Visa Study (NYSE: $V): #IoT and Things Paying for Things are Driving the Future of Commerce
SAN FRANCISCO & NEW YORK - June 7, 2017 (Investorideas.com Newswire) 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. http://www.pymnts.com/how-we-will-pay/
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.
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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