Smart home payments space set for dramatic growth

The total transaction value of smart home payments will exceed $164 billion in 2025, from $22 billion in 2020, according to Juniper Research.

Increasing use of voice assistants via smart speakers for e-commerce, propelled by rising user and merchant acceptance, will be key here.

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The use of smart displays will be transformative for voice payments in the home, by allowing users to see products and confirm purchases.

To facilitate this, Juniper Research says that voice assistant vendors must ensure that the checkout process handoff between smart speakers and smart displays is seamles, unlocking more complex and higher cost purchases.

Digital wallets

Utilising existing digital wallets is crucial to the success of smart home payments. Smart home device manufacturers should combine the massive installed base of payment-enabled smart home devices, which will be over 2.7 billion by 2025, with the likes of Google Pay and PayPal, to best access existing digital payments users.

Connected TV payments will, meanwhile, be highly significant; accounting for over 20% of total transaction values in 2025, and supported by strong levels of content purchases.

However, the opportunities for connected appliance payments will be limited; accounting for under 1% of total smart home payments values in 2025, as they are restricted by the high price of payment capable appliances and the lack of supporting delivery services.