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Digital Identity, Security & Online Fraud

Consumers opened to cashless payments, yet security still a concern

Wednesday 12 June 2019 | 10:45 AM CET

Acceptance of cashless payments comes with a high degree of concern surrounding the ability to secure these devices, according to a Transaction Network Services (TNS) report.

TNS’ study, Consumer Differences Shape Alternative Payments and Cashless Systems Adoption, surveyed more than 3,000 consumers in the US, UK 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 reveals 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.

TNS’ report is available to download here.