Study: Shoppers drawn to smart devices stay abreast of security

A majority of Americans want to use connected devices to make purchases, yet they are keeping a keen eye on securing personal data.



This was according to a new study, “How We Will Pay,” from Visa and pymnts.com. The study was conducted among approximately 2,600 smartphone users aged 18 and older within the United States in May 2017. According to the study, 75% of consumers already have at least one connected device, in addition to their smartphones, computers or tablets. Yet, connected device ownership is on the rise.



The average consumer owns 4.4 connected devices, including game consoles (47%), activity trackers (41%), smartwatches (15%), voice-controlled assistants (14%), connected thermostats (9%) and virtual reality headsets (7%). Additionally, connected consumers make more purchases across more product categories than those with just one connected device. The apparel and footwear categories lead the way.



In 11 out of 19 product categories ranging from healthcare to accessories to food, 50% or more of the consumers studied made online purchases through a device within a week of the study. The top three categories included travel services, household repair and entertainment.



Eighty three percent (83%) of shoppers recognize IoT devices save them time and reduce friction when making purchases — subsequently creating an unattended checkout experience, regardless of device or platform. Within this seamless purchase experience, usage of auto-pay at the pump and in-store top the list (40%).



Despite the speed and convenience provided by 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. Their top concerns: data privacy, (more than 75%), and order verification and accuracy (69%).



Respondents also place a greater trust in banks and networks to enable payment via connected devices. Over 65% cited card issuers and bank card networks as the institutions they trust most to enable those experiences. This was over retail channels, social networks and mobile device manufacturers, the study revealed.



“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 VP, innovation and strategic partnerships, Visa. “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 break-through and start to really change the game.”