Payments in the Internet of Everything

As the payments technology market gets bigger, the size of the devices can continue to get smaller. This comes as the behind the scenes hardware battle in the Internet of Things world has begun to heat up.

Just days after Verizon announced ThingSpace and the company’s plans to adapt its network to handle a wider variety of sensor-embedded devices, partnering with chipset manufacturer Sequans Communications to cut the cost of building devices for Verizon; Intel, not to be outdone, announced its low-cost Quark chip line, designed to work in extreme conditions and cost between $2 and $3 apiece.

These companies join into an industry looking to connect everything from fashion to farm equipment, appliances to automobiles, and much, much more to the internet.

Noting this, as well as predictions that by 2020, there will be 50 billion devices connected to the internet; the economic impact of IoT will reach $1.9 trillion in economic impact from such factors as cost saving and increased productivity.

Combine this with the world’s desire to participate in cashless transactions and to make payments as simple and secure as possible, and the term internet of things payments is already commanding discussion.

Extending the Value in IoT Payments

With payments via mobile devices continuing to see adoption among consumers, payments via things is on deck. What started with the smartwatch, payments in the internet of things is an opportunity for consumers, businesses, payment providers, and more.

Whether it’s a ‘smart’ ski lift ticket that can allow you to pay-per-ski (as opposed to an all-day pass), a car that serves as the payment device as you pull through a drive-thru, or even the article of clothing that can serve as a token in strong authentication, bringing payments into IoT will be both a challenge and an opportunity on the hardware and software side.

Accenture sees five considerations in IoT that will provide the most value for everyone throughout the spectrum—from end user to financial organization:

• Uncover innovative new ways to use IoT to enable and help increase transactions and revenue
• Streamline payment processing to help reduce transaction costs and increase settlement speed
• Secure sensitive consumer information in connected transactions
• Create highly personalized and contextual digital payment experiences
• Monetize the additional data generated by connected devices

Whether it’s consumer or business paying through IoT, the payments behind the trend will need to be fast, secure, international, and provide visibility, transparency, and simplicity.

As the world enters this exciting time of connected devices and payments evolution, we welcome you to learn more from the following resources:

• B2B Mobility Trends Highlighted in New Infographic
• Samsung Pay and Android Pay Rise to Answer Apple Pay
• Enabling Mobile Payments for Closed loop Private Label Cards
• Contactless Payments: When There’s A Need for Speed
• Barriers to use of Mobile Payments
• The Next Big Thing? Wearable Payments

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