The total global transaction value of purchases made using smart home devices is expected to rise from US$22bn this year to more than US$164bn in 2025, according to Juniper Research.
“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% in total value over the next five years,” the company says.
It also predicts that “connected TV payments will be highly significant; accounting for over 20% 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% 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.”
In addition, the research report recommends that “smart home device manufacturers combine the massive installed base of payment-enabled smart home devices, which will be over 2.7bn by 2025, with popular digital wallets, such as Google Pay or PayPal, to best access existing digital payments users”.