US consumers want smarter payment through IoT; security still a top concern

Some 83 percent of US consumers are interested in IoT payment methods that would promote a more fluid buying experience, according to a recent Visa study. More than 60 percent view both their online and physical shopping experience as time-consuming and unproductive.

The average US consumer has four connected devices and 75 percent have other gadgets in their homes, apart from smartphones, computers or laptops. Among the most popular are video game consoles, smart TVs, activity trackers and smart/sports watches, voice-activated devices, smart cars, wearables and smart appliances, the study found.

“Nearly as many connected consumers own a voice-activated device, an Amazon Echo speaker or a Google Home Assistant (14 percent) as own a smart watch (15 percent), even though smart watches have been in the market nearly twice as long,” writes PYMENTS.com

However, the more connected devices they own, the greater their concern about security of their financial information or private data, according to more than 70 percent of respondents. It appears US consumers are not that different in terms of demographics, but they do have different activities involving connected devices.

Some 24 percent of respondents said most devices they own are video consoles, voice-activated speakers or smart thermostats used in the home, while 28 percent own devices such as wearables because they can bring with them outside. Another 23 percent are die-hard fans, owning at least six IoT devices, including smart cars and appliances. Still, 21 percent said they are still at smartphone, computer or tablet level, while 4 percent only owned a smartphone.

“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.”

The survey was conducted in May 2017 by Visa in partnership with PYMNTS.com. It is based on feedback from 2,584 consumers living in the US and who own at least a smartphone that has been used for online payments.