PIN is a safe bet for online consumer authentication, report says

Nine in ten (90 per cent) of frequent online shoppers are confident that PIN is a good authentication method for mobile commerce transactions.

Those are the results of a recent survey by myPINpad, provider of multi-factor authentication technology for touchscreen devices.

Following the survey, the company has released a new report, entitled PIN: From Brick to Click, which takes a closer look at the PIN, and if consumers are ready to use it on their smart devices the same way they use it, for example, at ATM machines.

The short answer is – yes, they are.

The report also says more than 40 per cent of all e-commerce in the UK is now carried out on a mobile phone, or a tablet.

“Banks’ ability to invest in innovation is in many cases inhibited by the need to maintain legacy systems, and by the overhead of regulatory compliance,” said myPINpad CEO, Phil King.

"But, for over 30 years, PIN had been used at ATMs and consumers are familiar with entering a four-digit code to access their bank account. Its introduction in the UK reduced face-to-face fraud by 69 per cent. We are now firmly embedded in the age of digital commerce. Having taken the PIN from ATM to the store, consumers are now ready to take the PIN into the digital age.”

Security compliance now requires an effective authentication system, especially with financial institutions involved in payment transactions. Their duty is to have a quality system in order to prevent money laundering and reduce fraud.

“They must now balance all of this with not just maintaining but improving the consumers’ experience,” the company says.