Study: Nearly half of U.S. consumers ready to shop through IoT-driven devices

Consumers are growing increasingly comfortable using connected devices for daily tasks — and shopping is not far behind. 

 

As more devices connect to chatbots and virtual assistants, an increasing number of consumers are ready to embrace the automation and convenience delivered by IoT technologies. Nearly half of consumers (48%) said they would feel comfortable with a connected device, such as a refrigerator, ordering items on their behalf.

 

This was according to “Connected Consumer,” research from Worldpay. The study examined the opinions of approximately 20,100 consumers across 10 markets related to IoT, connected devices and the use of payments via the technology.

 

While shoppers are eager to use connected devices for shopping, 62% would want to approve all purchases beforehand, and 78% would prefer to be notified before the order is placed. 

 

IoT is also spurring the adoption of virtual assistants and chatbots. These services are also rising in popularity as an increasing number of consumer-centric devices, such as Amazon Echo and Google Home, support the technology.

 

That said, 35% of consumers would “probably” or “definitely” consider using a virtual assistant to perform a simple task. While 55% of consumers would welcome the convenience of a chatbot or virtual assistant shopping on their behalf, only 37% would allow a virtual assistant to have access to their payment information.

 

There is still work to be done in helping consumers fully embrace this technology, however. For example, respondents would like the virtual assistants and chatbots they interact with to have two personality traits: helpfulness and intelligence. Many respondents (48%) are also skeptical about a virtual assistant ever being able to conduct a conversation like a real person.  

 

However, these tools, along with robots and drones, open the door for consumers to experience automated ordering and delivery in new ways. U.S. respondents are fairly enthusiastic about using this technology in their daily lives. However, those feelings vary greatly across generational divides. 

 

While 62% of Millennials would allow a connected device to order something without asking, just 22% of consumers over the age of 55 feel the same. 

 

A significant number of consumers said they would be comfortable with drones delivering purchases to their home, and robots performing tasks within their homes, 50% and 49%, respectively. 

 

“The beauty of technology advancements means that there are many opportunities for virtual assistants and connected devices to make consumers lives easier,’ said Casey Bullock, general manager for North America at Worldpay. 

 

“If machines can offer consumers a ‘concierge’ style service that reduces day-to-day life admin and menial tasks then there’s no reason why they won’t want to delegate some of their shopping responsibilities – after all, we would all appreciate an extra bit of time to ourselves,” Bullock added. “In the end, consumers need confidence that machines can be trusted to make the right decisions and keep their owners informed and in control.”

 

For now however, the overwhelming majority of respondents (73%) expressed concerns about the manufacturers of these devices having access to their personal data. Meanwhile, 77% worry about devices being hacked by fraudsters. 

 

“No matter if done by a human or machine, it is vital for consumers to remain in control when they’re delegating payment tasks,” said Bullock. “Our research has found that there should always be a conscious ‘act of consent;’be that via a device notification, button push or a pre-set rule like a spending limit, being agreed in advance.”