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Data for today’s episode is provided by Mercator Advisory Group’s Report: Internet of Things Technology and Consumer Devices: Machine Triggered Payments Continue Growth in U.S. Households
IoT Case Study: Canon Printers Offer IoT Replenishment Options
- In 2020, Mercator calculated that around 85% of all Canon USA printers (IoT-enabled) were advertised as Amazon Dash enabled.
- Of the 21 Alexa compatible Canon printers on the Amazon marketplace, only 6 printers (29%) also carried the additional certification of ‘Smart Reorders’ through the Alexa-Dash platform.
- In comparison, Canon’s U.S. website lists 42 printers that are enabled with Canon’s Auto Replenishment Service.
- Mercator estimates that 2.5% of Canon USA’s 2020 revenue can be attributed to IoT payments for ink/toner replenishment.
- The key development in Canon’s IoT strategy over this period has been increasing marketing on its internal Auto Replenishment Service for machine-triggered cartridge purchases.
- This change in Canon’s product marketing has been accompanied with a shift in strategy by Amazon, which now offers a 10% price reduction for all ink or toner reorders through the Dash Replenishment system.
- Mercator believes that IoT-enabled devices and replenishment, even in the current closed-loop model, presents manufacturers and card issuers with a tremendous revenue growth opportunity.
About Report
Mercator Advisory Group released a report covering IoT transactions and payments titled Internet of Things Technology and Consumer Devices: Machine Triggered Payments Continue Growth in U.S. Households.The research explains the current market, discusses the driving factors that influence rate of adoptions, and describes how different stakeholders can gain a foothold in this rapidly growing ecosystem.
The research covers how consumers currently pay for subscription models, leveraging that data to infer how IoT payments have a market-entry template for U.S. households. Mercator also provides an analysis of the industry-level developments in the smart/IoT consumer device sector, including strategies to influence card-on-file choices for smart replenishments. Research also includes data on VC investments in the IoT technology landscape.
“IoT transactions are not a new development, they have already become an integral part of the commercial payments space. However, the explosion of IoT devices and associated auto-replenishment purchases in the consumer marketplace is an emerging phenomenon that necessitates analysis,” comments Amy Dunckelmann, Vice President Research Operations, at Mercator Advisory Group. Dunckelmann continues: “Financial institutions and other stakeholders in card-on-file products need to leverage the growth of IoT transactions to create new channels for revenue and data. Consumers are indicating an increasing preference towards auto-replenishment for individual smart devices over traditional shopping patterns. This segmentation of one-time purchases is an expansion opportunity for all financial entities and payments specialists.”
