Study Finds Surge in Voice-based Commerce Adoption

“How We Will Pay” study explores how payments by connected devices
are becoming a natural extension of consumers’ daily lives

LAS VEGAS–(BUSINESS WIRE)–Money2020–According to the second annual “How We Will Pay” study
from Visa (NYSE:V) and PYMNTS.com released today, with 96 percent of
surveyed consumers now owning at least one connected device and the
average owning more than four, the already highly connected U.S.
consumer became even more digitally entrenched in 2018. In just one
year, ownership of voice-activated assistant devices alone nearly
doubled, as consumers looked for payments via connected devices to both
save them time and offer convenience.

“When consumers use Visa, they can trust that their payments will be
simpler and more secure,” said TS Anil, global head of payment products
and platforms, Visa. “By working with EMVCo® to create and support new
standards, we are increasing security and consistency in the consumer
payment experience, no matter where or how someone chooses to pay,
whether online, in stores or increasingly just by voice.”

In recent years, there has been an onslaught of new ways to pay that go
far beyond the card and make digital payments much more accessible.
Consumers now seem to be taking notice. The study found that over a
seven day period, more than half of consumers made an online purchase in
more than half of the categories tracked (e.g., groceries, clothing,
etc.), citing the main reason as a desire to save time and eliminate the
frictions associated with buying and paying in the physical world.

The full study is available here
and additional key findings include:

• The rise of voice commerce: Ownership of voice-activated
  speakers surged by 88 percent year-over-year – from 14 percent in
  2017, to 27 percent in 2018. Groceries (five percent) and food
  delivery (four percent) were the most popular categories in which
  early-adopters used voice-based commerce to eliminate friction from
  routine shopping experiences.
• Younger millennials edged out in being “most connected”: Bridge
  Millennials (30-40 years) and early Gen X’ers (40-50 years) have
  surpassed younger generations to become the “Super Connected.” Age is
  not the only surprisingly fact about these hyper-connected owners of
  six or more devices: the “Super Connected” group is 57 percent female,
  43 percent male.
• Why pay by device vs. card?: Saving time (77 percent) remains
  the leading reason to use connected devices for payments, followed by
  74 percent who said the convenience “improved their quality of life.”
  Gas, parking, restaurants and clothing were all categories in which
  more than half of surveyed consumers say they would prefer to use a
  more automated payment method than they use today.
• Tapping to pay viewed as fast and convenient: With contactless
  payments increasingly becoming the preferred way to pay at checkout
  around the world, U.S. consumers cited a desire to tap to pay over
  swiping a card for the speed and convenience contactless card payments
  deliver. Nearly two-thirds also said they are familiar with the
  contactless payment symbol, indicating you can tap to pay with a
  contactless-enabled card, phone or wearable device.
• Consumers carry less and less cash: The study found that almost
  half of respondents carry between $10-$50 in cash (47 percent),
  followed by 20 percent who carry only $0-$10. The top reason for
  carrying any cash is for tips (39 percent), followed by for use with
  cash-only small businesses (25 percent).
• Faster access to earnings in demand: Nearly 70 percent of
  consumers say that they would like to be paid their salaries weekly or
  in real time, rather than the standard bi-weekly/monthly pay cycle,
  citing a better ability to pay bills (53 percent) and manage cash flow
  (53 percent).
• Security remains top of mind: With the growing use of and
  dependence upon connected payments, concerns over data security and
  privacy were up by 11 percent over last year.

Through an evolving and multi-layered approach, Visa strives to expect
the unexpected, constantly monitoring the system and sharing
intelligence with partners to identify and stop fraud. One of the
security technologies Visa has been excited to advance is tokenization.
Visa made significant progress since the launch
of Visa Token Service in 2014, with a major
extension announced just last week.

Methodology

The “How We Will Pay” study, a PYMNTS.com and Visa collaboration, asked
consumers to respond to a variety of questions about behavioral
patterns, buying habits and shopping preferences related to connected
commerce. The study was conducted among approximately 2,800 adult
respondents ages 18 and older within the United States by PYMNTS.com on
behalf of Visa in July 2018.

About Visa Inc.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our
mission is to connect the world through the most innovative, reliable
and secure payment network – enabling individuals, businesses and
economies to thrive. Our advanced global processing network, VisaNet,
provides secure and reliable payments around the world, and is capable
of handling more than 65,000 transaction messages a second. The
company’s relentless focus on innovation is a catalyst for the rapid
growth of connected commerce on any device, and a driving force behind
the dream of a cashless future for everyone, everywhere. As the world
moves from analog to digital, Visa is applying our brand, products,
people, network and scale to reshape the future of commerce. For more
information, visit About
Visa, visacorporate.tumblr.com and @VisaNews.

Contacts

Visa Inc.
Kryssa Guntrum, 415-805-4488
kguntrum@visa.com