Devices on the Internet of Things (IoT) are swiftly gaining popularity among consumers, particularly when it comes to financial transaction methods.
According to a survey conducted by Cognizant, Marketforce and Pegasystems in December 2015, wearables are a particularly popular option when it comes to using IoT devices for financial transactions.
20.4 per cent of the 500 senior banking and insurance executives surveyed believe that wearables will become common financial transaction methods within a year. A further 38.9 per cent believe that this move will occur within two years, while 31.8 per cent said that it will happen within five years and seven per cent within ten years.
Just 1.9 per cent of banking and insurance executives stated that wearables will never become common financial transaction methods.
In addition to wearables, respondents also believe that smart TVs will become much more readily used for financial transactions. 12.1 per cent of banking and insurance executives said that these IoT devices will become common financial transaction methods within the next year. 39.5 per cent believe it will take two years, while just 6.4 per cent believe it won't happen at all.
Connected white goods and smart-home controllers and connected cars are also expected to penetrate the market, although almost half of respondents think this will take longer, not becoming readily used for around five years.
Currently, it seems that cost is the main factor in preventing consumers from engaging with these products. Research conducted by Accenture found that nearly two-thirds of internet users worldwide said that one of the barriers to purchasing IoT devices and services is the fact that they are too expensive.
As the financial industry invests further in the IoT, the market will become more affordable and much more common practice among consumers.