European consumers could be put off mobile payments by the “explosive proliferation of viruses and malware affecting mobile devices”, the EU’s network security agency warned in a report.

The European Union Agency for Network and Information Security (ENISA) study into the threats holding back the mobile money ecosystem highlighted the need for mobile wallet service providers to address security concerns and provide more visible safety features in their applications to ease the minds of consumers.

While mobile operating systems have solid security options in place, consumers are often unaware how to find them and as a result don’t use them.

ENISA also suggested consumers should adopt their own “minimum” security measures, and warned of the possibility of threats lurking elsewhere in the payments chain.

In addition to device and user-specific security holes, the agency highlighted the need to secure merchants’ point of sale (POS) equipment and the need for secure networking equipment.

The document states: “Despite this push towards mobile payments, security concerns still remain of paramount importance and one could say that consumer discomfort with the current state of play has inhibited mass adoption.

“The explosive proliferation of viruses and malware affecting mobile devices alongside the very real danger of lost or stolen devices has instilled a sense of uneasiness in the consumer mind about the implications of losing a large part of their digital lives.

“If we add a second dimension of money to this and the risk of unauthorised payments should a mobile device be lost, stolen or infected with malware then suddenly our mobile devices may become guardians of our financial freedom and the implications of losing our mobiles or them being susceptible to hacking or other such malfeasance skyrockets.”

The agency advises the EC and Member States on a range of matters related to network and information security. Its recommendations around mobile wallets are a result of a detailed study into the ecosystem and discussions with experts in the sector during November.