Visa recently conducted a study concerning how customers prefer to pay, called the “How We Will Pay” study, which focused around the preferences of those who own wearable payment devices, like the new Fitbit Ionic. As wearable devices become more prevalent, we are beginning to see connecting thoughts. This study illuminated correlations between the type of payment method customers use and what kind of preferences they have in regards to paying, efficiency, and concerns.
Wearables are the next big thing. They make paying as easy as ever for customers through devices like Apple Watches, Samsung Gear S3s, and now Fitbits. As they grow in popularity, customers buying habits change and adapt. This study showed that those who own wearable devices tend to purchase more than the average customer in every category of products, like clothing, food, personal care and grooming, and more. By accepting payments from a wearable device, your business would indirectly be enticing customers to spend more and earn more revenue.
Additionally, both wearable and non-wearable device owners prefer to go cashless (meaning a number of things: card, contactless, wearable methods of payment), showing the increasing inconvenience of cash-only businesses. This is due to a number of reasons, like convenience, compact size, easier to handle, and less transaction time. Payment methods are modernizing and becoming more convenient to the customer, to be sure to stay up to date with accepting rising forms of payment. Catering to your customers’ paying preferences does not only make them happy and appease them, it also coaxes them to spend more.
Over 85% of wearable users say that the devices increase personal productivity and save time. This also increases efficiency for them, which can make paying much easier and reduce irritation or unpleasant feelings about paying, which can arise from complications or inconveniences. Personal productivity comes into play with customer buying behavior, and can mean they contribute to shopping faster, and in this case they would likely want a seamless and equally fast form of payment.
The findings from this study shed some light about the growing trends with wearable payments and shifting preferences due to more convenient technology. It is becoming more and more important for businesses to accept newer forms of payment because people prefer it, they spend more when they pay this way, and it is more beneficial for them.
For more information, visit www.visa.com.
The “How We Will Pay” survey was conducted among a panel of approximately 2,600 adult users ages 18 and older within the United States by PYMNTS on behalf of Visa from April-May 2017.