According to a report by Forrester Research, businesses that collect, store and use peoples data are most at risk of attracting hackers and regulatory oversight. They also stand to suffer the most when consumers decide to prioritize privacy over convenience, something that is already beginning to shape behavior.
Internet companies may adopt fremium models, offering paid ad-free subscription services and more privacy. 26% of US online adults who use a desktop or laptop already use an ad blocker like AdBlock in their browsers.
In early 2016, the European Union is set to approve the new general data protection regulation, which would make companies in violation of the law liable for up to 5% of global revenues. In the US, companies can expect severe financial penalties as regulators also flex their muscles, a trend already underway.
As consumers start adopting mobile payment systems merchants will receive and store less data than with traditional credit card payment processing. Forrester forecasts that US users will make USD 83 billion in mobile payments in 2016.
That means merchants will have to manage with relatively anonymous customer transactions and find new ways to collect customer data. Forrester suggests retailers develop loyalty programs, e-receipts and communication preferences to encourage customers to volunteer personal information when they use a digital wallet.
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