Study: Connected Payments Surging

Study: Connected Payments Surging

September 19, 2019

A new report finds connected devices have turned consumers’ homes into commerce command centers. Shopping decisions and day-to-day activities are more integrated than ever before and voice is connected commerce’s “killer app.”

The findings of How We Will Pay 2019, a collaborative study conducted by Visa and PYMNTS, looked at how consumers use a wide range of connected devices to shop and make purchases. The national study examined 5,000 U.S. consumers who documented their shopping and purchasing experiences over a seven-day period in mid- to late-July of 2019.

The study found that consumers are making more purchases while engaged in everyday activities than they did a year ago. Making a purchase while watching TV has increased 19 percent (from 12.2 percent to 14.5 percent) and doing so while eating dinner has increased 4.9 percent (from 14.4 percent to 15.1 percent) between 2018 and 2019.  

Voice-activated devices impacting the online shopping experience

The research also finds the number of consumers buying voice-connected devices increased 14 percent from 2017 to 2019, and that 31 percent of voice-activated device owners have used them to make purchases.

“Not only has the share of consumers who own connected devices more than doubled since 2017, but they are also more likely to use those devices to make e-commerce purchases,” said research officials in a statement on the findings. “Roughly one in every 10 consumers today uses voice-enabled devices and apps to browse, shop and buy goods online. It’s a remarkable acceleration of a technology that is still relatively young, and for which the use cases for commerce are both nascent and very much evolving.”

Among some of the other findings in the study:

  • 76 percent of consumers report making online purchases while going about their daily routine.
  • Many respondents also say they shop while commuting to work (19 percent) or even while at work (19 percent). 
  • At 58 percent, 8.4 percent fewer consumers report making a purchase in a physical store, while 36 percent report using their computers, 26 percent report using mobile apps and 9.6 percent report using a voice-activated device.

The so-called Bridge Millennial generation, a persona described as “bridging” the millennial and the Generation X generations, own an average of six connected devices. This is the first generation of connected consumer with spending power, study authors noted.

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Joan Goodchild