Connected Devices May Be the Payment Platforms of the Future
Today, Visa released the results of the How We Will Pay study, a collaboration with PYMNTS. The survey found over 80% of consumers are interested in using connected devices to make payments, and 75% already own at least one connected device.
A “connected device” is any smart device that connects with other devices through Bluetooth, Wi-Fi and Near Field Communications. Visa’s study showed the average American owns 4.4 connected devices: 47% own gaming consoles, 41% use activity trackers, 15% have smartwatches, 14% use voice-controlled assistance (Amazon Echo), and the remainder use connected thermostats and virtual reality headsets.
Even though Americans are rapidly adopting connected devices, safety remains a top priority for financial transactions. 76% of respondents said data privacy was a concern, and 71% were worried about data security.
Consumers trust banks and card issuers over retailers when it comes to making payments through a connected device. 77% said they wanted their financial institution to enable new payment options through connected devices.
Shoppers with multiple connected devices are more likely to make purchases across more categories than those with one connected device. 66% of participants believed connected device payments could streamline basic shopping experiences, like buying clothes or home improvement supplies.