INTELLIGENCE
Consumers Want Stronger Identity Verification Practices As high-profile data breaches and privacy incidents continue to make headlines, consumers are more aware and more concerned than ever about the security of their identity information, according to IDology. Fiftyseven percent of American adults surveyed say they are more concerned than they were a year ago that their personal information will be compromised in a data breach, and 83 percent feel extreme to moderate concern that their identities will be used to open fraudulent accounts. Despite this heightened awareness and growing fear of identity theft, many customers still do not take basic steps to secure their passwords, according to the firm. Forty-four percent of those surveyed admitted that they write their passwords down, while 73 percent rarely change them. Conversely, many consumers say they are open to using more secure authentication methods for online accounts, with 45 percent “extremely or very willing” and 92 percent expressing “some willingness” to do so. Meanwhile, consumer expecta-
tions are higher for the companies that they entrust with their personal identity information. Sixty-seven percent say they “strongly agree” that it is a company’s responsibility to protect consumer data. For some consumers, a company’s security measures influence where they will do business, with 56 percent reporting that they are “more likely” to choose a financial institution if they know it offers advanced identity verification methods. According to the survey, consumers view biometrics, knowledge-based authentication, and one-time passcodes as the most secure methods of authentication. The study also found that consumers prioritize ease of use along with assurance that their transactions and identities are secure. When opening an account online, respondents say they place a premium on security (88 percent) and ease (72 percent), with 31 percent of those surveyed reporting that they have abandoned signing up with a business or financial institution because it was too difficult or took too long.
Fast Fact
Most consumers (80 percent) are interested in mobile phone features that allow them to immediately identify and stop unauthorized credit and debit transactions; 72 percent value features that provide the ability to instantly see payments made with their credit and debit cards. Source: “2017 TSYS U.S. Consumer Payment Study,” TSYS
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IoT Spending Will Exceed $1 Trillion in 2022 Worldwide technology spending on the Internet of Things (IoT) will reach $1.2 trillion in 2022, according to International Data Corporation (IDC) forecasts. That increase will be realized through an anticipated compound annual growth rate (CAGR) increase of 13.6 percent for IoT spending from 2017 to 2022, as many projects transition from proof of concept into commercial deployments, and organizations continue to invest in rapidly expanding offerings in analytics software, cloud technologies, and business and IT services. IDC predicts that IoT spending growth will be strongest in the consumer sector, with an anticipated worldwide CAGR of 19 percent, followed closely by the insurance and health-care provider industries. Discrete manufacturing and transportation are expected to be the two largest industries for IoT spending in 2022, as both industries are expected to exceed $150 billion. Meanwhile, vehicle-to-vehicle and vehicle-to-infrastructure solutions will experience the fastest spending growth, with both expecting a 29 percent CAGR over the forecast period, followed by traffic management and connected vehicle security.
TRANSACTION trends | July/August 2018 3