Study: 80% of shoppers want to use connected devices for purchases
- More than 80% of Americans have a strong interest in using connected devices to make purchases while still showing concern about data security, according to a study by payment card provider Visa and PYMNTS, an online publication that covers payment technology.
- The study found that 75% of consumers have at least one connected device in addition to a smartphone, computer or tablet, including activity trackers like a Fitbit, smartwatches and voice-controlled assistants. More than 80% of respondents said that connected devices save time and make purchases easier. These consumers most want the ability to automatically pay at gas stations and in stores. More than half of the respondents had made online purchases through a device within a week of the study, with the top three categories being travel services, household repair and entertainment.
- Visa also enlisted 13 additional companies to participate in its token service provider (TSP) program, which uses a digital tool to replace cardholder information like account numbers and PINs with a unique digital identifier that can be used for payment without revealing private data.
As many marketers already recognize, there’s sometimes a split between what people say they want more of and what they're actually comfortable with adopting. When it comes to mobile payments, consumers generally say they like the idea of being able to make secure payments in a store with a simple tap or swipe of a smartphone or other device, but a different PYMNTS study from earlier this year found that mobile payment adoption has stalled, with under 5% of smartphone users saying they actually make purchases on an app.
The newer findings demonstrate consumers still place a high value on trust and security when it comes to making mobile purchases. More than 75% of respondents cited “data privacy” as a top concern, while 69% cited “order verification and accuracy” as key issues. Respondents place a greater trust in banks and networks to enable payment through connected devices than they do individual retailers. More than 65% of people said they trust card issuers and bank card networks most to handle mobile payments, far ahead of retail channels, social networks and mobile device manufacturers.
It's perhaps unsurprising that consumers are hesitant to adopt mobile payments when major data breaches occur frequently. In a letter to consumers on Wednesday, video game retailer GameStop warned that online transactions between August and February 2016 may have been compromised. Kmart, Chipotle, Bell Canada, Edmodo, HandBrake, HipChat, CloudFlare and several universities are just a handful of organizations that reported major data breaches so far this year. With that kind of track record, companies need to take greater steps to protect their customers and earn the trust of mobile users if they want to drive them to their mobile payments services.
- Visa via Business Wire Visa study: IoT and things paying for things are driving the future of commerce
- PYMNTS via Business Wire New survey shows mobile wallet adoption is a long, slow, stalled slog