76% of Consumers Now Own Four or More Connected Devices

The way people use technology is changing, creating a complex situation for banks and retailers.

Even though more devices are connected, many people are happy with the basic technology they have. This contentment affects how they prefer to pay and how they interact with digital services.

The PYMNTS Intelligence report “How People Pay: Consumer Preference for Connected Technology” examined how much consumers like and use technology. The report grouped people into different “Tech Savvy Personas” to better understand their preferences and the challenges they face when trying new products and services. These groups — Basic Tech, Mainstream Tech and Connected Tech — were based on how many connected devices people owned and how excited they were about them.

The Basic Tech group had few connected devices, usually just a smartphone, laptop or TV, and often not all three. The Mainstream Tech group, which made up almost half of all consumers, typically owned smartphones, laptops and smart TVs, plus a few other devices like tablets, game consoles or smartwatches. The Connected Tech group, about 10% of consumers, owned a range of devices, including tablets, game consoles, smartwatches, voice-activated devices, security systems and smart appliances.

The report found that 76% of consumers owned four or more connected devices. This suggests that people are slowly getting more technology over time, possibly because devices are easier to get or because more everyday items are becoming connected.

However, even with this growth, the study found that the types of devices people own haven’t changed much in the last two years. This means most consumers were generally happy with the devices they had. The Connected Tech group, though, had different preferences. This satisfaction among the majority in the basic and mainstream groups showed that financial businesses need to offer digital services that fit these different user types.

Some key findings from the report:

• Different Age Groups and Advanced Tech: Younger generations like millennials and bridge millennials lead the way in owning technology. They were three times more likely to be advanced users than baby boomers. Specifically, 16% of bridge millennials were in the Connected Tech group. They grew up with a lot of new technology and now have buying power. This suggests that banks should focus their future digital plans on what these tech-savvy and wealthier groups expect.
• Income Affects Device Ownership: The report showed a link between income and how many devices people own. It found that 60% of consumers with low incomes (earning less than $50,000 a year) were in the Basic Technology group. While smartphones and laptops gave these consumers access to the digital world, having less money often stopped them from buying a wider variety of connected devices. This means efforts to help more people get online should focus on providing basic digital access rather than advanced tech.
• Mainstream Users Rely More on Mobile Devices: Beyond the very tech-focused Connected Tech group, the report highlighted a shift among Mainstream Tech users. These consumers were more likely to use mobile devices for shopping than they were three years ago, with 26% having used a mobile device for their most recent purchase. This steady increase among nearly half of all consumers shows a move toward using mobile devices first, which financial service providers must recognize and support, as it represents a large and growing group of users for mobile banking and payment apps.

The report also revealed how device ownership influenced payment habits. Digital wallets were a top choice for Connected Tech users, as 48% of them used a digital wallet in the past 30 days, making them 50% more likely to do so than people with fewer devices. This highly connected group also greatly reduced its use of physical payment methods, being 34% less likely to use cash than three years ago, with 60% avoiding physical money in the last 30 days.

Furthermore, Connected Tech consumers were more likely to shop online. The report found that 35% made their most recent retail purchase online, and 21% made their most recent restaurant purchase online, showing that owning many devices leads to a preference for online shopping.

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