As of April 2017, South Korea are becoming a coinless society as shoppers will be handed pre-paid cards instead of change in a country-wide trial. If the trial is successful, bank officials will allow change to be transferred straight into the shoppers' bank accounts by next year.
This news follows attempts across Europe to encourage greater use of new payment methods, in what are predominately cash societies.
Almost four in five (77%) British consumers have concerns about using new payment methods Paul Hastings has revealed.
A survey of over 2,000 consumers highlights how security fears are preventing many consumers from embracing new payment technologies, yet providers of new methods are often leading the way in creatively addressing fraud and security risks.
The survey was part of an examination by Paul Hastings into the current attitudes of businesses and consumers towards new payments and their potential use of future payment methods.
The risk of fraud was cited as the main reason (59%) for UK consumers being unwilling to use new payment methods, followed by data security incidents (49%) and the risk of theft (45%). The survey also showed that around a quarter (27%) of British consumers do not currently use new payments methods.
When asked what the most desirable feature of a new payment method would be, nearly half (49%) of those surveyed said a reduced risk of fraud. However, Paul Hastings notes that fraud risks exist with traditional payments methods and new payment method providers are often at the forefront of the development or adoption of ways to addressing fraud risks, such as the use of tokenisation, which helps drive both product and security innovation.
Fintechs are likely to be very creative about how they manage fraud and security risks and to invest significant amounts of money and time in such methods, which may include increased authentication at the point of sale and behaviour monitoring for fraud.
Ben Regnard-Weinrabe, partner in the Global Banking & Payment Systems practice at Paul Hastings, based in London, said:
"Our research shows that many British...