Internet of Things and Digital Payments
Although IoT enabled devices will vary in shape, functionality and application across sectors, the one major element that runs in parallel across these domains is payments. Paying at a grocery store with a connected watch, paying for fuel with a connected car, paying for eggs with a connected refrigerator, are a few scenarios out of many use cases developed to combine payments and IoT aimed at creating a safe, reliable and seamless payments experience for customers.
The Internet of Payments space is an appealing prospect for not only software and hardware developers, but also for banks and other FinTech companies that can help drive innovation in the payment space through the use of NFC (Near Field Communication) chips, payment apps, sensors, tracking devices, etc.
The opportunities for new data streams generated by IoT devices and sensors are endless and will serve to bolster decision-making accuracy in areas ranging from fraud prevention to ‘know your customer’ (KYC) requirements, to lending to targeted offers and recommendations.” The most tangible development trend being driven by IoT applications in the payment sector is an appreciable expansion of the payments acceptance network.