{"id":23589,"date":"2020-03-19T11:34:05","date_gmt":"2020-03-19T10:34:05","guid":{"rendered":"https:\/\/www.intellias.com\/?p=23589"},"modified":"2023-11-09T16:02:20","modified_gmt":"2023-11-09T15:02:20","slug":"iot-payments-what-s-ahead-for-contextual-commerce","status":"publish","type":"blog","link":"https:\/\/intellias.com\/iot-payments-what-s-ahead-for-contextual-commerce\/","title":{"rendered":"IoT Payments: What\u2019s Ahead for Contextual Commerce?"},"content":{"rendered":"

Why reach for the credit card when you can use your phone to pay for your coffee? That\u2019s the kind of convenient, invisible payment experience we\u2019re getting used to. But what if you could just walk into your favorite coffee shop, pick up a hot brew already waiting for you at the counter, and dash out the door? Ahem, what about paying? Well, that\u2019s settled by a happy combination of analytics, connectivity, and payment infrastructure: the Internet of Payments.<\/p>\n

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Brainstorming a new payment service? Hop on a call with our FinTech team for a quick consultation! <\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t <\/span>\n\t\t\t\t<\/small>\n\t\t\t<\/blockquote>\n\t\t<\/section>\n

What is an IoT payment?<\/h2>\n
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IoT payments are machine-triggered payments based on real-time data analytics.<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\tMercator Advisory Group<\/span> <\/span>\n\t\t\t\t<\/small>\n\t\t\t<\/blockquote>\n\t\t<\/section>\n

Imagine your connected car\u2019s dashboard automatically suggesting you authorize a payment for fuel as you approach the pump.<\/p>\n

In the future, IoT payments might look like a wearable healthcare device sharing your prescription and payment details with a smart pharmacy vending machine or an AgriTech system paying for water and ordering supplies when certain conditions are met.<\/p>\n

By 2023, this new market of machine-to-machine (M2M) transactions will hit $27.62 billion<\/a> according to Medici Global. While some of this revenue will come from payments currently made using other channels (e.g. credit cards being replaced by in-vehicle digital wallets), new payments will also emerge, as the examples below illustrate.<\/p>\n

Cross-industry use cases for the Internet of Payments<\/h2>\n

Picture this: you\u2019ve just returned from vacation. At the airport, you pick up your car and are billed automatically as you drive out of the lot and through the toll gates onto the highway.<\/p>\n

As you head home, you receive a quick update from your smart meter, saying that your monthly electricity bill just went through. Your fridge has a quick update for you too, reminding you to reorder groceries since you\u2019re completely out of food. You ask your voice assistant to confirm all suggested items from the list and authorize payment as you pull into a store. You quickly pop in, grab some lunch, and head back to your car. As you pass the checkout, you get billed automatically.<\/p>\n

That\u2019s the kind of seamless contextual payment experience custom IoT development<\/a> can bring. And we\u2019re already seeing the early onset of it across industries.<\/p>\n

Smart cities<\/h3>\n

Cashless cities can be happier cities. Adding a sensor plus payment option to any object and connecting it to the network can eliminate a good dozen frustrating inefficiencies we deal with every day, from paying for transportation to paying taxes.<\/p>\n

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Consumers across the 100 cities [analyzed in the study] currently spend an average of 32 hours a year \u2013 nearly a full work week \u2013 on cash-related payment activities. Greater adoption of digital payments is estimated to reduce this figure to 24 hours a year, saving consumers in the 100 cities an average of over $126 million per year.<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\tVisa<\/span> <\/span>\n\t\t\t\t<\/small>\n\t\t\t<\/blockquote>\n\t\t<\/section>\n

But cashless payments aren\u2019t just a win for urban dwellers. Research by Visa indicates that eradicating cash can provide the 100 cities they studied over $470 billion in direct net benefits per year. Faster economic growth and improved wages plus productivity come as attractive side benefits.<\/p>\n

So what type of connected payment experiences should urban planners look into to capture those figures?<\/p>\n