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The Internet of Things (IoT) is taking off in the everyday life of society. Many people already use wearables (wearable technology) that measure their physical activity or the quality of sleep, and several areas are already beginning to carry the adjective ‘intelligent’ thanks to the Internet-connected applications that are installed: intelligent homes, intelligent education, intelligent health care, intelligent vehicles, and so forth.
Importantly, one of the multiple applications of IoT devices is doing payments online. In order to respond to new needs and cross the dividing lines between physical and digital commerce, payment is becoming invisible by integrating into chatbots, connected screens, driverless cars and, in the future, into all connected objects.
By 2020, the number of objects connected to the Internet could exceed 26 billion. Given the fact that all these devices collect large amounts of data during their useful life, it is extremely necessary to take care of their security.
IoT as the future of payments
At first glance, it seems complex, but its essence pursues the opposite: to be as simple as possible. Nowadays, there are already success stories where the technology based on the Internet of Payments is used, which allows you to select purchase and pay for it at the push of a button. A clear example is the refrigerators that detect the food you are out of and buy it for you, but the potential behind this trend is much greater, as it is considered to be the next technology sector of hyper-growth.
To facilitate the shopping experience for the customer, sellers try to provide a payment experience without frictions. IoT is the main tool to make it a reality. For payments, the IoT implies that a consumer can pay in practically any form possible.
For instance, instead of using a credit card, consumers could pay with their smartwatch, their smartphone, a wearable, or even with a voice-activated device, such as Alexa. While for consumers this means an easy shopping experience, for merchants it means the extension of connectivity without requiring human intervention.
The security of data in IoT payments
Although IoT offers many advantages, it cannot be ignored that it bears the risk of a security breach. Given the fact that the amount of information shared between connected devices is huge, hackers looking for valuable data will probably try to get access. Thus, it is extremely important for any company transmitting sensitive credit card information to do so in a safe and secure environment.
The forecasts point to a more transparent model for the client. All the information would be more accessible and the entities would have to compete by offering a better service. It could also help to reduce delinquency rates, default rates and the black economy, as cash use aims to be minimal and all payments could be controlled to minimize the risk of fraud.
These are only the first impressions of a model that is willing to revolutionize the means of payment. Companies in the sector should reflect on how to take advantage of the new technologies that are emerging to offer a good user experience at the time of payment and ensure that it is fast and, most importantly, safe.
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