Data Encryption Proves Critical in Swaying US Consumers Not Yet Interested in Everyday Apps

In an increasingly digital world, a significant share of consumers are relying more and more on single-service apps for their routine financial and shopping needs. But as much as demand for a streamlined, all-in-one finance and shopping app is on the rise, the jury is still out on whether these everyday apps fully meet consumers’ security expectations.

According to a recent PYMNTS Intelligence study, 55% of U.S. consumers felt uneasy about the security of an everyday app and 64% had reservations about its ability to safeguard sensitive personal and financial information, making it the main reason consumers said everyday apps lacked appeal.

“Among shopping-focused consumers, the shares are even higher, at … 67% of Americans, highlighting perceived data security concerns as the top barrier in adopting an everyday app,” the study said further.

To strengthen confidence in an everyday app, security features are crucial factors that can influence consumers’ views and adoption.

Among the various security features desired by consumers, two-factor authentication emerged as the top choice, with about one-quarter of Americans surveyed selecting it as the most important security feature. Data encryption was also highlighted as a critical security measure, with the report highlighting that this would do more than any other security feature to sway consumers who are not yet interested in an everyday app.

For European consumers, the security factor is equally critical. In fact, a similar PYMNTS Intelligence study focused on everyday app use in Europe shows that security is the most important factor Europeans consider when choosing an everyday app.

Similar to the U.S. consumers, they place an emphasis on robust security features such as two-factor authentication. It requires users to verify their identity through two different means, such as a password and a unique code sent to their mobile device. This is considered the most crucial security feature by nearly one-third of European consumers.

The importance of two-factor authentication is particularly evident in the United Kingdom, where 33% of consumers prioritize this feature. In Italy and Spain, 27% and 29% of consumers, respectively, also consider it essential.

Encrypted data, which ensures that sensitive information remains unreadable to unauthorized individuals, is another top security feature for about one-quarter of European consumers.

This strong desire for security is not surprising considering that Europe is home to the EU’s General Data Protection Regulation (GDPR), considered one of the strictest data privacy laws in the world. And as evidenced by the mega fines imposed on Big Tech firms that fail to comply with GDPR regulations, European authorities continue to demonstrate the lengths to which they are willing to go to protect citizens’ data and information.