Mercator Advisory Group released a report covering IoT transactions and payments titled Internet of Things Technology and Consumer Devices: Machine Triggered Payments Continue Growth in U.S. Households.The research explains the current market, discusses the driving factors that influence rate of adoptions, and describes how different stakeholders can gain a foothold in this rapidly growing ecosystem.
The research covers how consumers currently pay for subscription models, leveraging that data to infer how IoT payments have a market-entry template for U.S. households. Mercator also provides an analysis of the industry-level developments in the smart/IoT consumer device sector, including strategies to influence card-on-file choices for smart replenishments. Research also includes data on VC investments in the IoT technology landscape.
"IoT transactions are not a new development, they have already become an integral part of the commercial payments space. However, the explosion of IoT devices and associated auto-replenishment purchases in the consumer marketplace is an emerging phenomenon that necessitates analysis,” comments Amy Dunckelmann, Vice President Research Operations, at Mercator Advisory Group. Dunckelmann continues: “Financial institutions and other stakeholders in card-on-file products need to leverage the growth of IoT transactions to create new channels for revenue and data. Consumers are indicating an increasing preference towards auto-replenishment for individual smart devices over traditional shopping patterns. This segmentation of one-time purchases is an expansion opportunity for all financial entities and payments specialists.”
This document contains 23 pages and 7 exhibits.
Companies mentioned in this research note include: Amazon, HP, GE, Discover and Canon.