Gas Stations Offer Market Opportunity, TNS Report Finds

A recently released report from ETA member Transaction Network Services (TNS) has found that consumers are open to new commerce experiences at gas pumps, offering new revenue opportunities for retailers and payments companies.

“The Market Opportunity for Secure Commerce at the Pump” report found that 71 percent of consumers in the United States prefer to pay at the gas pump than inside a store with a cashier. This preference for payment at the pump offers new opportunities for revenue. Over half of consumers said they would be interested in buying other items at the pump if the option were available.

Three in four consumers aged 25 to 34 are interested in buying other items at the pump, and in the U.S., two in three of these young consumers would like to order and pay for prepared food at the pump. Further, 62 percent of Australians of the same age would like to receive prepared food like pizza and coffee delivered to their vehicle while filling up their car. Seventy-three percent of respondents globally would be interested in being given a discount on their fuel price if they watch an advertisement at the pump, the report said.

Payment preferences are also evolving among younger consumers. Half of consumers aged 25 to 34 globally have reported using a mobile app or QR code to pay at the pump. A third of Americans at any age have used mobile payments at the pump. Sixty-eight percent of respondents confirmed that they preferred to pay by card or via a mobile app rather than using cash at a gas station, the report found.

“In a world where technology and convenience have turned customer demand into customer expectation, our survey uncovered evidence that suggests consumers are looking to securely engage in more commerce opportunities at the pump,” said TNS’ Chief Executive Officer, Mike Keegan, in a press release, “we appear to be at the crossroads of a new shift in consumer behavior, and forward-looking merchants that adopt and implement new technologies and provide broader services will benefit the most.”

Click here to read the report.