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Data for today’s episode is provided by Mercator Advisory Group’s report – IoT Payments: How the Internet of Things Is Influencing Payments.
Four payment modes are possible from one IoT device:
1) Using an IoT device for an in-person payment:
- Example: Using a smartwatch to pay for groceries in person at the store.
2) Using an IoT device to make an IoT Payment:
- Example: Having your smartwatch automatically scehedule a doctor’s appointment and then make a co-payment when you walk into the office.
3) Using an IoT device to make a recurring payment:
- Example: Using a smartwatch to pay for your newspaper subscription each month.
4) Using an IoT device for e-commerce:
- Example: Ordering and paying for pizza on your smartwatch.
The “internet of things,” shaped from advancements in technology, has resulted in an exponential rate of devices (things) connecting to the internet. This expansion of connections and data collection enables more processing powered by artificial intelligence to augment our daily decisions and abilities. Both consumers and merchants are capitalizing on this technology, with the strategic applications changing the way consumers and merchants transact.
Mercator Advisory Group’s latest research report, IoT Payments: How the Internet of Things Is Influencing Payments, provides a foundational framework for categorizing payments by bridging payments and technology to define and analyze four basic payment modes: in-person, online, recurring, and IoT payments.
“Consumers and merchants are rapidly adopting technology and utilizing the IoT, further digitizing their relationship. Prior to Mercator Advisory Group’s research on the topic, there was no concrete definition of the concept “IoT payment,” and thus it was impossible to analyze this complex market segment. In constructing a payments categorization framework that bridges technology and payments, it became clear to Mercator Advisory Group that payments are becoming increasingly online and recurring and moving in the automated data-driven direction of the internet of things, comments David Nelyubin, Research Analyst, Emerging Technologies at Mercator Advisory Group and author of the report.
This report has 21 pages and 8 exhibits.
Companies and other organizations mentioned in this report include: Amazon, Apple, Canon, Domino’s Pizza, Epson, HP, Intel, Microsoft, MIT, Netflix, Papa John’s, Procter & Gamble, Progressive, U.S. Department of Commerce, U.S. Department of Energy, U.S. Energy Information Administration, Wall Street Journal, Walmart, and Whole Foods.