%
Alcohol/Tobacco 0.0% 0.0% 50.0% 0.0% 50.0%

13
BACK TO TOP
The majority of merchants participating in the Mobile Payments and Fraud Survey each year have
had five or more years of experience selling in the online channel, and the share of merchants with
this level of experience continues to grow. Up from 63% in last year’s survey and 60% two years
ago, nearly 70% of merchants have at least five years’ experience with eCommerce. Merchants
that were new to eCommerce, with less than one year of experience online, fell from 14% to 9%
of survey respondents, and the share of merchants with one to four years’ experience selling
online stayed flat relative to last year’s survey.
Survey Respondents - Merchant Experience
3-4 years
13.5%
5+ years
68.9%
< 1 year
8.8%
1-2 years
8.8%
Years Selling Online
(Merchants)

14
BACK TO TOP
Apparel/Accessories 8.8% 14.7% 11.8% 64.7%
Computer/Electronics 12.1% 9.1% 9.1% 69.7%
Digital Goods 3.0% 6.1% 12.1% 78.8%
Health/Beauty 4.2% 8.3% 4.2% 83.3%
Housewares/Home Furnishings 4.3% 4.3% 4.3% 87.0%
Jewelry 0.0% 8.7% 17.4% 73.9%
Sporting Goods 4.8% 9.5% 9.5% 76.2%
Toys/Hobbies 0.0% 10.5% 5.3% 84.2%
Food/Drug 5.9% 0.0% 11.8% 82.4%
Books/Music/Video 0.0% 13.3% 20.0% 66.7%
Professional Services 15.4% 7.7% 0.0% 76.9%
Gaming 8.3% 0.0% 8.3% 83.3%
Specialty/Non-Apparel 8.3% 0.0% 8.3% 83.3%
Travel 0.0% 16.7% 8.3% 75.0%
Financial Services 18.2% 18.2% 0.0% 63.6%
Flowers/Gifts 0.0% 0.0% 0.0% 100.0%
Office Supplies 0.0% 10.0% 10.0% 80.0%
Dating/Social Sites 0.0% 0.0% 0.0% 100.0%
Other 0.0% 14.3% 14.3% 71.4%
Other Services 14.3% 0.0% 14.3% 71.4%
Telecom 14.3% 14.3% 0.0% 71.4%
Automobiles/Auto Parts 0.0% 20.0% 0.0% 80.0%
Hardware/Home Improvement 20.0% 0.0% 20.0% 60.0%
Mass Merchant 0.0% 0.0% 0.0% 100.0%
Money Movement 0.0% 20.0% 20.0% 60.0%
Direct Response 0.0% 0.0% 50.0% 50.0%
Insurance 25.0% 0.0% 0.0% 75.0%
Alcohol/Tobacco 0.0% 0.0% 0.0% 100.0%
The seasoned eCommerce experience amongst merchants participating in the Mobile Payments
and Fraud Survey goes across all types of goods or services an organization may sell in the online
or mobile channel. At least half of merchants from each of the 28 vertical markets represented
has a minimum of five years’ experience selling online, including 23 industries where at least
two-thirds and 15 industries where at least three-quarters of merchants are this tenured.
Survey Respondents - Merchant Experience
Years Selling Online
(Merchant Type) < 1 year 1 - 2 years 3 - 4 years 5+ years

15
BACK TO TOP
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Nearly 93% of merchants surveyed operate in the online channel and 47% operate in the mobile
channel, increasing from 70% and 40%, respectively, last year. More than two-thirds of merchants
surveyed operate in two or more channels, and 42% are active in three or more channels. Just
over 25% of merchants surveyed this year operate in the online channel only, while 46% operate
in both the online and mobile channels and less than 1% of merchants operate in the mobile
channel exclusively.
Survey Respondents - Merchant Sales Channels
Sales Channels (Merchants)
36.1%
38.5%
16.4%
46.7%
92.6%
n Brick & Mortar
n Call Center
n Mail Order
n Mobile
n Online

Mobile Payments Fraud: 2016 Report PRESENTED BY Kount | The Fraud Practice | CardNotPresent.com
16
BACK TO TOP
A strong majority of merchant respondents, 91%, are involved with risk management
decisions within their organization, including 41% who indicate they are ultimately responsible.
This is a significant increase from last year’s survey when just 23% of merchants respondents
were ultimately responsible for risk management and 61% at least influenced risk
management decisions.
Survey Respondents - Merchant Involvement with Risk
Influence
decision
50.0%
Not involved
with risk
9.0%
Involvement with
Risk Management
(Merchants)
Ultimately
responsible
41.0%

17
BACK TO TOP
Merchants represented over 42% of the Mobile Payments and Fraud Survey while fraud and
eCommerce service providers comprised another 42%, card associations and issuers made
up 10%, and acquirers represented 6% of the survey population. Similar to merchants, the
distribution of all other types or organizations by revenue was towards the highest and lowest
groupings, with 32% earning less than $5 million and 35% more than $50 million annually.
Survey Respondents - Non-Merchant Revenue
Annual Revenue
(Non-Merchants)
$5 Million
31.70%
$25-50 Million
8.4%
$50 Million
35.1%
$5-10 Million
13.4%
$10-25 Million
11.4%

18
BACK TO TOP
There are many types of services payment and risk providers, issuers and other organizations
may offer to facilitate payment and risk management in the Card Not Present channel. The most
common services offered by organizations other than merchants surveyed in this year’s Mobile
Payments and Fraud Survey were: Identity Authentication or Verification, Consulting Services
(Payments or Fraud), Analytics and Technology Services for Fraud. There are seven services
offered by at least one-third of non-merchant organizations surveyed to additionally include
eCommerce Platforms, Operational Solution Providers, and Gateways.
Survey Respondents - Non-Merchant Type
Services Offered
(Non-Merchant) 2012 2013 2014 2015
Analytics 28.0% 38.7% 43.1% 39.6%
Consulting Services (Payments/Fraud) 30.1% 22.9% 29.7% 40.1%
Data Sharing 10.8% 24.4% 17.3% 20.3%
eCommerce Platform 47.3% 36.0% 41.1% 37.1%
Fraud Scoring 26.9% 13.6% 27.7% 28.2%
Gateway Business 30.1% 19.3% 28.7% 33.2%
Identity Authentication or Verification 41.9% 20.9% 35.6% 41.1%
Media 11.8% 21.6% 15.8% 10.4%
Operational Provider - Solution 38.7% 37.3% 44.1% 35.6%
Technology Services - Fraud 30.1% 18.9% 32.7% 38.1%

19
BACK TO TOP
Broken down by type of organization, it is service providers and card associations who are most
diverse in terms of the variety of services they offer or support. At least 40% of service providers
surveyed offer Identity Authentication or Verification, Consulting Services (Payments or Fraud),
or Technology Services for Fraud. Card issuers are the most likely to support Analytics while
acquirers are the most likely to offer Gateway services.
Survey Respondents - Non-Merchant Type
n Analytics
n Consulting Services (Payments or Fraud
n Data Sharing
n eCommerce Platform
n Fraud Scoring
n Gateway Business
n Identity Authentication or Verification
n Media
n Operational Provider - Solution
n Technology Services - Fraud
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Acquirer Card
Association
Card
Issuer
Service
Provider
Services Offered (Organization Type)

20
BACK TO TOP
More than three-quarters of all non-merchant survey respondents actively manage services or
support the online sales channel, and nearly two-thirds manage or support the mobile sales
channel. While those who manage the online sales channel increased slightly from last year, the
share of respondents that actively manage the mobile sales channel increased by more than 10%
from last year and by 20% compared to two years ago.
Survey Respondents - Non-Merchant Sales Channels Managed
Sales Channels Managed
(Non-Merchant) 2012 2013 2014 2015
Brick Mortar 34.1% 44.9% 50.8% 35.6%
Call Center 28.6% 28.3% 31.8% 30.5%
Mail Order 16.5% 19.7% 16.7% 16.4%
Mobile 53.8% 44.4% 55.3% 65.6%
Online 72.5% 63.1% 75.2% 77.4%

21
BACK TO TOP
Separating non-merchant organizations by type, we see that more than 70 percent of service
providers and over 80 percent of acquirers surveyed manage or support the online sales
channel, while at least half of all non-merchant organizations manage the mobile sales channel.
Respondents representing card associations and issuers were the most likely to actively manage
the mobile sales channel, while respondents representing acquirer or processors were the most
likely to manage the brick-and-mortar sales channel.
Survey Respondents - Non-Merchant Sales Channels
n Brick Mortar
n Call Center
n Mail Order
n Mobile
n Online
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Acquirer Card
Association
Card
Issuer
Service
Provider
Channels Managed (Organization Type)

22
BACK TO TOP
Over 80% of payment and risk service providers, acquirers, card associations and issuers at
least influence risk management decisions within their organizations, while 22% are ultimately
responsible. Of all organizations surveyed, acquirers were the most likely to be ultimately
responsible or influence risk management decisions at 95%, while service providers were the
least likely at 78%.
Survey Respondents - Non-Merchant Involvement with Risk
Influence
decision
59.3%
Not involved
with risk
18.6%
Involvement with
Risk Management
(Non-Merchants)
Involvement with Risk
Management (Organization Type) Acquirer Card
Association
Card
Issuer
Service
Provider
Don’t get involved with risk 5.3% 16.7% 11.1% 21.9%
Influence decision 68.4% 58.3% 72.2% 56.3%
Ultimately responsible 26.3% 25.0% 16.7% 21.9%
Ultimately
responsible
22.0%

