Payments from smart home devices are expected to grow a whopping 630% in total value over the next five years propelled by user and merchant acceptance of these devices, according to new data from Juniper Research.
Payments via smart home devices are expected to grow to $164 billion in 2025 up from $22 billion in 2020, Juniper forecasts. Smart displays will be transformative for voice payments in the home allowing more consumers to see products and confirm purchases. Juniper said voice assistant vendors — such as Amazon, Apple and Google — will need to work with smart display vendors in order to keep costs down and allow for the process to be seamless.
Juniper said existing digital wallets will be crucial to the success of smart home payments and the market research firm recommends that smart home manufacturers combine the installed base of payment-enabled smart devices, which will exceed 2.7 billion by 2025, with digital wallets such as Google Pay or Paypal.
“Smart home device vendors must prioritize payments acceptance by merchants; making the integration of digital wallets a top priority for smart home vendors,” said Nick Maynard, researcher at Juniper. “This integration will enable smart home vendors to deliver a compelling and familiar user experience, whilst also ensuring the security required for success."
TV payments are forecast to account for more than 20% of the total transaction values in 2025 and will support a strong level of content purchases. These opportunities for connected appliance payments, however, will be limited to under 1% of total smart home payments valued in 2025.
The full research can be found in Juniper’s Smart Home Payments: Segment Analysis, Use Cases & Market Forecasts 2020-2025 report.
