Internet of things and the future of payments
Having initially focused on fitness and health, next-generation wearables such as the Fitbit Ionic and Garmin vivoactive 3 smartwatches are making life on the go simpler than ever with easy and more secure contactless payments thanks to digital tokenisation technology.
Welcome to the world of smart fashion. Clothing will be packed with technology, making what you wear functional and comfortable, while reducing the burden of multiple devices. Payment technologies will incorporate into clothes, enabling you to communicate, plan and pay without having to reach for your wallet or phone. Built-in batteries will be thin, flexible and efficient, minimising or perhaps even forgoing the need to recharge.
Autonomous and connected cars are already here. Visa and Honda revealed a proof of concept connected car that makes paying for things such as gas and parking easy. Drivers no longer need to rummage through their wallets to pay; instead they pay via two in-car apps, which Visa has developed alongside its infrastructure partners.
When we look ahead to the rise of self-driving autonomous vehicles, we can see how the car will pivot into a roving lounge, freeing consumers from navigation and operation. With the Visa Token Service, a secure platform for mobile transactions, in-car payments will soon be within a driver's reach. Drivers will be able to view and complete purchases to smart parking metres and fuel pumps directly from their car consoles.
Homes today already contain devices such as video consoles, voice-activated smart speakers and smart thermostats. Present IoT smart home solutions can even automatically replenish supplies, with Samsung and Trustonic's connected refrigerators able to place orders directly.
Adoption of smart household devices, especially in more developed markets where connectivity via central internet hubs will facilitate purchases by various household devices. Voice-activated speakers such as Alexa Echo and Google Home will be the most common way for consumers to search for anything online and even contact customer service. A future smart home will remember your preferences and past purchases, whether paying bills, grocery shopping, travel planning or gifting.
The mobile revolution is enabling more interactions with consumers. Increased security and flexible points of sale mean that the divide between online and in-person is rapidly disappearing. IoT payment technologies have made it easier than ever to help consumers find -- and pay for -- products, as well as use coupons, points and other rewards.
IoT will revolutionise retail. As more devices become connected, they become platforms for commerce able to make a payment itself, support a payment to be accepted, or both. Consumers will expect personalised and efficient shopping experiences. Best-in-class retailers will provide product information that's tailored and responsive. Imagine having your food or purchases delivered to your door via drones or robot.
Cities worldwide are leveraging internet of things (IoT) to gain insights, cut costs, propel new business models and improve consumer user experiences. IoT is also enabling data-gathering to inform every element of city living, from street lighting to waste management. Visa's Innovation Centre in Dubai is dedicated to working with its partners to accelerate the development of smart cities.
With more than 20 billion devices expected to come online by the end of 2020, the future smart city is an integrated and responsive world that benefits the environment, people and government. Smart payment technologies can enable more efficient government services, providing convenience for citizens in paying taxes or for public transportation.
- The article was co-created with Visa, the world’s leader in digital payments