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Survey identifies trends in consumer sentiment towards credit card security, illustrates millennials more likely to pay in cash when retail breaches arise
San Jose, CA (PRWEB) July 02, 2014
NXP Semiconductors N.V. (NASDAQ: NXPI), the global leader in secure banking and eGovernment deployments, today announced the results of the Security Matters: Americans on EMV Chip Cards survey. To gain further understanding of how confident Americans are in the security of EMV chip card technology and debit/credit card purchases in general, NXP polled more than 1,000 American adults on credit card usage, behavioral trends and consumer sentiment toward the electronic and cashless movement. The survey arrives at a critical time when big-box retail stores and other chain merchants are experiencing a backlash due to recent security breaches compromising debit card users financial security and personal information.
Attitudes Towards Breaches and Retail Hacks
Overall sentiment reveals that while consumer confidence in credit card technologies remains high, Americans continue to demand better solutions that protect identity, personal information and financial data. With recent reports of compromises in security at Target, Neiman Marcus, PF Changs and other retailers, Americans are more likely to pay in cash following a security breach at large retailers, with the millennial age group (18 34 years of age) being the most likely to convert to cash (37 percent). For example, 80 percent of Americans are confident in their financial institution and the security of their financial accounts, as well as the security and protection of their credit/debit cards (73 percent). However, once a security breach at a major store occurs, consumers automatically turn to less convenient forms of payment (64 percent) such as cash to complete a purchase.
Credit Card Protection Technology
Respondents were asked a number of questions pertaining to security, confidence in financial institutions and credit cards, purchasing habits, geographic location, gender and general understanding of current magnetic strip and EMV technology. When asked specifically about the underlying technologies of a credit or debit card, Americans responded favorably, with 69 percent stating that EMV chip cards are making their debit and credit card transactions more secure, with only five percent feeling chip cards make their transactions less secure. When asked about the tap and pay feature available on some EMV chip cards, the most common concern expressed was an increased risk of theft (61 percent), followed by 37 percent expressing concerns about being charged incorrectly for purchases.
Security and Personal Information
Security of finances
From this survey, we see a high consumer awareness of EMV chip card security and readiness to adopt secure technologies that protect credit and debit card purchases, said Brintha Koether, Director Payments at NXP Semiconductors. We recognize the sensitivity and loss of trust consumers immediately feel after learning of a major security breach. We have seen how secure chip technology employed outside the U.S. drastically reduces fraud as well as builds consumer confidence in card transactions, financial institutions and retailers.
See separate press release: NXP is the Global Leader in Secure ICs in Payment Cards, July 2, 2014.
NXP Semiconductors N.V. (NASDAQ: NXPI) creates solutions that enable secure connections for a smarter world. Building on its expertise in High Performance Mixed Signal electronics, NXP is driving innovation in the automotive, identification and mobile industries, and in application areas including wireless infrastructure, lighting, healthcare, industrial, consumer tech and computing. NXP has operations in more than 25 countries, and posted revenue of $4.82 billion in 2013. Find out more at http://www.nxp.com.
From April 30th, to May 1st, 2014, an online survey among 1,011 randomly selected American adults who are Vision Critical American Community members. The margin of errorwhich measures sampling variabilityis +/- 3.1 percent, 19 times out of 20. The results have been statistically weighted according to education, age, gender, region, and ethnicity American Community Survey data to ensure a sample representative of the entire adult population of America. Discrepancies in or between totals are due to rounding.
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