Visa argues how ‘things paying for things’ are driving commerce trends
More than 80% of Americans have a ‘strong’ interest in using connected devices to make purchases but are concerned around data and security, according to a new study from Visa.
The research, conducted alongside PYMENTS.com and titled ‘How We Will Pay’, aimed to find out payments preferences of Americans, specific behavioural patterns, buying habits and shopping preferences related to connected commerce. Visa described the trend as ‘IoT and Things Paying For Things’.
75% of the consumers polled had at least one connected device other than smartphones, computers or tablets, with 83% noted them to be time-saving and facilitating seamless and unattended checkout experiences. The most popular use cases were auto-paying at petrol pumps, as well as in-store purchases.
The study also noted an increase in ownership of connected devices, with an average consumer having 4.4 connected devices. Consumers owning more connected devices made more purchases that too across more product categories. 50% or more of the consumers studied used a connected device to make online purchases within a week of the study.
Despite speed and convenience topping the list to drive adoption of connected devices, consumers still considered trust and security an important factor. Consumers were more concerned about their financial safety the more they were connected. More than 75% of respondents cited data privacy and 69% cited order verification and accuracy. When it came to trustworthiness, over 65% cited card issuers and bankcard networks over retail channels, social networks and mobile device manufacturers to be more trustworthy.
Fiserv has also noted similar findings in its recent Expectations & Experiences consumer trends survey. Mark Ernst, CEO, Fiserv, said: “Bill payments and person-to-person payments from mobile devices are making their way toward the mainstream, while digital wallets are showing slow but steady growth reminiscent of the early days of online banking.” Speed matters most to consumers with 76% expecting payments to happen in real time.