Connected Tech Ownership Drives Changes in How Consumers Pay

That is the central takeaway from “How People Pay: Consumer Preference for Connected Technology,” the February 2025 PYMNTS Intelligence eBook. The report tracks how U.S. consumers adopt connected devices and how those choices influence payment behavior across channels, devices and income levels.

The data shows that while device ownership growth has slowed, usage patterns tied to payments continue to evolve, creating a widening gap between consumers who treat connectivity as essential infrastructure and those who see it as functional but sufficient.

The report finds that 76% of consumers now own four or more connected devices, up from earlier years as everyday products increasingly include embedded connectivity. Yet ownership clusters into three stable personas. Roughly 4 in 10 consumers remain in the “Basic Tech” category, relying on smartphones and laptops. About half fall into the “Mainstream Tech” group with broader but still selective device ownership. Only about 1 in 10 qualifies as “Connected Tech,” a segment that integrates connectivity deeply into daily life and commerce.

This stability suggests saturation rather than stagnation. Consumers are not abandoning technology, but many appear content with the devices they already have. What changes instead is how those devices influence purchasing behavior, payment choice and channel preference.

Key data points from the report illustrate how sharply behavior diverges across these groups:

• 48% of Connected Tech consumers used a digital wallet in the past 30 days, compared with 32% of Basic Tech consumers, making them roughly 50% more likely to rely on wallets for transactions.
• 60% of Connected Tech consumers did not use cash or checks in the past 30 days, a share that reflects a 34% decline in physical money usage compared to three years ago.
• 35% of Connected Tech consumers made their most recent retail purchase online, versus 24% of Basic Tech consumers, underscoring the link between device ownership and digital purchasing.

Beyond payments, the report highlights how demographics and income shape connected behavior. Millennials and bridge millennials lead in advanced device adoption, with 16% of bridge millennials classified as Connected Tech consumers. Baby boomers and seniors remain far more likely to stay in the Basic Tech category. Income plays an equally decisive role. More than 60% of consumers earning under $50,000 annually fall into the Basic Tech segment, reflecting practical choices rather than exclusion from the digital economy.

Importantly, the data shows that lower-income consumers are not disconnected. Smartphones and laptops provide sufficient access to digital commerce and financial services. What income limits is the expansion into secondary and tertiary devices that deepen engagement and shift payment behavior.

Another notable trend appears among Mainstream Tech consumers. This group shows a steady rise in mobile purchasing over the past three years, with 26% using a mobile device in one of their most recent transactions. This suggests that behavioral change does not require full immersion in connected ecosystems. Incremental shifts still matter.

The broader implication for banks, merchants and payment providers is clear. Growth will come less from pushing consumers to acquire more devices and more from designing experiences that align with how people already live and pay. Connectivity is no longer novel. It is normalized. That reality raises the stakes for usability, trust and seamless payment integration. The infrastructure is largely in place. The next phase is about how effectively it is used.