Much like Pavlov's dog, the idea behind the Pavlok device is to train consumers to rein in their spending when temptation strikes.

The integration of Pavlok with bank account balances is one element of a new Internet of Things banking platform developed by UK-based Intelligent Environments.

The platform enables people to log into their bank and securely connect a range of smart devices. These devices then automatically respond to a user’s bank balance, helping them save money.

For Pavlok, consumers log into their credit card or bank account, connect the device and set a spending limit. When users near their self-imposed spending limit, their phone will display a notification. Finally, if users go over their limit, Pavlok will deliver an electric shock to their wrist.

If a shock doesn’t appeal, Interact IoT also works with other smart devices, such as Google’s Nest Thermostat. As with Pavlok, if a user’s account balance drops below their self-imposed spending limit, the bank will automatically turn the Nest Thermostat down to a user-defined temperature.

According to the Energy Saving Trust, turning your thermostat down by just three degrees will save £255 per year.



“With cashless payments like contactless, direct debits, and Apple Pay, it’s unsurprising we lose track of spending, so we decided to solve this by enabling smart devices to manage our overspending for us. This means customers can now get complete control and oversight of their finances without having to lift a finger.” says David Webber, managing director at Intelligent Environments. “Both Pavlok and Nest Thermostat are opt-in services so consumers can decide whether to switch them on or not. However, with the Pavlok integration users have told us they love it. They think it’s much better to get a little shock now, instead of a nasty one later.”