The value of payments that occur on smart home devices is expected to exceed $164bn in 2025, rising sharply from the expected $22bn in 2020, according to a report from Juniper Research.
This surge in value will be driven by the growing use of smart speakers that support e-commerce.
One development fostering this rise in smart home payments will be the use of smart displays that will enable users to see the products before they confirm purchases. To enable this, however, voice assistant vendors need to ensure checkout processes are seamless between smart speakers and smart displays.
These findings are part of Juniper Research’s “Smart Home Payments: Segment Analysis, Use Cases & Market Forecasts 2020-2025.”
A key point of the report is that payment-enabled smart home devices need to combine their services with digital wallets, such as Google Pay or PayPal, to ensure their success. The company claims there could be more than 2.7 billion smart home devices in use by 2025.
What might come as a surprise, is that TV payments are likely to be a major portion of smart home payments. The research claims they will account for more than 20% of total transaction values in 2025.
Research co-author Nick Maynard said, ‘Smart home device vendors must prioritise payments acceptance by merchants; making the integration of digital wallets a top priority for smart home vendors. This integration will enable smart home vendors to deliver a compelling and familiar user experience, whilst also ensuring the security required for success.’
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