TNS Report Shows Smart IoT Device Payments Adoption Threatened By Consumer Security Fears

A recently released Transaction Network Services (TNS) report, which surveyed consumer attitudes toward smart payments, indicates that adoption of Smart IoT Device Payment 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 reportedly reveals that 26 percent of respondents that own a voice assistant have used it to make a payment, 57 percent would be willing to make a payment via a connected car if they owned one, and 45 percent would pay for groceries via a Wi-Fi refrigerator touch screen or compatible application.

While these figures show the promise of alternative integrated IoT based payment methods, the authors noted that 74 percent of respondents said that security concerns would stop them from making a payment via a voice assistant.

“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,” said Bill Versen, Chief Product Officer, TNS. “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 percent of respondents confirming they have made one or more payments on a portable connected device in the last month;
• 64 percent 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