Mobile Payments Fraud:
2016 Report
Mobile Commerce:
Growing In Significance and Support

24
BACK TO TOP
Across the four consecutive years of the
Mobile Payments and Fraud Survey, one of
the most important and apparent recurring
trends is growth in the mobile channel; this
being in terms of diversity, significance,
support and revenue.
Mobile payments are diverse in that they can
be referring to mobile wallets used at the
physical point-of-sale or mobile eCommerce
(mCommerce) payments, which can then be
app or mobile web browser-based.
Since the inaugural survey in 2012, new
mobile payment methods and providers
have both entered and left the market,
but competition has increased overall,
right along with mobile feature support
and revenue.
The survey has been updated throughout the years to keep up with the dynamic mobile market,
and this section focuses on current, continuing and changing mobile commerce trends, including:
• How much emphasis do organizations put on mobile regarding their growth plans?
• How many organizations support mobile overall, and how many plan to?
• What mobile features or capabilities do merchants support?
• What types of mobile payments and operating systems do merchants accept and support?
• How significant is mobile channel revenue?
Mobile Commerce: Growing In Significance and Support

25
BACK TO TOP
Each year of the Mobile Payments and Fraud Survey, all survey respondents were asked
how important they thought a mobile strategy was to their overall growth in the coming year,
regardless of whether or not they were active in the mobile channel at the time of the survey.
Across all types of organizations as well as merchants, the share that considered mobile to be
“Very Important” to their company’s growth increased with each year of the survey. Just 35%
of merchants and 44% of organizations overall considered mobile strategies “Very Important” in
2012, but this is up to about 60% today.
Importance of Mobile Channel for Overall Growth
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015
43.9%
16.3%
39.7%
50.9%
14.6%
34.5%
52.7%
13.0%
34.3%
61.4%
9.4%
29.1%
n Not very
important
n Somewhat
important
n Very Important
Importance of Mobile Strategy for Growth Plans (All)

26
BACK TO TOP
A similar trend can be seen with data for merchants only. The percentage of merchants reporting
that a mobile strategy is important to their growth plans also increased year over year. By 2015,
the share of merchants who said mobile is “Not Very Important” fell from 19% to just 8%.
Importance of Mobile Strategy for Growth - Merchants
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015
34.6%
19.2%
46.2%
49.0%
16.5%
34.5%
49.5%
10.8%
39.6%
59.5%
8.1%
32.4%
Importance of Mobile Strategy for Growth Plans (Merchants)
n Not very
important
n Somewhat
important
n Very Important

27
BACK TO TOP
More than half of each type of organization surveyed stated that their mobile strategy is “Very
Important” to their overall growth plans, while card associations are the group relatively least likely
to put this high of significance on mobile and are most likely to consider it “Somewhat Important.”
Card issuers, whom many have likely been concerned with ensuring their cardholders can use
their cards within the mobile payments systems they prefer to use, are the group most likely to
consider mobile “Very Important.”
Importance of Mobile Strategy for Growth - Organization Type
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Acquirer Card
Association
Card
Issuer
Merchant Service
Provider
59.1%
13.6%
27.3%
53.8%
7.7%
38.5%
75.0%
10.0%
15.0%
59.5%
8.1%
32.4%
62.6%
10.2%
27.2%
Importance of Mobile Strategy for Growth Plans (Organization Type)
n Not very
important
n Somewhat
important
n Very Important

28
BACK TO TOP
Looking at merchants and broken down by revenue, it is the large and enterprise merchants,
those earning $50 million or more each year, who are the most likely to consider their mobile
strategies “Very Important” to their overall growth. The same was true last year when nearly 60%
of merchants in the greater than $50 million annual revenue range shared this sentiment, up to
68% in this year’s survey. There was a notable increase in the share of merchants in the less than
$5 million annual revenue range that consider mobile “Very Important,” however, increasing from
31% to 54%.
Importance of Mobile Strategy for Growth - Merchant Revenue
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2014/15
$5
Million
2014/15
$5-10
Million
2014/15
$10-25
Million
2014/15
$25-50
Million
2014/15
$50
Million
Importance of Mobile Strategy for Growth Plans (Merchant Revenue - 2014 2015)
53%
7%
39%
55%
9%
36%
44%
19%
37%
56%
11%
33%
67%
6%
27%
31%
38%
48% 50%
21%
14% 11% 11%
48%
48%
41% 39%
57%
7%
36%
n Not very
important
n Somewhat
important
n Very Important

29
BACK TO TOP
The types of goods or services a merchant sells in the Card Not Present channel can also impact
how significant they believe the mobile channel is to their overall growth. This includes high risk
verticals like Money Movement, Financial Services, Gaming and Dating/Social Sites, where at
least three-quarters of merchants say mobile is “Very Important.” There are 12 merchant
product/service segments where at least two-thirds of merchants agree.
Importance of Mobile Strategy for Growth - Merchant Type
Importance of Mobile Strategy
for Growth (Merchant Type)
Very
Important
Somewhat
Important
Not Very
Important
Apparel/Accessories 50.0% 44.1% 5.9%
Computer/Electronics 66.7% 24.2% 9.1%
Digital Goods 63.6% 27.3% 9.1%
Health/Beauty 58.3% 37.5% 4.2%
Housewares/Home Furnishings 56.5% 30.4% 13.0%
Jewelry 52.2% 34.8% 13.0%
Sporting Goods 66.7% 23.8% 9.5%
Toys/Hobbies 47.4% 36.8% 15.8%
Food/Drug 58.8% 41.2% 0.0%
Books/Music/Video 46.7% 33.3% 20.0%
Professional Services 46.2% 38.5% 15.4%
Gaming 75.0% 16.7% 8.3%
Specialty/Non-Apparel 75.0% 25.0% 0.0%
Travel 50.0% 33.3% 16.7%
Financial Services 90.9% 9.1% 0.0%
Flowers/Gifts 60.0% 30.0% 10.0%
Office Supplies 60.0% 30.0% 10.0%
Dating/Social Sites 100.0% 0.0% 0.0%
Other 71.4% 14.3% 14.3%
Other Services 57.1% 28.6% 14.3%
Telecom 71.4% 28.6% 0.0%
Automobiles/Auto Parts 60.0% 40.0% 0.0%
Hardware/Home Improvement 60.0% 20.0% 20.0%
Mass Merchant 80.0% 20.0% 0.0%
Money Movement 80.0% 20.0% 0.0%
Direct Response 100.0% 0.0% 0.0%
Insurance 50.0% 25.0% 25.0%
Alcohol/Tobacco 100.0% 0.0% 0.0%

30
BACK TO TOP
Likely related to the increase in merchants and all organizations that consider mobile “Very
Important” to their growth and success, is the increase in organizations that are actively
supporting the mobile channel over this same time frame. Across all organizations, the share of
survey respondents actively supporting the mobile channel increased from 68% in 2012 to 78% in
this year’s survey.
Support for the Mobile Channel
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015
60%
10%
30%
63%
13%
23%
69%
11%
20%
78%
5%
17%
n No plans for
mobile
n Plan to support
in 2016
n Actively
support mobile
Support for Mobile Channel (All)

31
BACK TO TOP
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
The trend of increasing support for mobile is even more prominent with merchants, as the
share of merchants actively supporting the mobile channel increased from 54% to 82% over
the four years of the Mobile Payments and Fraud Survey. Only 1% of merchants and 5% of all
organizations have no plans to support the mobile channel today.
Support for the Mobile Channel - Merchants
54%
12%
34%
64%
12%
25%
69%
11%
20%
82%
1%
17%
Support for Mobile Channel (Merchants)
2012 2013 2014 2015
n No plans for
mobile
n Plan to support
in 2016
n Actively
support mobile

32
BACK TO TOP
Support for mobile payments is high across all types of organizations surveyed, although
acquirers and service providers are slightly less likely to support mobile today relative to
merchants, card issuers and card associations. The share of merchants, card associations and
issuers actively supporting mobile at the time of the survey each increased by at least 10% from
last year to this year.
Support for the Mobile Channel - Organization Type
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Acquirer Card
Association
Card
Issuer
Merchant Service
Provider
85%
8%
8%
85%
15%
82%
1%
17%
73%
10%
17%
Support for Mobile Channel (Organization Type)
77%
5%
18%
n No plans for
mobile
n Plan to support
in 2016
n Actively
support mobile

33
BACK TO TOP
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
n No plans for
mobile
n Plan to support
in 2016
n Actively
support mobile
Nine out of every ten merchants earning more than $50 million per year actively supports the
mobile channel while the remaining plan to add support for the mobile channel by the end of
2016. This is up from eight-in-ten merchants that actively support mobile at the time of last year’s
survey. The only revenue grouping where any merchant says they have no plans for mobile is
the less than $5 million per year category, but this is down from 22% last year to just 2% today.
Meanwhile, merchants in the less than $5 million annual revenue grouping that actively support
mobile nearly doubled from 43% to 80%.
Support for the Mobile Channel - Merchant Revenue
45%
55%
69%
31%
89%
11%
92%
8%
Support for Mobile Channel (Merchant Revenue)
80%
2%
17%
$5
Million
$5-10
Million
$10-25
Million
$25-50
Million
$50
Million

