Digital payments have become much more accessible in recent years. Consumers are more connected than ever before, with many now owning new devices such as voice-activated speakers and smart TVs as well as smartphones, and this is changing the way we pay.
New research from Visa and PYMNTS.com has found that connected devices and apps are increasingly driving retail spend at the expense of buying in a physical store, particularly in certain sectors. For example, 28% of consumers surveyed who had purchased clothing in the past seven days did so online.
Smart speakers such as Amazon’s Echo and the Google Home Hub have also become an important medium for commerce. The gadgets were owned by 27% of consumers in the latest study – up from 14% last year – and 28% of these respondents had used them to make a purchase in the past seven days. A common use case includes buying food – both groceries and take-away orders.
Convenience is a key factor in consumers choosing to buy things via a connected device, the researchers found. In the survey, 78% said they make purchases using connected devices because it saves them time, and 74% said the devices improve their quality of life because they don’t have to go to a store. Consumers also appreciate being able to buy things as they go about their daily lives – commuting, working or taking care of the kids.
Security remains a top priority, however. Consumers’ growing use of and dependence on connected payments has elevated their concerns over data privacy and security when using them, Visa and PYMNTS.com said.
In addition to offering a seamless payment experience, businesses should strive to offer these consumers what they really want, the report concludes: “A shopping experience that marries utility with enjoyment, all while facilitating a fast, easy and convenient purchase. Modern consumers, young and old, will stand for nothing less.”
Superfast, always-on connectivity will only increase the use of seamless, connected payments.
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