Alternative payment acceptance grows, but security remains a concern

Consumers are open to embracing payment options such as wearables and smartphones, but they have high levels of concern about being able to secure such devices, according to a study commissioned by TNS Inc.

The study surveyed more than 3,000 consumers in the U.S., the U.K. and Australia regarding attitudes about making payments on wearables, mobile apps and cashless systems as well as the role of cash, according to a press release. The study illuminates differences in opinion across geographic location, age groups and gender, and the anxiety they have about security.

Some findings include:

• 44% of respondents are willing to make a payment using a wearable device like a ring or a bracelet.
• Just under two-thirds (65%) said security concerns would stop them from using a wearable device to make a payment.
• Australians are most concerned about security (68%), versus Americans (64%) and Britons (63%).
• More than half of male smartwatch owners have used it to make a payment.
• A majority (55%) like using mobile payment apps on their smartphone to make payments because they are quick and easy. U.S. adults are the highest adopters here with 59% preferring the convenience of mobile payment apps.
• Only 60% of U.S. respondents made on average at least one contactless payment each week, as compared to 75% of Australians and 79% of Britons.
• When asked about cashless systems specifically in a university setting, 73% of adults said that this was preferred over carrying cash, locating an ATM, or having the right change for a machine.

«Mobile and wearable devices are demonstrating strong acceptance, and TNS believes this trend will only accelerate as the technology becomes more pervasive,» said Bill Versen, TNS chief product officer, said in the release.

«Merchants need to continue to invest in and deploy payment systems that protect against data breaches,» said Versen. «As the report illustrates, a lack of security is really the only gating factor to enabling a wider adoption of cashless payments.»

Source: Kiosk Marketplace