Security concerns could thwart IoT payments growth

A new report from Transaction Network Services Inc. reveals a notable number of consumers own Internet of Things-connected devices, like smart assistants., Wi-Fi refrigerators and connected automobiles And many consumers have or are interested in using those devices to initiate payments. But security concerns run deep, with nearly three of four consumers in the U.S., U.K. and Australia admitting security concerns are impediments to adoption.

“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 concerns is a concern,” said Bill Versen, chief product officer at TNS. “[C]ompanies need to implement strong security protocols and communicate these measures to consumers to mitigate their concerns.”

In all, 26 percent of consumers surveyed that own voice assistants have used them to make payments. The trend is more common among Americans, where 30 percent of consumers owning voice assistants have used the devices to make payments. In Australia, it’s 25 percent, and just 23 percent of U.K. consumers have used voice assistants to make payments. Not surprisingly, consumers between the ages of 25 and 44 are most interested in making payments via voice assistants.

However, 74 percent of consumers overall said security concerns would prevent them from using voice assistants to make payments. Security concerns are most pronounced among Australians (76 percent) and least pronounced among Americans (71 percent). Women also seem to be more concerned about payments security than are men, TNS noted in its new report, Consumers Confirm Smart Payments Adoption.

Juniper Research estimated 8 billion digital voice assistants will be in use worldwide by 2023, up from 2.5 billion estimated to be in place by the end of 2018 – led by Smartphone-based assistants, like Google Assistant and Apple’s Siri.

Connected cars, fridges gaining

Connected cars are the latest innovation shaping the automobile industry. These connect to the Internet to help drivers carry out a range of functions like starting and stopping a car, accessing real-time traffic information and even making payments using dashboard controls. Nearly half (48 percent) of consumers surveyed for TNS said they were eager to purchase a connected car with payment capabilities. Well over half (57 percent) said they would be willing to make payments for things like fuel and parking via a connected car if they owned one.

Wi-Fi-connected refrigerators are another emerging consumer convenience with growing appeal. Among those surveyed, 45 percent would pay for groceries using a Wi-Fi-enabled refrigerator touch screen or compatible applications. Age is a defining factor, with interest greatest among younger consumers, particularly 16- to 34-year-olds.

The TNS-commissioned survey was conducted by U.K.-based research firm Kantiar in January, and elicited responses from just over 1,000 consumers in each of the three countries studied.

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.