HAMPSHIRE, UK–A new study from Juniper Research has found that the total transaction value of smart home payments, i.e. payments that occur via smart home devices, is expected to exceed USD164 billion in 2025: a dramatic over sevenfold increase from USD 22billion in 2020. Increasing use of voice assistants via smart speakers for eCommerce, propelled by rising user and merchant acceptance, will drive, it said, a dramatic growth of over 630 percent in total value over the next five years.
The report predicts that the use of smart displays will be transformative for voice payments in the home: by allowing users to see products and confirm purchases. To facilitate this, voice assistant vendors must ensure that the checkout process handoff between smart speakers and smart displays is seamless in order to unlock more complex and higher-cost purchases. For more insights, download the free whitepaper: Assessing the Smart Home Payments Opportunity.
The new research, Smart Home Payments: Segment Analysis, Use Cases & Market Forecasts 2020-2025 report, found that utilizing existing digital wallets is crucial to the success of smart home payments. It recommends that smart home device manufacturers combine the massive installed base of payment-enabled smart home devices, which will be over 2.7 billion by 2025, with popular digital wallets such as Google Pay or PayPal to best access existing digital payments users.
The research also found that connected TV payments will be highly significant: accounting for over 20 percent of total transaction values in 2025 and supported by strong levels of content purchases. However, the opportunities for connected appliance payments will be limited: accounting for under 1 percent of total smart home payments values in 2025, as they are restricted by the high price of payment-capable appliances and the lack of supporting delivery services.
“Smart home device vendors must prioritize payments acceptance by merchants [thereby] making the integration of digital wallets a top priority for smart home vendors,” said research co-author Nick Maynard. “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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