Phones may not replace wallets anytime soon

Phones may not replace wallets anytime soon

Using phones to make payments might be the next great idea, but before it can become widely adopted, businesses are going to have to work to shore up data security and PCI compliance in order to gain the trust of customers. A KPMG survey found only 23 percent are willing to use their mobile phones for payment.

Although it's a fairly low percentage, the outlook is bright. The survey shows that 30 percent of younger adults are willing to use their cellphones to conduct payment transactions. 

"Consumers are clearly open to using their mobile devices to conduct everyday transactions and will steadily move in this direction for years to come," said Mitch Siegel, a principal in KPMG LLP's Financial Services practice. "With mobile banking now gaining widespread acceptance, the challenge for banks will be to develop a mobile payment solution that effectively allays security and privacy concerns."

Siegel said mobile eCommerce is evolving and many companies are starting to innovate new ideas that will bring enhanced IT security to mobile payments.