34
BACK TO TOP
Active support for the mobile channel goes across all types of goods or services a merchant may
sell online, with at least half of merchants currently supporting the mobile channel across all 28 of
the merchant types or product categories represented. At least 80% of merchants in 23 of these
vertical markets support the mobile channel today, including at least 90% mobile penetration
in the Gaming, Travel, Office Supplies Flowers/Gifts, Dating/Social Sites, and Hardware/Home
Improvement industries.
Support for the Mobile Channel - Merchant Type
Support for Mobile Channel
(Merchant Type)
Actively
Support
Plan to
Support 2016
No Plans to
Support
Apparel/Accessories 82.4% 17.6% 0.0%
Computer/Electronics 81.8% 18.2% 0.0%
Digital Goods 81.8% 18.2% 0.0%
Health/Beauty 83.3% 16.7% 0.0%
Housewares/Home Furnishings 78.3% 21.7% 0.0%
Jewelry 82.6% 17.4% 0.0%
Sporting Goods 85.7% 14.3% 0.0%
Toys/Hobbies 89.5% 10.5% 0.0%
Food/Drug 100.0% 0.0% 0.0%
Books/Music/Video 66.7% 26.7% 6.7%
Professional Services 84.6% 15.4% 0.0%
Gaming 91.7% 8.3% 0.0%
Specialty/Non-Apparel 100.0% 0.0% 0.0%
Travel 91.7% 8.3% 0.0%
Financial Services 81.8% 18.2% 0.0%
Flowers/Gifts 90.0% 10.0% 0.0%
Office Supplies 90.0% 10.0% 0.0%
Dating/Social Sites 100.0% 0.0% 0.0%
Other 57.1% 42.9% 0.0%
Other Services 85.7% 14.3% 0.0%
Telecom 85.7% 14.3% 0.0%
Automobiles/Auto Parts 100.0% 0.0% 0.0%
Hardware/Home Improvement 100.0% 0.0% 0.0%
Mass Merchant 100.0% 0.0% 0.0%
Money Movement 80.0% 20.0% 0.0%
Direct Response 50.0% 50.0% 0.0%
Insurance 75.0% 25.0% 0.0%
Alcohol/Tobacco 100.0% 0.0% 0.0%

35
BACK TO TOP
While there are measurable increases in
merchants that currently support the mobile
channel, the level of support or features
can vary quite a bit from merchant to
merchant, just as it can across other types
of organizations.
Amongst merchants there was an increase
in support for remote mobile payment
features or capabilities but a slight decrease
in support for mobile payments made in-
person compared to last year. The share
of merchants that had a dedicated mobile
website at the time of the Mobile Payments
and Fraud Survey increased from 48%
to 58% in one year, while the increase in
merchants offering a mobile app for online
shopping was more subtle, growing from
52% to 55%.
There was more excitement around mobile payments at the physical point-of-sale in last year’s
survey, which wasn’t too far removed from the launch of Apple Pay. In this year’s survey, however,
merchant support for mobile payments at the physical point-of-sale fell from 31% to 29% and
merchants that offer a mobile app for in-store shopping declined from 27% to 22%.
The share of merchants planning to add support for mobile payments at the physical point-of-
sale sometime this year also fell by 5% compared to the previous survey and report. Just 16% of
merchants have no plans to develop or add support for mobile apps or payments this year. As
Facebook, Pinterest and others added direct purchase options and “Buy” buttons in 2015, the
Mobile Payments and Fraud Survey sought to measure what share of merchants support these
features. Nearly one-in-four merchants offer direct purchase through a social media platform,
while another 28% plan to add support for this sometime this year.
Support for Mobile Features and Capabilities

36
BACK TO TOP
Merchants are more likely to support features or capabilities for mCommerce or remote mobile
payments, but service providers, acquirers and other organizations are more likely to support
mobile payments made in-person. Less than one-third of merchants accept mobile payments at
the physical point-of-sale and just 22% offer in-store shopping with a mobile app, whereas 87%
of merchants support remote mobile payments through a dedicated mobile site, mobile app or
both. About one-third of merchants plant to add support for point-of-sale mobile payments in
2016, while more than one-fifth plan to add support for in-store shopping with their mobile app.
Mobile Capabilities and Planned Initiatives - Merchants
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Dedicated
mobile
Website
Support
POS
Mobile
payments
Mobile
app for
online
shopping
Mobile
app for
in-store
shopping
Direct
purchase
through
social
media
No plans
for the
coming
year
58%
32%
29%
32%
55%
50%
22% 22%
24%
28%
0%
16%
n Have currently
n Plan to Support
in 2016
Mobile Capabilities and Planned Initiatives (Merchants)

37
BACK TO TOP
About two-thirds of non-merchant organizations currently support mobile payments at the
physical point-of-sale, up from 53% last year when it was also the feature or capability service
providers and organizations other than merchants were most likely to currently offer or support.
Less than half, 42%, of non-merchant organizations support mobile apps for online shopping,
and 40% support dedicated mobile websites, but nearly as many have plans offer or support
these features by the end of 2016.
Mobile Capabilities and Planned Initiatives - Non-Merchants
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Dedicated
mobile
Website
Support
POS
Mobile
payments
Mobile
app for
online
shopping
Mobile
app for
in-store
shopping
Available
SDK for
developers
40%
37%
66%67%
42% 42%
31%
33%
36%
35%
n Have currently
n Plan to support
in 2016
Mobile Capabilities and Planned Initiatives (Non-Merchants)

38
BACK TO TOP
With the exception of direct purchase via social media platforms, other efforts, features or
capabilities for supporting sales in the mobile channel have been measured for four consecutive
years, showing a significant increase in how merchants are utilizing the mobile channel to drive
revenue. Although there were slight declines in support for mobile payments at the physical point-
of-sale and mobile apps for in-store shopping, the share of merchants that currently support
these capabilities is significantly higher compared to the inaugural Mobile Payments and Fraud
Survey in 2012. At that time, just 15% of merchants supported mobile POS payments and only
5% offered a mobile app for in-store shopping, compared to 29% and 22% today. The share
of merchants that offer a dedicated mobile website has increased from 38% to 58% in this four
year span, but even more significant is the increase in merchants offering mobile apps that allow
consumers to transact online, increasing from 21% to 55% over this time.
Mobile Features and Capabilities Supported - Merchants
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Dedicated
mobile
Website
Support
POS
Mobile
payments
Mobile
app for
online
shopping
Mobile
app for
in-store
shopping
Direct
purchase
through
social
media
n 2012
n 2013
n 2014
n 2015
Mobile Features and Capabilities Supported (Merchants)

39
BACK TO TOP
The survey found notable differences between higher and lower revenue organizations in terms
of support for mobile features and capabilities; mainly that larger merchants are more likely to
support mobile payments at the physical point-of-sale as well as mobile apps, both for online
and in-store shopping, relative to their lower revenue counterparts. Lower revenue merchants are
keeping pace in terms of offering a dedicated mobile website, as shown by the 64% of merchants
with annual revenues less than $5 million that support this. Digging a little deeper into the data
the disparity in support for mobile payments at the physical point-of-sale between higher (39%)
and lower (15%) revenue merchants is easily explained: merchants in the less than $5 million
annual revenue group are primarily mobile and/or online only, whereas merchants in the
greater than $50 million annual revenue group are much more likely to also be active in the
brick-and-mortar channel.
Current Mobile Capabilities - Merchant Revenue
Current Mobile Capabilities
(Merchant Revenue)
$5
Million
$5 - 10
Million
$10 - 25
Million
$25 - 50
Million
$50
Million
Dedicated mobile website 63.4% 45.5% 50.0% 44.4% 60.6%
Support POS mobile payments 14.6% 27.3% 12.5% 44.4% 39.4%
Mobile app for online shopping 39.0% 63.6% 50.0% 22.2% 69.0%
Mobile app for in-store shopping 9.8% 18.2% 6.3% 22.2% 33.8%
Direct purchase through 22.0% 27.3% 12.5% 33.3% 26.8%
social media

40
BACK TO TOP
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
There is no one-size-fits all approach or strategy for mobile payments, but the Mobile Payments
and Fraud Survey seeks to understand where organizations that offer or support mobile payments
are focusing their efforts. One perspective and point of measurement is the mobile operating
systems or platforms organizations leverage for mCommerce.
Each year Android and Apple’s iOS have been the mobile operating systems organizations are
most likely to be using or supporting at the time of the survey. Three-quarters of all organizations
surveyed currently support mobile payments across the Android platform and 71% support iOS.
There is a significant drop off in support for the other primary mobile operating systems, however,
as support for Windows and Blackberry sit at 34% and 15%, respectively, each slightly down
from last year. Not only are organizations less likely to support BlackBerry or Windows today, they
are less likely to have plans to add support for these mobile operating systems. Whereas more
than 30% of organizations plan to add or increase support for iOS and Android, only 20% plant to
add support for Windows and just 8% plan to add support for BlackBerry by the end of this year.
Support for Mobile OS Platforms
iOS Android Windows Blackberry HTML 5 Mobile
Optimized
Checkout
Cross-Platform
Solutions
Other None Uncertain
n Currently
Support
n Adding Support
in 2016
Support for Mobile Operating Systems and Platforms (All Respondents)

