New TNS Report Shows Significant Smart IoT Device Payments Adoption Threatened by Consumer Security Fears

A new Transaction Network Services (TNS) report which surveys consumer attitudes toward smart payments has confirmed that adoption of this technology shows substantial growth, but consumers have significant security concerns.

TNS Consumers Confirm Smart Payments Adoption* report evaluates US, UK and Australian consumer experiences with and attitudes toward smart payment technologies on Internet of Thing (IoT) based devices, including voice assistants, Wi-Fi refrigerators and connected cars. It reveals that an impressive 26% of respondents that own a voice assistant have used it to make a payment, 57% would be willing to make a payment via a connected car if they owned one, and 45% would pay for groceries via a Wi-Fi refrigerator touchscreen or compatible application.

While these figures show the promise of alternative integrated IoT based payment methods, its also important to note that 74% said that security concerns would stop them from making a payment via a voice assistant.

Bill Versen, Chief Product Officer for TNS, notes, Our survey clearly shows that consumers are buying into the latest payment technology as adoption figures are high especially among millennials and Generation Z, but the number reporting security fears is a concern.

It is estimated** that there will be eight billion digital voice assistants in use by 2023. If these estimates prove correct, then the market for payments made by voice could be over two billion users.

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Versen added, Our conclusion for the industry is that companies need to implement strong security protocols and communicate these measures to consumers to mitigate their concerns. To address this, TNS provides a managed tokenization service which allows merchants to provide secure provisioning and payment of consumer accounts for mobile and in-vehicle applications. More than three million connected cars are currently using, and benefiting from, our secure payment technology.

TNS report also highlights:

  • Payments on other IoT-based devices, such as smartphones and tablets, are popular with 53% of respondents confirming they have made one or more payments on a portable connected device in the last month;
  • 64% felt that making payments via Wi-Fi enabled devices made their lives easier;
  • The US is the most eager to own a connected car with payments capabilities, if the car is not too expensive;
  • In the UK, two in three adults aged 16 to 24 would be willing to make a payment via a Wi-Fi refrigerator; and
  • Security concerns are highest in Australia.

The report is available to download by clicking here or emailing [email protected].

Founded in 1990, TNS is a trusted partner to the payments industry and offers a broad portfolio of solutions, including secure and resilient transaction delivery services that are used by many of the top banks, transaction processors and ATM deployers around the world.

The organization has secured a strong payments heritage, providing services across Europe, the Americas and the Asia Pacific regions. TNS is a Level 1 PCI DSS certified service provider and a global board member of the ATM Industry Association (ATMIA). TNS secure network is supported 24x7x365 by multiple Network Operating Centers around the world. For more information about TNS, please visit www.tnsi.com.

ENDS

*KANTAR commissioned a survey on behalf of Transaction Network Services. The survey interviewed 1,050 US adults, 1,022 Australian adults and 1,046 UK adults. The survey was conducted by online self-completion interviews between 17th “ 21st January 2019 by Kantar. The survey is designed to be nationally representative of adults interviewed per country. The surveys use a quota sample based on age interlocked within gender and a regional quota. Post fieldwork correctional weighting within age, gender and region has been used to ensure the representativeness of the survey.

**Juniper Research https://www.juniperresearch.com/press/press-releases/digital-voice-assistants-in-use-to-triple

About Transaction Network Services:

Transaction Network Services (TNS) is a leading global provider of data communications and interoperability solutions. TNS offers a broad range of networks and innovative value-added services which enable transactions and the exchange of information in diverse industries such as retail, banking, payment processing, telecommunications and the financial markets.

Founded in 1990 in the United States, TNS has grown steadily and now provides services in over 60 countries across the Americas, Europe and the Asia Pacific region, with our reach extending to many more. TNS has designed and implemented multiple data networks which support a variety of widely accepted communications protocols and are designed to be scalable and accessible by multiple methods.

TNS
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Clare Cockroft
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Rachel Watson
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