IoT Devices to Become Common Financial Transaction Methods

Toronto, ON (Mar. 14, 2016) – Internet of Things (IoT) devices are garnering the attention of many marketers and consumers. While they may have different purposes, a December 2015 survey found that these devices may become common financial transaction methods, particularly wearables.

Timeframe in which select IoT devices will become common financial transaction methods

Cognizant, Marketforce and Pegasystems surveyed 500 senior banking and insurance executives. Some 20.4% of respondents said that wearables will become common financial transaction methods within a year. Over a third (38.9%) of respondents said that it will happen within two years, 31.8% said it will happen within five years and 7.0% said it will happen in 10 years. Only 1.9% of banking and insurance executives said that wearables will never become common financial transaction methods.

Respondents also felt that smart TVs will become common financial transaction methods. For example, 12.1% of banking and insurance executives said that these IoT devices will become common financial transaction methods within a year. Some 39.5% said it will happen within two years and only 6.4% said that it will never happen.

Connected white goods and smart-home controllers and connected cars will also become common financial transaction methods. But almost half of respondents feel that it will happen within five years.

Barriers to purchasing IoT devices and services

While the IoT has a wide-ranging impact across many categories, from healthcare to travel, cost may be stopping consumers from buying devices.

Indeed, November 2015 research from Accenture found that nearly two-thirds of internet users worldwide said that one of the barriers to purchasing IoT devices and services were the fact that they are too expensive.

About eMarketer

By gathering the latest research and news from over 1,000 sources, eMarketer has established itself as the world’s leading provider of internet and e-business statistics. eMarketer’s Web site is at www.emarketer.com.

eMarketer bases all of its forecasts on a multipronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company-, product-, country- and demographic-specific trends, and trends in specific consumer behaviors. We analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

In addition, every element of each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of each forecast means those assumptions and framework are constantly updated to reflect new market developments and other trends.

SOURCE: eMarketer