41
BACK TO TOP
When broken down by type of organization, we see that merchants are generally less likely
to support the iOS and Android operating systems relative to each of the other four types of
businesses surveyed. Merchant support for Windows and cross-platform solutions like HTML 5
and mobile optimized checkout, however, is on par with support among all other organizations.
Looking ahead, more than 30% of merchants plan to add or increase support for Android and
iOS by the end of 2016, while one-in-five merchants have no plans to add support to any mobile
operating systems or platforms this year. A similar share of service providers surveyed plan to
add or increase support for iOS and Android this year, while nearly 25% of service providers are
adding support for HTML 5. Card issuers are the type of organization least likely to be adding or
increasing support for any mobile operating systems or platforms this year.
Current Mobile Capabilities - Merchant Revenue
Currently Supported Mobile
Platforms (Organization Type) Acquirer Card
Association
Card
Provider
iOS 81.8% 69.2% 80.0% 60.8% 79.5%
Android 86.4% 76.9% 90.0% 64.9% 80.8%
Windows 36.4% 38.5% 30.0% 33.8% 34.9%
BlackBerry 31.8% 23.1% 15.0% 14.9% 12.3%
HTML 5 - Cross Platform 22.7% 30.8% 20.0% 33.1% 42.5%
Mobile Optimized Checkout 13.6% 23.1% 20.0% 30.4% 30.1%
Other 0.0% 7.7% 0.0% 0.7% 3.4%
None 0.0% 0.0% 5.0% 6.1% 2.7%
Uncertain 4.5% 23.1% 10.0% 18.2% 6.8%
Adding Platform Support in 2016
(Organization Type) Acquirer Card
Association
Card
Provider
iOS 36.4% 53.8% 20.0% 31.1% 28.1%
Android 27.3% 53.8% 25.0% 30.4% 32.2%
Windows 18.2% 46.2% 25.0% 14.9% 21.9%
BlackBerry 13.6% 23.1% 5.0% 6.8% 7.5%
Other 4.5% 7.7% 0.0% 1.4% 2.7%
None 27.3% 7.7% 20.0% 20.3% 23.3%
Uncertain 27.3% 23.1% 30.0% 37.2% 26.0%

42
BACK TO TOP
Support for Mobile OS Platforms - Merchants
Uncertain
Taking a closer look at merchants, we see that support grew for iOS and Android but support for
Windows and BlackBerry each fell since last year’s survey. While the share of merchants currently
supporting iOS and Android last year was nearly equal (56.5% and 56.3%), support for Android
(65%) pulled ahead of iOS (61%) this year. Outside of Android and iOS, merchants seem to be
focusing their efforts with cross-platform solutions as support for HTML5 more than doubled from
15% to 33%, and merchants supporting mobile optimized checkout nearly doubled from 16% to
30%, in the past year.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
iOS Android Windows Blackberry HTML 5 Mobile
Optimized
Checkout
Cross-Platform
Solutions
Other None
n 2014
n 2015
Support for Mobile Operating Systems and Platforms (Merchants)

43
BACK TO TOP
This year’s survey shows that revenue is a factor in how likely a merchant is to support mobile
operating systems overall, as well as which ones they are more likely to leverage for mobile
commerce. Lower revenue merchants are less likely to be supporting any of the four major mobile
operating systems relative to higher revenue merchants today. Merchants earning more than
$25 million per year in annual revenue are slightly more likely to support iOS than Android (73%
versus 72%). Merchants earning less than $25 million per year online are significantly less likely to
support either operating system, but notably more likely to support Android (57%) than iOS (47%).
Support for Mobile OS Platforms - Merchant Revenue
Currently Supported Platforms
(Merchant Revenue)
$5
Million
$5 - 10
Million
$10 - 25
Million
$25 - 50
Million
$50
Million
iOS 46.3% 45.5% 50.0% 66.7% 73.2%
Android 61.0% 63.6% 43.8% 66.7% 71.8%
Windows 26.8% 27.3% 31.3% 44.4% 38.0%
BlackBerry 14.6% 9.1% 12.5% 11.1% 16.9%
Other 0.0% 0.0% 0.0% 0.0% 1.4%
None 4.9% 9.1% 0.0% 11.1% 7.0%
Uncertain 12.2% 18.2% 31.3% 22.2% 18.3%

44
BACK TO TOP
Over the past two years, the Mobile Payments and Fraud Survey has included questions to gauge
the acceptance or support of various mobile wallets. In that short period of time there have been
notable changes in the mobile wallet landscape. This includes new entrants such as Samsung
Pay and Chase Pay, Google acquiring and discontinuing SoftCard, as well as Google rebranding
their mobile wallet to Android Pay and pivoting Google Wallet to focus on P2P payments.
Support for Mobile Wallets

45
BACK TO TOP
The survey first asked whether or not organizations accept or support any mobile wallets, then
asked those who said “Yes” which ones were in use. While 44% of all survey respondents
accept or support mobile wallets overall, there is considerable variation between different types
of organizations. Just over one-third of merchants surveyed accept mobile wallets, compared to
45% of service providers and 59% of acquirers. Card associations and issuers are the most likely
to support mobile wallets at 85% and 75%, as many have made efforts to ensure the cards they
issue can be used across multiple mobile wallets. This may be related to card issuers also being
most likely to say a mobile strategy is “Very Important” for their growth plans.
Support for Mobile Wallets
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Acquirer Card
Association
Card
Issuer
Merchant Service
Provider
59%
41%
7%75%
25%
34%
59%
45%
55%
n No
n Uncertain
n Yes
Support for Mobile Channel (Merchant Revenue)
85%
15%

46
BACK TO TOP
Although merchants are less likely to accept mobile wallets than all other types of organizations,
the share of merchants that accept mobile wallets increased by 10% since last year. Less than
one-in-four merchants accepted mobile wallets in last year’s Mobile Payments and Fraud Survey,
but this is up to one-in-three merchants that accept mobile wallets today.
Acceptance of Mobile Wallets - Merchants
Yes
24%
Yes
34%
No
76%
No
59%
Uncertain
7%
2014
Accept
Mobile Wallets
(Merchants)
2015
Accept
Mobile Wallets
(Merchants)

47
BACK TO TOP
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
n No
n Uncertain
n Yes
When dissecting merchants by revenue, a common theme reappears: merchants with higher
annual revenues are considerably more likely to accept mobile wallets. About 44% of merchants
generating more than $50 million per year accept mobile wallets compared to just 25% of
merchants earning anything less.
Acceptance of Mobile Wallets - Merchant Revenue
$5
Million
$5-10
Million
$10-25
Million
$25-50
Million
$50
Million
29.3%
63.4%
22.2%
11.1%
66.7%
Acceptance of Mobile Wallets (Merchant Revenue)
18.2%
81.8%
7.3%
43.7%
49.3%
7.0%
25.0%
68.8%
6.3%

48
BACK TO TOP
Mobile Wallets Accepted
The 44% of organizations that accept or support mobile wallets were next asked to specify which
ones, with Apple Pay and Android Pay being the most common across organizations overall.
Merchants are more likely to accept PayPal than any other mobile wallet, but non-merchant
organizations are considerably less likely to support PayPal than they are Apple Pay or Android
Pay. Merchants are more likely to accept Apple Pay over Android Pay (45% versus 34%), whereas
all other types of organizations are more likely to support Android Pay over Apple Pay (41%
versus 35%). Service providers and other non-merchant organizations are also slightly more likely
to support Samsung Pay, MCX’s CurrentC, Visa Checkout and MasterPass than merchants are
likely to accept these mobile wallets.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
UncertainApple
Pay
Android
Pay
Samsung
Pay
PayPal Visa
Checkout
MasterPass MCX
CurrentC
Other
n Merchants
(Accept)
n Non-Merchants
(Support)
Which Mobile Wallets Do You Accept or Support? (All)

49
BACK TO TOP
Mobile Wallets Accepted - Merchants (2014 / 2015)
From last year to this year’s Mobile Payments and Fraud Survey and Report there have been
some changes in the mobile wallet market landscape, but merchant acceptance of the three
largest mobile wallets each increased. About one-third of merchants that accepted any mobile
wallets at the time of last year’s survey accepted Apple Pay while one-third accepted what was
then still referred to as Google Wallet. Now referring to this as Android Pay it is accepted by
34% of merchants that accept any mobile wallets, while the share of these merchants accepting
Apple Pay grew further to 45%. The share of merchants accepting MasterPass and CurrentC
stayed relatively flat from last year, at about 8% and 5%, respectively. Merchants accepting Visa
Checkout, however, fell from 28% to 16% of merchants that accept one or more mobile wallets.
Samsung Pay, which launched in 2015, was added to this year’s survey and is accepted by 5%
of merchants, while SoftCard, which was shut down in 2015, was removed from the most
recent survey.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
UncertainApple
Pay
Android
Pay/ Google
Wallet
Samsung
Pay
PayPal Visa
Checkout
MasterPass MCX
CurrentC
OtherSoftCard
n 2014
n 2015
Which Mobile Wallets Do You Accept? (Merchants)

