These 3 Connected Consumer Segments Will Define Commerce’s Next Decade

Once relegated to simple card-present transactions, digital payments today are deeply embedded into and across a web of connected devices, ultimately driving more personalized experiences and frictionless commerce.

The PYMNTS Intelligence report “How People Pay: Consumer Preference for Connected Technology” found that 76% of now own four or more connected devices, a testament to the increasing ubiquity of smart technology.

As emerging technologies integrate with consumers’ daily lives, the evolution of digital payments is becoming more than just a matter of convenience. It’s defining the future of economic transactions.

The PYMNTS Intelligence findings illustrated a clear correlation between device ownership and payment behavior. The more connected a consumer is, the more likely they are to engage in digital transactions, adopt alternative payment methods, and move away from traditional cash-based purchases.

But consumers aren’t one-size-fits-all, and the study categorizes consumers into three distinct technology personas. Understanding what defines their individual payments behavior could be crucial to anticipating what’s coming next.

Read also: Decoding the Connected Consumer: Personas, Preferences and Payment Strategies

Key Consumer Segments to Target in the Connected Economy

The demographic breakdown of payment trends revealed that millennials and bridge millennials (ages 30-45) are three times more likely to be advanced tech users than baby boomers. Having come of age in the digital era, these generations prioritize convenience and innovation in payments.

Their growing purchasing power makes them a focal point for businesses seeking to adapt. Unlike Generation Z, which is still building financial independence, millennials are in their peak earning years. They expect payments to be embedded within their lifestyle. For retailers and financial institutions, this means a pressing need to optimize payment experiences for mobile-first interactions.

Across all generations, three consumer segments emerged.

Basic Tech Users: Individuals with minimal connected devices, often limited to a smartphone, laptop or television.

Mainstream Tech Users: A step ahead, owning a wider range of connected devices including tablets, game consoles and smartwatches.

Connected Tech Users: The most advanced segment, embracing an ecosystem of devices such as voice-activated speakers, smart security systems and augmented reality headsets.

The data showed that Connected Tech Users are 50% more likely to use a digital wallet than those in the Basic Tech category. Consumers are increasingly relying on Apple Pay, Google Pay and PayPal for frictionless transactions, whether shopping online or in-store.

The near-elimination of cash in everyday purchases further supports the notion that physical currency is on the decline, especially among tech-savvy consumers. According to the report, 60% of Connected Tech Users have not used physical money in the last 30 days, a 34% increase from three years ago.

How Payments Innovation Is Reshaping the Connected Economy

Retailers and the food industry are feeling the ripple effects of payments innovation. The study highlighted that 35% of Connected Tech Users made their most recent retail purchase online, compared to 24% of Basic Tech Users. This suggests that the proliferation of smart devices is making digital commerce the norm, rather than the exception.

In the restaurant sector, similar trends emerged. Mobile ordering, QR code payments and contactless transactions are becoming integral to the dining experience. While 15.8% of Basic Tech Users made a restaurant purchase online, that number jumped to 20.6% among Connected Tech Users.

The implications for businesses are clear. If retailers and restaurants want to stay competitive, they must optimize their digital ordering and payment processes. Seamless checkout experiences, loyalty program integration and artificial intelligence-driven personalization will be the differentiators.

Ultimately, for businesses, the challenge isn’t just keeping up; it’s anticipating what’s next. Payment innovation isn’t just a matter of financial transactions — it’s a fundamental shift in how we experience commerce.