Press release

TNS Report Shows Alternative and Cashless Payments Adoption at an Inflection Point with Security a Concern to Wider Usage

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Sponsored by Businesswire

In a study commissioned by Transaction
Network Services
(TNS) consumers expressed their openness to
embracing alternative payment options, including the use of wearables
and smartphones.
However, acceptance of cashless payments comes with a high degree of
concern surrounding the ability to secure these devices.

TNS’ study, Consumer Differences Shape Alternative Payments and
Cashless Systems Adoption
,*
surveyed more than 3,000
consumers in the United States, United Kingdom and Australia. It
explores their attitudes toward making payments on wearables,
mobile apps and cashless systems as well as the role of cash in the
payments mix. The study illuminates differences in opinion across
geographic location, age groups, and gender, and also highlights the
anxiety consumers have about security.

Some of the significant findings of the report are:

  • 44% of respondents are willing to make a payment using a wearable
    device like a ring or a bracelet;
  • Just under two-thirds (65%) expressed that 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 of respondents (55%) like using mobile payment apps on
    their smartphone to make payments because they are quick and easy. US
    adults are the highest adopters here with 59% preferring the
    convenience of mobile payment apps;
  • Only 60% of US respondents made on average at least one contactless
    payment each week, as compared to 75% of Australians and 79% of
    Britons; and
  • 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.

“This initial study reveals a promising trend for alternative payments,”
said Bill Versen, Chief Product Officer for TNS.
“Mobile and wearable devices are demonstrating strong acceptance, and
TNS believes this trend will only accelerate as the technology becomes
more pervasive.”

But the report also revealed that security remains a concern. “Merchants
need to continue to invest in and deploy payment systems that protect
against data breaches,” commented Versen. “As the report illustrates, a
lack of security is really the only gating factor to enabling a wider
adoption of cashless payments.”

The TNS report also provides some interesting insights into how consumer
payment preferences may evolve as the move to a cashless society gathers
pace.

TNS’ report is available to download here
or email solutions@tnsi.com to
request your copy.

Founded in 1990, TNS is a trusted partner to the payments industry,
providing services across Europe, the Americas, and the Asia Pacific
regions. TNS 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. TNS’
Network Operating Centers in the US, UK and Australia provide 24x7x365
support to all of its customers. TNS is a Level 1 PCI DSS certified
service provider and a global board member of the ATM
Industry Association
(ATMIA). For more information about TNS, 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 17
th – 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, ensures the veracity of the survey.

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.