50
BACK TO TOP
Mobile Wallets Accepted or Plan to Accept - Merchants
Although more merchants accept Apple Pay today, more plan to accept Android Pay in the
future. Even then, merchants are most likely to accept PayPal now or plan to in the future over
either Apple or Android Pay. Although merchants surveyed accepting Visa Checkout fell to 16%,
an additional 23% of merchants plan to accept it in the future. Following the 2015 launch of
Samsung Pay only 5% of merchants accepted this mobile wallet at the time of the survey, but
14% plan to accept it in the future. In anticipation of Chase Pay, about 4% of merchants plan to
begin accepting this mobile in the near future.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
UncertainApple
Pay
Android
Pay
Samsung
Pay
PayPal Visa
Checkout
MasterPass MCX
CurrentC
OtherChase Pay
n Accept Currently
n Plan to Accept
Which Mobile Wallets Do You Accept or Plan to Accept in the Future? (Merchants)

51
BACK TO TOP
In each of the four years of the Mobile Payments and Fraud Survey merchants have been asked
to estimate the percentage of total sales that occur in the mobile channel, and while half of
merchants earned less than 5% of total revenue in the mobile channel at the time of the inaugural
survey in 2012, this is down to just 21% of merchants today. Over this same time frame, the share
of merchants earning at least 40% of their total revenue in the mobile sales channel has increased
from 2.5% to 20%. Just from last year there was a significant decline in the share of merchants
earning less than 5% of total revenue from the mobile sales channel (down from 35% to 21% this
year), coupled with a significant increase in merchants earning at least 30% of their revenue in the
mobile sales channel (up from 9% to 29%).
Revenue from Mobile Sales Channel - Merchants (2012-2015)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
n 2012
n 2013
n 2014
n 2015
Less than 5% 30% - 40%5% - 10% 40% - 50%10% - 20% More than 50%20% - 30% Don’t Know
Percent of Total Revenue from Mobile Sales Channel (Merchants)

52
BACK TO TOP
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Revenue from Mobile Sales Channel
While merchants are driving more and more sales from the mobile channel each year, service
providers, acquirers and other organizations are generating more revenue through the mobile
channel as well. Organizations overall are earning more of their total revenue through the
mobile channel, and have even higher expectations for two years down the road. About 27% of
organizations overall derive less than 5% of their total revenue from the mobile channel, but less
than 8% expect this to be the case in two years. The share of organizations generating at least
half of their revenue in the mobile channel is 12% today, but 27% expect to earn more than half of
their revenue in the mobile channel within two years.
Percent of Total Revenue from Mobile Sales Channel (All Respondents)
n Today
n ln 2 Years
28%
8%
16%
11%
16% 17%
13% 15%
4%
12%
9%
10%
12%
27%
3%
0%
Less than 5% 30% - 40%5% - 10% 40% - 50%10% - 20% More than 50%20% - 30% Don’t Know

53
BACK TO TOP
How big of a role the mobile channel plays in total revenue varies across the different types of
organizations surveyed. Half of acquirers say the channel generates less than 5% of their total
revenue, compared to about 20% of merchants and issuers. Service providers are the type
of organization most likely to earn more than half of their total revenue in the mobile channel,
although this can include providers that only offer services for or primarily focus on mobile, which
may skew the group higher. Card associations, merchants and service providers are also the
types of organizations most likely to believe that the mobile channel will generate at least half of
their total revenue within two years, at 31%, 29% and 28%, respectively.
Revenue from Mobile Sales Channel - Organization Type
% Revenue in Mobile Channel
Today (Organization Type) Acquirer Card
Association
Card
Provider
Less than 5% 50.0% 30.8% 20.0% 20.9% 31.3%
5% - 10% 22.7% 7.7% 25.0% 16.2% 14.3%
10% - 20% 9.1% 15.4% 30.0% 14.2% 17.0%
20% - 30% 4.5% 15.4% 15.0% 12.8% 15.0%
30% - 40% 0.0% 0.0% 0.0% 8.8% 0.0%
40% - 50% 4.5% 30.8% 5.0% 10.8% 5.4%
More than 50% 9.1% 0.0% 5.0% 9.5% 17.0%
Don’t know 0.0% 0.0% 0.0% 6.8% 0.0%
in 2 Years (Organization Type) Acquirer Card
Association
Card
Provider
Less than 5% 13.6% 0.0% 5.0% 5.4% 10.2%
5% - 10% 18.2% 23.1% 5.0% 12.2% 8.2%
10% - 20% 22.7% 15.4% 30.0% 14.2% 18.4%
20% - 30% 9.1% 23.1% 20.0% 16.9% 12.2%
30% - 40% 18.2% 7.7% 10.0% 12.8% 10.9%
40% - 50% 4.5% 0.0% 10.0% 9.5% 12.2%
More than 50% 13.6% 30.8% 20.0% 29.1% 27.9%

54
BACK TO TOP
Apparel/Accessories 26.5% 14.7% 14.7% 11.8% 0.0% 14.7% 11.8% 5.9%
Computer/Electronics 21.2% 24.2% 9.1% 18.2% 3.0% 3.0% 18.2% .0%
Digital Goods 18.2% 15.2% 18.2% 12.1% 6.1% 3.0% 12.1% 15.2%
Health/Beauty 29.2% 4.2% 20.8% 12.5% 8.3% 4.2% 12.5% 8.3%
Housewares/Home Furnishings 30.4% 17.4% 13.0% 8.7% 4.3% 4.3% 17.4% 4.3%
Jewelry 21.7% 21.7% 13.0% 8.7% 13.0% 4.3% 8.7% 8.7%
Sporting Goods 19.0% 33.3% 0.0% 19.0% 14.3% 0.0% 9.5% 4.8%
Toys/Hobbies 31.6% 21.1% 15.8% 15.8% 5.3% 0.0% 5.3% 5.3%
Food/Drug 52.9% 0.0% 11.8% 5.9% 5.9% 11.8% 5.9% 5.9%
Books/Music/Video 26.7% 6.7% 20.0% 20.0% 6.7% 0.0% 6.7% 13.3%
Professional Services 23.1% 7.7% 0.0% 30.8% 0.0% 7.7% 15.4% 15.4%
Gaming 16.7% 33.3% 0.0% 8.3% 0.0% 8.3% 25.0% 8.3%
Specialty/Non-Apparel 6.7% 16.7% 8.3% 33.3% 0.0% 0.0% 16.7% 8.3%
Travel 33.3% 16.7% 0.0% 25.0% 0.0% 16.7% 8.3% 0.0%
Financial Services 18.2% 9.1% 27.3% 9.1% 9.1% 18.2% 9.1% 0.0%
Flowers/Gifts 30.0% 0.0% 10.0% 20.0% 20.0% 0.0% 10.0% 10.0%
Office Supplies 30.0% 20.0% 0.0% 20.0% 0.0% 10.0% 20.0% 0.0%
Dating/Social Sites 0.0% 0.0% 14.3% 0.0% 0.0% 28.6% 42.9% 14.3%
Other 28.6% 28.6% 14.3% 0.0% 0.0% 0.0% 14.3% 14.3%
Other Services 42.9% 28.6% 0.0% 0.0% 0.0% 0.0% 28.6% 0.0%
Telecom 28.6% 14.3% 0.0% 28.6% 0.0% 14.3% 14.3% 0.0%
Automobiles/Auto Parts 20.0% 40.0% 0.0% 20.0% 0.0% 0.0% 20.0% 0.0%
Hardware/Home Improvement 20.0% 40.0% 0.0% 20.0% 0.0% 0.0% 20.0% 0.0%
Mass Merchant 0.0% 0.0% 0.0% 40.0% 0.0% 0.0% 20.0% 40.0%
Money Movement 0.0% 20.0% 20.0% 20.0% 0.0% 20.0% 20.0% 0.0%
Direct Response 0.0% 0.0% 0.0% 0.0% 25.0% 0.0% 50.0% 25.0%
Insurance 50.0% 0.0% 0.0% 25.0% 0.0% 0.0% 25.0% 0.0%
Alcohol/Tobacco 0.0% 50.0% 0.0% 0.0% 0.0% 0.0% 50.0% 0.0%
Again looking just at merchants, the survey sought to identify any significant differences in mobile
channel revenue across the various types of goods or services sold. Merchants operating in
the Dating / Social Sites segment, who tend to put a lot of emphasis on their mobile apps, are
one of the groups most likely to earn significant revenue in the mobile channel. This includes
43% of Dating and Social Sites that generate at least half of their revenue form the mobile sales
channel, while more than seven out of every ten of these merchants earns at least 40% of their
revenue in the mobile channel. On the other side of the spectrum, at least 30% of merchants in
the Housewares/Home Furnishings, Toys/Hobbies, Food/Drug, Flowers/Gifts, Travel and Office
Supplies industries earn less than 5% of total revenue in the mobile channel.
Revenue from Mobile Sales Channel - Merchant Type
Today (Merchant Type) 5% 5-10% 10-20% 20-30% 30-40% 40-50% 50% Don’t
Know

