Visa Study: IoT and Things Paying for Things are Driving the Future of Commerce
June 07 2017 - 7:00AM
Business Wire
A new study released today by Visa (NYSE:V) and PYMNTS.com,
entitled “How We Will Pay,” found that more than 80 percent of
Americans have a strong interest in using connected devices to make
purchases, with a keen eye toward security and data concerns. The
study was announced at the WIRED Business Conference where Visa is
introducing more than a dozen new global partners into its token
service provider program to bring payments to new form factors as
the Internet of Things (IoT) evolves alongside consumers’ growing
appetite for all things digital.
More Spending, Across More Devices, in Less Time
As the use of voice-controlled assistants and wearable devices
become more commonplace, consumers are citing adoption benefits
such as saving time, more frictionless payments, and efficiency
with day-to-day tasks. With benefits such as these, it is no wonder
that the number of connected devices has increased to 4.4 devices
per person on average in the age of the IoT.
The study found that 75 percent of consumers have at least one
connected device, in addition to their smartphones, computers or
tablets. 83 percent recognize those devices as saving time and
reducing friction when making purchases - subsequently creating an
unattended checkout experience, regardless of device or platform.
This seamless purchase experience is of interest to all
respondents, with auto-pay at the pump and in-store topping the
list at 40 percent.
“How We Will Pay” Study Fast Facts
- Connected device ownership is an
increasing trend. The average consumer owns 4.4 connected
devices including game consoles (47 percent), activity trackers (41
percent), smartwatches (15 percent), voice-controlled assistants
(14 percent), connected thermostats (9 percent) and virtual reality
headsets (7 percent).
- Consumers with more connected
devices make more purchases. Additionally, connected consumers
makes more purchases across more product categories than those with
just one connected device, with apparel and footwear leading the
way.
- Buying things, using a connected
device is widespread. In 11 out of 19 product categories
ranging from healthcare to accessories to food, 50 percent or more
of the consumers studied made online purchases through a device
within a week of the study. Top three categories included travel
services, household repair and entertainment.
Banks and Payment Networks Help Ease Trust and Security
Concerns
The study also showed that as speed and convenience continue to
drive adoption of connected devices, consumers still place high
value on trust and security. Importantly, the more connected a
consumer is the greater their concern is about their financial
safety. When asked, more than 75 percent of respondents cited ‘data
privacy,’ while 69 percent cited ‘order verification and
accuracy.’
Respondents also place a greater trust in banks and networks to
enable payment via connected devices. Over 65 percent cited card
issuers and bankcard networks as the institutions they trust most
to enable those experiences, over retail channels, social networks
and mobile device manufacturers.
“The category of payment-enabled devices is still in very early
days, yet this research shows just how much consumer interest and
understanding is starting to build for what these experiences can
offer,” said Jim McCarthy, executive vice president, innovation and
strategic partnerships, Visa Inc. “As we work with our banking
partners to make it easier to put payment credentials onto devices,
a few new consumer use cases will inevitably breakthrough and start
to really change the game.”
About the Study
As part of the “How We Will Pay” study, consumers responded to a
variety of questions that defined specific behavioral patterns,
buying habits and shopping preferences related to connected
commerce. The study outlines a clear picture of five distinct user
personas based on age, geography, purchasing preferences and
connectivity levels, providing in-depth of analysis of each group.
A detailed analysis of the personas, which range from The Super
Connected, who own the most number of connected devices, to the
Smartphone Centric, who rely only on their mobile phones, are
listed in the full report.
The study was conducted among a panel of approximately 2,600
adult smartphone users ages 18 and older within the United
States by PYMNTS.com on behalf of Visa in May 2017.
About Visa Inc.
Visa Inc. (NYSE:V) is a global payments technology company that
connects consumers, businesses, financial institutions, and
governments in more than 200 countries and territories to fast,
secure and reliable electronic payments. We operate one of the
world’s most advanced processing networks — VisaNet — that is
capable of handling more than 65,000 transaction messages a second,
with fraud protection for consumers and assured payment for
merchants. Visa is not a bank and does not issue cards, extend
credit or set rates and fees for consumers. Visa’s innovations,
however, enable its financial institution customers to offer
consumers more choices: pay now with debit, pay ahead with prepaid
or pay later with credit products. For more information, visit
usa.visa.com/about-visa, visacorporate.tumblr.com and
@VisaNews.
About PYMNTS.com
PYMNTS.com is reinventing the way in which companies share
relevant information about the initiatives that shape the future of
payments and commerce and make news. This powerful B2B platform is
the #1 site for the payments industry by traffic and the premier
source of information about “What’s Next” in payments and commerce.
C-suite executives, company founders and investors turn to it daily
for these insights, making the PYMNTS.com audience the most
valuable in the industry. It provides an interactive platform for
companies to demonstrate thought leadership, popularize products
and, most importantly, capture the mindshare of global
decision-makers. It’s where the best minds and best content meet on
the web.
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version on businesswire.com: http://www.businesswire.com/news/home/20170607005694/en/
Visa Inc.Katie Harris-Maines,
+1-415-810-4930KathHarr@visa.com
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