The total transaction value of smart home payments, payments that occur via smart home devices, will exceed US$164 billion in 2025, from US$22 billion in 2020, according to Research from Juniper.
Increasing use of voice assistants via smart speakers for ecommerce, propelled by rising user and merchant acceptance, will drive a dramatic growth of over 630 per cent 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, Juniper says voice assistant vendors must ensure that the checkout process handoff between smart speakers and smart displays is seamless; unlocking more complex and higher-cost purchases.
Digital Wallet Ecosystems – Critical to Growth
The new research, Smart Home Payments: Segment Analysis, Use Cases & Market Forecasts 2020-2025, found that utilising 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.
Research co-author Nick Maynard explains: ‘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.’
Connected TV Payments Positive, but Connected Appliances Lack Traction
The research found that connected TV payments will be highly significant; accounting for over 20 per cent 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 per cent 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.