55
BACK TO TOP
Apparel/Accessories 5.9% 8.8% 26.5% 14.7% 11.8% 5.9% 26.5%
Computer/Electronics 3.0% 9.1% 18.2% 15.2% 21.2% 3.0% 30.3%
Digital Goods 0.0% 15.2% 12.1% 24.2% 9.1% 9.1% 30.3%
Health/Beauty 4.2% 8.3% 16.7% 20.8% 4.2% 12.5% 33.3%
Housewares/Home Furnishings 4.3% 4.3% 21.7% 26.1% 8.7% 8.7% 26.1%
Jewelry 0.0% 4.3% 26.1% 26.1% 4.3% 13.0% 26.1%
Sporting Goods 0.0% 4.8% 33.3% 9.5% 14.3% 14.3% 23.8%
Toys/Hobbies 5.3% 10.5% 26.3% 15.8% 21.1% 0.0% 21.1%
Food/Drug 11.8% 23.5% 17.6% 11.8% 0.0% 5.9% 29.4%
Books/Music/Video 6.7% 13.3% 20.0% 13.3% 26.7% 6.7% 13.3%
Professional Services 7.7% 30.8% 7.7% 0.0% 0.0% 23.1% 30.8%
Gaming 0.0% 0.0% 33.3% 25.0% 0.0% 8.3% 33.3%
Specialty/Non-Apparel 0.0% 16.7% 25.0% 8.3% 16.7% 8.3% 25.0%
Travel 0.0% 16.7% 25.0% 8.3% 16.7% 0.0% 33.3%
Financial Services 0.0% 9.1% 18.2% 9.1% 0.0% 18.2% 45.5%
Flowers/Gifts 0.0% 20.0% 10.0% 10.0% 10.0% 10.0% 40.0%
Office Supplies 0.0% 20.0% 30.0% 0.0% 20.0% 10.0% 20.0%
Dating/Social Sites 0.0% 0.0% 0.0% 14.3% 0.0% 14.3% 71.4%
Other 0.0% 14.3% 14.3% 0.0% 14.3% 14.3% 42.9%
Other Services 14.3% 14.3% 28.6% 14.3% 0.0% 0.0% 28.6%
Telecom 0.0% 0.0% 42.9% 0.0% 14.3% 0.0% 42.9%
Automobiles/Auto Parts 0.0% 20.0% 40.0% 0.0% 0.0% 20.0% 20.0%
Hardware/Home Improvement 0.0% 20.0% 40.0% 0.0% 0.0% 20.0% 20.0%
Mass Merchant 0.0% 0.0% 0.0% 20.0% 20.0% 20.0% 40.0%
Money Movement 0.0% 0.0% 0.0% 0.0% 40.0% 20.0% 40.0%
Direct Response 0.0% 0.0% 25.0% 0.0% 0.0% 25.0% 50.0%
Insurance 0.0% 25.0% 25.0% 0.0% 0.0% 25.0% 25.0%
Alcohol/Tobacco 0.0% 0.0% 0.0% 50.0% 0.0% 0.0% 50.0%
Very few merchants expect mobile to be less than 5% of their total revenue within two years, in
fact there are 19 categories of types of goods/services sold where not one merchant indicated
this. There are 12 industries, on the other hand, where at least one-third of merchants expect the
mobile channel to generate more than half of total revenue. At least 25% of merchants in 22 of
the 28 industries listed in the table below have this expectation as well.
Future Revenue from Mobile Sales Channel - Merchant Type
in 2 Years (Merchant Type) 5% 5-10% 10-20% 20-30% 30-40% 40-50% 50%

Mobile Payments Fraud:
2016 Report
Mobile Preferences, Priorities and Obstacles

57
BACK TO TOP
In addition to measuring the overall levels of support, emphasis and revenue organizations are
placing on or earning from the mobile channel, the Annual Mobile Payments and Fraud Survey
also sought to understand the different preferences and priorities that influence the direction of
mobile plans for merchants and other types of organizations. This includes survey topics and
findings focused on:
• How organizations employ and implement their mobile strategies
• Understanding what aspects/potential benefits of the mobile channel organizations value most
• What organizations think consumers’ mobile payment preferences will be
• Geographic regions where organizations place the highest priority on the mobile channel
• What organizations perceive as the greatest obstacles to increasing mobile adoption
• Merchant perspectives on the importance of being able to detect mobile devices (and how
many actually can)
This started with understanding how organizations implement mobile initiatives, whether it is
something they handle internally and/or with outside help. Over the four years of the Mobile
Payments and Fraud Survey, the share of organizations managing mobile implementations
internally with in-house resources has increased by 14%, rising steadily at around 5% per year.
The use of periodic contractors and outsourced resources has slightly declined, each down
about 2% from 2012, but the overall trend is that organizations are handling more mobile
implementations in-house while continuing to use periodic contractors and outsourced resources
at similar levels.
Mobile Preferences, Priorities and Obstacles
Resources Employed to Enable Mobile eCommerce
Resources for Mobile
Implementations (All) 2012 2013 2014 2015
In-house resources 64.0% 69.8% 73.6% 78.3%
Outsourced resources 49.4% 46.2% 47.7% 46.6%
Periodic contractors 20.2% 18.9% 20.7% 18.4%

58
BACK TO TOP
Service providers are the type of organizations most likely to rely on in-house resources for their
mobile implementations, followed by acquirers and merchants. Card associations and issuers
are the most likely to be relying on periodic contractors and outside resources, as these types of
organizations are equally or nearly as likely to be using outsourced resources as they are using
in-house resources.
Mobile Resources Employed - Organization Type
n In-house
resources
n Outsourced
resources
n Periodic
contractors
Mobile Resources Employed (Organization Type)
Acquirer Card
Association
Card
Issuer
Merchant Service
Provider
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

59
BACK TO TOP
Taking a closer look at organizations by revenue, the data shows that those generating
higher annual revenue are considerably more likely to employ in-house resources and slightly
more likely to employ outsourced resources for their mobile implementations. Nearly 63% of
organizations generating less than $10 million per year in revenue utilize in-house resources for
mobile compared to 79% of organizations earning more than $10 million per year. The difference
between organizations above and below $10 million in annual revenue in terms of employing
outsourced resources is less pronounced, at about 4%.
Mobile Resources Employed - Revenue
Mobile Resources Employed (Revenue, All)
$5
Million
$5-10
Million
$10-25
Million
$25-50
Million
$50
Million
n In-house
resources
n Outsourced
resources
n Periodic
contractors
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

60
BACK TO TOP
There are many ways the mobile channel benefits both businesses and consumers. To better
understand what drives an organization’s mobile initiatives and priorities, the survey collected
information on what aspects of the mobile channel organizations value most. In each year of the
Mobile Payments and Fraud Survey respondents were asked to rank the four primary areas where
they see mobile providing value from most to least important. Value rankings were assessed for
these four categories:
• Convenience – Making it quick and easy to pay from a mobile device, in-store or online
• Opportunity – Increasing leads and sales generation into all channels
• Conversion – Upsell opportunities and location-based promotions
• Loyalty – Increasing consumer loyalty, leading to higher retention and lifetime value
How the Mobile Channel Adds Value

61
BACK TO TOP
Each year organizations have considered Opportunity to be mobile’s “Most Important” benefit,
and for three consecutive years organizations are most likely to say Conversion is (the second
most) “Important.” Loyalty was most likely to be considered “Important” in the inaugural survey,
but fell to “Least Important” for the previous two surveys and is most likely to be considered “Less
Important” in this year’s survey.
How the Mobile Channel Adds Value - 2012 vs. 2015
2012/15
Most
Important
2012/15
Important
2012/15
Less
Important
2012/15
Least
Important
n Opportunity
n Loyalty
n Conversion
n Convenience
Ranking Where Mobile Adds the Most Value (All - 2012/2015)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
20%
36%
26%
18%
29%
35%
17%
19%
27%
21%
29%
23%
22%
26%
25%
27%
32%
13%
19%
36%
27%
12%
14%
47%
25%
20%
29%
26%
23%
19%
29%
28%

62
BACK TO TOP
Merchants are even more likely to consider Opportunity “Very Important” than organizations
overall, but this is down to 41% from 49% last year. Whereas all organizations were most likely
to rank Conversion second in terms of how mobile adds value, merchants were most likely to
consider Conversion the “Least Important.” This is a notable shift in merchant opinions from
last year, when they were most likely to consider Conversion “Important” and Loyalty “Least
Important.” Convenience remains ranked in third of fourth place, most likely to be considered a
“Less Important” benefit, but nearly one-in-four merchants say Convenience is “Most Important.”
How the Mobile Channel Adds Value - Merchants
Most
Important
Important Less
Important
Least
Important
n Opportunity
n Loyalty
n Conversion
n Convenience
Ranking Where Mobile Adds the Most Value (Merchants)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
24%
41%
15%
20%
20%
26%
29%
25%
31%
15%
29%
25%
24%
19%
27%
30%

