Why 41% of Consumers Stick to Basic Tech While 10% Push the Limits

Instead, they fall into three distinct camps that reveal not only what devices they own, but how they live, shop and pay.

The PYMNTS Intelligence report “How People Pay: Consumer Preference for Connected Technology” shows that the number of connected devices in households in the United States has been rising.

More than three-quarters of consumers now own at least four connected devices. However, the data suggests ownership is not the whole story. How consumers engage with these devices sorts them into three personas, each with its own distinct relationship to the digital economy.

• Basic Tech (41% of consumers): These users tend to stick with the essentials, mainly smartphones, laptops and TVs. Two-thirds own a smartphone, about one-third have a laptop or smart TV, and most stop there. Sixty percent of low-income consumers fall into this category, showing how affordability plays a role in limiting device adoption.
• Mainstream Tech (49% of consumers): This is the dominant group. Nearly all of them own smartphones, laptops and smart TVs. Over 60% branch into tablets and at least one-third have gaming consoles or smartwatches. They are increasingly using mobile devices to shop and digital channels to browse and buy. More than 26% did so in their most recent purchase, up from the low teens three years ago.
• Connected Tech (10% of consumers): These are the heavy adopters. Tablets, consoles, wearables and voice-activated speakers are the norm. Cars with built-in connectivity, security systems, virtual reality headsets and smart appliances are common. Nearly half used a digital wallet in the last 30 days, and they are 34% less likely to use cash than they were three years ago.

The rest of the report reinforces how sharply these personas diverge. As might be expected, it is the young generations that are proving to be relatively tech-savvy. They’re using a range of devices to conduct everyday life, and especially to pay for goods and services.

Millennials and bridge millennials are three times more likely than baby boomers to be in the Connected Tech group, showing a generational skew.

Income also matters, as households earning more than $100,000 are more likely to fall in the Connected Tech segment than those earning less than $50,000.

The study also finds that Connected Tech consumers are more inclined to make retail and restaurant purchases online, suggesting their payment preferences and expectations are reshaping commerce itself.