by Editorial Team
June 10, 2016

Pay-by-Car or even Pay-by-Washing-Machine? That will be reality: This year, the installed base of consumer focused connected things reaches 4 billion units. In 2020 this number will grow more than 3-fold to 13.5 billion units

Digitalization and increasing connectivity considerably influence the way we live and pay – with a rising trend: From connected driverless cars to healthcare trackers showing you a 3D display of your heart over interconnected workplaces to iris recognition tools. Diverse fields profit from digitalization – the possibilities are countless.

Obviously, this development leads to an evolution of payments, new processes, new types of transaction and a much higher level of automization, as well.

People envision an era of basically no restriction with their payments

This year, the installed base of consumer focused connected things reaches 4 billion units. In 2020 this number will grow more than 3-fold to 13.5 billion units. Hardware spendings for the consumer internet of things will take up from USD 546 billion in 2016 to USD 1.534 billion in 2020.

Today’s customer wants to buy anything anytime from any place with just one mobile tap. This naturally causes a steadily growing number of global cashless transactions.

Contactless payments are expected to hit the mainstream in Europe by 2020

The following figures considering the mobility sector reflect this development, as well: The global number of connected cars which will be able to automatically pay for parking fees and tolls will more than quadruple by 2020. The online booking volume for flights, trains and busses will also grow by almost 50% by 2020. Less and less people will find their ways to travel agencies in order to save time.

But digitalization and connectivity reach even far beyond influencing our lives at home from where people already conveniently spend their money: Consumer spendings in Smart Home technology are expected to grow by almost one third (29%) per year by 2020.

Global connected home device shipments will even grow at an annual rate of 67% until 2019. In parallel, the global smartphone penetration will further accelerate these developments.

Click here for the whole infographic about Connected Living and the Future of Payments.

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