63
BACK TO TOP
n Opportunity
n Loyalty
n Conversion
n Convenience
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
For the second consecutive year, service providers and other organizations besides merchants
consider Convenience the “Most Important” thing a mobile strategy should offer, ranked just 1%
ahead of Opportunity. Whereas merchants consider Loyalty “Important” and Conversion “Least
Important,” all other types of organizations are more likely to consider Conversion “Important” and
Loyalty “Least Important.”
How the Mobile Channel Adds Value - Non-Merchants
Most
Important
Important Less
Important
Least
Important
Ranking Where Mobile Adds the Most Value (Non-Merchants)
32%
31%
19%
18%
24%
25%
22%
29%
21%
24%
28%
27%
23%
19%
31%
27%

64
BACK TO TOP
Debit
Card
16%
Credit
Card
57%
PayPal
10%
Most Consumer Preferred
Mobile Payment Method
(All)
Consumers have lots of options when it comes to making payments using their mobile devices.
All organizations surveyed were asked what they believe will be the primary form of payment
consumers prefer to use when transacting with mobile devices. Each year of the Mobile Payments
and Fraud Survey the majority of organizations have said this will be credit cards, although this is
down to 57% of organizations from 63% last year. Debit cards, PayPal and mobile wallets are the
next three payment methods organizations think will be most preferred by consumers for mobile
transactions, as indicated by 16%, 10% and 8% of survey respondents overall.
Preferred Forms of Mobile Payment
Mobile Wallet
8%
Bitcoin
1%
Gift Card
2%
Other
1%
ACH
1%
Bill2phone
2%
Prepaid Card
2%

65
BACK TO TOP
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Data on perceived consumer mobile preferences by type of organization surveyed shows that
acquirers, card associations and issuers are the most likely to say card-based payments (credit,
debit, prepaid and gift cards) are the method of choice, as indicated by at least 90% of each of
these groups. Merchants are the least likely group to think consumers will most prefer using cards
to fund mobile payments, at 70%, while16% say consumers will most prefer mobile wallets and
12% PayPal. A small percentage of card associations (8%) and card issuers (5%) are concerned
with consumers preferring Bitcoin or cryptocurrencies.
Preferred Forms of Mobile Payment - Organization Type
n Credit Card
n Debit Card
n PayPal
n Mobile Wallet
n Prepaid Card
n Bill2phone
n Gift Card
n Bitcoin
n Other
n ACH
Acquirer Card
Association
Card
Issuer
Merchant Service
Provider
Most Consumer Preferred Mobile Payment Method (Organization Type)

66
BACK TO TOP
Preferred Forms of Mobile Payment - Merchant Type
Across the 28 different categories of goods or services a merchant may sell online or in the
mobile channel, there are 18 industries where at least half of merchants believe consumers
will prefer to use credit cards for mobile transactions. There are five industries where at least
25% of merchants think consumers will most prefer mobile wallets, including Office Supplies,
Housewares/Home Furnishings and Mass Merchants.

67
BACK TO TOP
Apparel/Accessories 50.0% 8.8% 14.7% 20.6% 0.0% 0.0% 5.9%
Computer/Electronics 63.6% 9.1% 9.1% 18.2% 0.0% 0.0% 0.0%
Digital Goods 42.4% 18.2% 15.2% 15.2% 0.0% 6.1% 3.0%
Health/Beauty 50.0% 12.5% 12.5% 20.8% 4.2% 0.0% 0.0%
Housewares/Home Furnishings 56.5% 8.7% 8.7% 26.1% 0.0% 0.0% 0.0%
Jewelry 60.9% 8.7% 21.7% 8.7% 0.0% 0.0% 0.0%
Sporting Goods 42.9% 19.0% 14.3% 23.8% 0.0% 0.0% 0.0%
Toys/Hobbies 57.9% 10.5% 21.1% 10.5% 0.0% 0.0% 0.0%
Food/Drug 64.7% 5.9% 17.6% 5.9% 5.9% 0.0% 0.0%
Books/Music/Video 53.3% 6.7% 20.0% 20.0% 0.0% 0.0% 0.0%
Professional Services 53.8% 7.7% 7.7% 30.8% 0.0% 0.0% 0.0%
Gaming 50.0% 8.3% 16.7% 16.7% 0.0% 8.3% 0.0%
Specialty/Non-Apparel 58.3% 8.3% 16.7% 16.7% 0.0% 0.0% 0.0%
Travel 75.0% 0.0% 8.3% 16.7% 0.0% 0.0% 0.0%
Financial Services 36.4% 27.3% 9.1% 18.2% 9.1% 0.0% 0.0%
Flowers/Gifts 50.0% 10.0% 10.0% 20.0% 10.0% 0.0% 0.0%
Office Supplies 30.0% 20.0% 20.0% 30.0% 0.0% 0.0% 0.0%
Dating/Social Sites 28.6% 0.0% 28.6% 14.3% 0.0% 14.3% 14.3%
Other 85.7% 0.0% 14.3% 0.0% 0.0% 0.0% 0.0%
Other Services 71.4% 14.3% 14.3% 0.0% 0.0% 0.0% 0.0%
Telecom 42.9% 0.0% 28.6% 28.6% 0.0% 0.0% 0.0%
Automobiles/Auto Parts 40.0% 20.0% 40.0% 0.0% 0.0% 0.0% 0.0%
Hardware/Home Improvement 60.0% 0.0% 40.0% 0.0% 0.0% 0.0% 0.0%
Mass Merchant 40.0% 0.0% 20.0% 40.0% 0.0% 0.0% 0.0%
Money Movement 40.0% 20.0% 20.0% 20.0% 0.0% 0.0% 0.0%
Direct Response 50.0% 0.0% 50.0% 0.0% 0.0% 0.0% 0.0%
Insurance 75.0% 0.0% 25.0% 0.0% 0.0% 0.0% 0.0%
Alcohol/Tobacco 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0%
There is also variation in what form of payment organizations believe consumers will prefer
to process from mobile devices based on the types of goods or services a merchant sells
online. Overall credit card is still the most common response as indicated by more than half of
merchants in all but four vertical markets (Alcohol/Tobacco, Dating/Social Sites, Direct Response
and Insurance). More than one-quarter of merchants in the Alcohol/Tobacco, Direct Response
and Flowers/Gifts industries believe consumers will most prefer using debit cards with mobile
payments. Meanwhile some of the industries more likely to say PayPal will be the preferred mobile
payment method include Dating/Social Sites, Telecom, Computers/Electronics, Office Supplies
and Books/Music/Video. Hardware/Home Improvement merchants and Dating/Social Sites are
the two of the seven industries where at least 25% of merchants believe consumers will most
prefer PayPal.
Preferred Forms of Mobile Payment - Merchant Type
Consumer Preferred Form of
Mobile Payment (Merchant Type)
Credit
Card
Debit
Card PayPal Mobile
Wallet
Prepaid
Card
Bill 2
Phone
Gift
Card

68
BACK TO TOP
In terms of regional priorities for focusing mobile efforts, the majority of merchants and
organizations overall have ranked North America their highest priority in each of the four Mobile
Payments and Fraud Surveys. Western and Eastern Europe are most likely to be considered the
2nd and 3rd highest priority regions. Asia, however, is more likely than Western Europe to be
considered the highest priority for mobile (18% versus 12%) behind North America (60%).
Key Geographic Regions for Mobile Efforts
n Western Europe
n South America
n North America
n Middle East
n Eastern Europe
n AustralIa
n Asia
n Africa
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Highest
Priority
Lowest
Priority
Highest Priority Regions for Mobile (All)
3%
3%
18%
3%
12%
60%
1%
12%
4%
14%
6%
17%
28%
18%
29%
3%
13%
10%
10%
20%
8%
7%
18%
4%
15%
13%
15%
23%
5%
7% 15%
6%
25%
15%
19%
7%
3%
10%
13%
24%
10%
16%
15%
4%
3%
15%
5%
20%
3%
13%
15%
4%
2%
37%
5%
36%
1%
26%
6%
2%
1%
23%

69
BACK TO TOP
Merchants are even more likely to rank North America the highest priority region for mobile at
64%, while 20% of merchants say Asia is the highest priority. Western Europe and Eastern
Europe are most likely to be the 2nd and 3rd highest priority regions for mobile, each indicated by
one-third of merchants.
Key Geographic Regions for Mobile Efforts - Merchants
n Western Europe
n South America
n North America
n Middle East
n Eastern Europe
n Australia
n Asia
n Africa
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Highest Priority Regions for Mobile (Merchants)
Highest
Priority
Lowest
Priority

70
BACK TO TOP
Merchants that rank North America as the highest priority region for mobile also rank Western
and Eastern Europe as the 2nd and 3rd highest priority regions, but put more emphasis on South
America relative to merchants overall. Nearly 30% of these merchants consider South America
the 2nd highest regional priority, and half rank South America at least their 4th highest priority.
Key Geographic Regions for Mobile - North America #1
Highest Priority Regions for Mobile (Merchants Ranking NA #1)
n Western Europe
n South America
n North America
n Middle East
n Eastern Europe
n Australia
n Asia
n Africa
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Highest
Priority
Lowest
Priority

71
BACK TO TOP
Beyond measuring market perspectives on the most valued benefits and preferences related
to mobile payments, the Annual Mobile Payments and Fraud Survey has also looked at what
merchant, payment and risk organizations consider the greatest obstacles to growing consumer
adoption of mobile payments. As the dynamic mobile payments market continues to evolve,
organizations potentially face obstacles around accepting payments efficiently across multiple
platforms, risk management and security concerns, as well as keeping up with new payment
types.
So far organizations have been most likely to consider “Making it easier for consumers
to transact” the biggest obstacle to the adoption of mobile commerce, but the share of
organizations that report this has declined each year, from 36% to 24% across all four years of
the survey. “Addressing consumer security concerns” and “Managing the complexity of new
payment types” are not far behind as being considered the biggest obstacle for mobile, as
indicated by 21% of organizations. While the share of organizations who consider “Addressing
how to manage fraud risk” the greatest obstacle hindering mobile adoption was nearly cut in half
last year, it increased to 16% this year as the fourth biggest obstacle, only ahead of “Making it
possible to take payments more efficiently.”
While organizations most concerned with “Making it easier for consumers to transact” have
declined each year, those concerned with “Managing the complexity of new payment types” have
increased each year, tripling since 2012. As more mobile wallets and payment methods have
continued to enter the market, more and more are concerned with keeping up as an obstacle
to growing mobile adoption for their organizations. This seems to have been at the expense of
attention or focus on security and risk concerns.
Obstacles to Adoption of Mobile Adoption
Biggest Obstacle to Mobile Adoption (All) 2012 2013 2014 2015
Addressing consumer security concerns 19.4% 27.7% 24.4% 20.7%
with the platform
Addressing how to manage fraud risk 14.2% 20.1% 11.3% 16.4%
Making it easier for consumers to transact 36.0% 28.1% 27.8% 24.1%
versus just shopping
Making it possible to take payments 12.6% 14.3% 14.3% 13.0%
more efficiently
Managing complexity of new payment types 6.5% 7.9% 19.5% 20.7%
Other 11.3% 2.0% 2.8% 5.0%

72
BACK TO TOP
What organizations consider to be the biggest obstacle to growing mobile adoption for their
company varies quite bit across the various types of organizations surveyed. Merchants are
most likely to be concerned with “Making it easier for consumers to transact,” service providers
see “Addressing consumer security concerns” as the biggest obstacle, acquirers and card
associations are most concerned with “Addressing how to manage fraud risk,” while card
issuers are most likely to consider “Managing the complexity of new payment types” the greatest
obstacle to mobile adoption facing their organization.
Obstacles to Mobile Adoption - Organization Type
n Address consumer
concerns with
platform security
n How to manage
fraud risk
n Easier for
consumers to
transact versus
just shopping
n Take payments
more efficiently
n Managing
complexity of new
payment types
n Other
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Acquirer Card
Association
Card
Issuer
Merchant Service
Provider
Biggest Obstacle to Mobile Adoption (Organization Type)

73
BACK TO TOP
Looking more closely at merchants, the data shows that what they consider the greatest obstacle
to growing mobile adoption is influenced by the types of goods or services sold. There are 12
industries where at least one-third of merchants consider “Making it easier for consumers to
transact” the biggest obstacle to mobile adoption, including Flowers/Gifts, Travel, Toys/Hobbies
and Sporting Goods. There are eight industries where at least 20% of merchants say “How to
manage fraud risk” is the greatest obstacle, which include: Dating/Social Sites, Money Movement,
Financial Services, Apparel/Accessories and Gaming.
Obstacles to Mobile Adoption - Merchant Type
Biggest Obstacle to Mobile
Adoption (Merchant Type)
Consumer
Security Concerns
How to Manage
Fraud Risk
Make It Easier
to Transact
Take Payments
More Efficiently
New Payment
Types
Apparel/Accessories 22.6% 22.6% 32.3% 9.7% 12.9%
Digital Goods 17.9% 17.9% 32.1% 17.9% 14.3%
Computer/Electronics 23.1% 19.2% 26.9% 19.2% 11.5%
Health/Beauty 22.7% 4.5% 36.4% 13.6% 22.7%
Housewares/Home Furnishings 27.3% 22.7% 22.7% 18.2% 9.1%
Jewelry 23.8% 4.8% 38.1% 19.0% 14.3%
Sporting Goods 22.2% 16.7% 44.4% 5.6% 11.1%
Toys/Hobbies 16.7% 11.1% 44.4% 11.1% 16.7%
Food/Drug 23.5% 11.8% 29.4% 5.9% 29.4%
Books/Music/Video 30.8% 7.7% 30.8% 15.4% 15.4%
Specialty/Non-Apparel 36.4% 0.0% 36.4% 0.0% 27.3%
Travel 18.2% 0.0% 45.5% 18.2% 18.2%
Flowers/Gifts 30.0% 0.0% 70.0% 0.0% 0.0%
Professional Services 30.0% 0.0% 20.0% 0.0% 50.0%
Financial Services 22.2% 22.2% 22.2% 0.0% 33.3%
Gaming 33.3% 22.2% 22.2% 11.1% 11.1%
Office Supplies 37.5% 0.0% 25.0% 12.5% 25.0%
Dating/Social Sites 50.0% 33.3% 0.0% 0.0% 16.7%
Other Services 33.3% 0.0% 50.0% 0.0% 16.7%
Telecom 33.3% 16.7% 50.0% 0.0% 0.0%
Automobiles/Auto Parts 20.0% 0.0% 40.0% 0.0% 40.0%
Hardware/Home Improvement 40.0% 0.0% 0.0% 20.0% 40.0%
Mass Merchant 60.0% 20.0% 20.0% 0.0% 0.0%
Other 20.0% 20.0% 40.0% 20.0% 0.0%
Insurance 50.0% 0.0% 25.0% 0.0% 25.0%
Money Movement 75.0% 25.0% 0.0% 0.0% 0.0%
Direct Response 66.7% 0.0% 0.0% 0.0% 33.3%
Alcohol/Tobacco 50.0% 0.0% 50.0% 0.0% 0.0%

74
BACK TO TOP
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Organizations are only slightly more likely to consider it “Very Important” to be able to detect
mobile devices in online transactions today (42%) versus the inaugural Mobile Payments and
Fraud Survey (39%). While about 60% of organizations considered the ability to detect mobile
devices to at least be “Important” in this and last years’ surveys, there was about a 9% decrease
in organizations that consider this at least “Somewhat Important.”
Importance of Detecting Mobile Devices
n Not Sure
n Neutral
n Not very
important
n Somewhat
important
n Important
n Very Important
2012 2013 2014 2015
Importance of Detecting Mobile Devices (All)
24.6%
38.5%
13.8%
4.6%
18.5%
12.9%
50.7%
2.3%
5.2%
25.5%
16.8%
42.6%
2.5%
4.6%
30.7%
16.7%
42.2%
8.4%
7.3%
22.0%
3.4% 2.8% 3.5%

75
BACK TO TOP
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
There were some differences in how important an organization believes it is to be able to
recognize transactions coming from mobile devices based on the type of organization. Card
issuers put the most emphasis on this as all issuers surveyed said being able to detect mobile
devices is at least “Somewhat Important,” and two-thirds of issuers said this is “Very Important.”
While 10% of merchants say being able to detect when a transaction is coming from a mobile
device is “Not Very Important,” card associations are even more likely to say this at 25%.
Importance of Detecting Mobile Devices - Organization Type
Importance of Detecting Mobile Devices (Organization Type)
Acquirer Card
Association
Card
Issuer
Merchant Service
Provider
n Not Sure
n Neutral
n Not very
important
n Somewhat
important
n Important
n Very Important
26.3%
31.6%
5.3%
5.3%
31.6%
8.3%
41.7%
25.0%
25.0%
27.8%
66.7%
5.6%
46.4%
10.0%
34.5%
9.1%
28.9%
36.7%
18.0%
4.7%
11.7%

76
BACK TO TOP
Taking a closer look at merchants and segmenting them by revenue, we see that higher revenue
merchants are significantly more likely to consider it “Very Important” to be able to detect mobile
devices. While 54% of merchants earning at least $10 million per year in annual revenue
consider this “Very Important,” less than one-third of merchants earning less than
$10 million annually agree.
Importance of Detecting Mobile Devices - Merchant Revenue
Importance of Detecting Mobile
Devices (Merchant Revenue)
$5
Million
$5 - 10
Million
$10 - 25
Million
$25 - 50
Million
$50
Million
Very Important 31.0% 33.3% 54.5% 57.1% 53.7%
Important 0.0% 0.0% 0.0% 0.0% 0.0%
Somewhat important 37.9% 66.7% 36.4% 14.3% 29.6%
Not very important 17.2% 0.0% 0.0% 14.3% 9.3%
Neutral 0.0% 0.0% 0.0% 0.0% 0.0%
Not Sure 13.8% 0.0% 9.1% 14.3% 7.4%

2016_MobilePaymentsFraudSurvey_Report

2016_MobilePaymentsFraudSurvey_Report

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to 2016_MobilePaymentsFraudSurvey_Report

Similar to 2016_MobilePaymentsFraudSurvey_Report (20)

2016_MobilePaymentsFraudSurvey_Report