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Data for today’s episode is provided by Mercator Advisory Group’s report –IoT Payments: Taxonomy Driven Market Size and Company Rankings
IoT Payments Generate Surprising Revenue for Companies That Use Them:
- Among a broad cross section examined in a recent Mercator research study, companies with IoT payments made 4% of their revenue with IoT.
- Thats a huge amount for such a new product category.
- IoT payments grew 7% between 2018 and 2019 for companies using them.
- The category leader, Progressive Insurance, is estimated to derive 11% of its total revenue through IoT payments.
- Another early IoT adopter, Epson, derives 7% of its revenue from IoT payments.
- IoT payments are typically “closed loop”: the same company that owns the origination device owns the product ordered.
- IoT payments can also be “open loop,” allowing users to pick from a range of products manufactured by other companies to be ordered automatically.
About Report
IoT payments continue to drive increased revenue. Mercator research indicates IoT payments are growing up to 15% YoY and are part of strategic plans for Fortune 500 companies, some of whom indicate in annual reports that they expect IoT to disrupt existing markets.
Mercator Advisory Group’s latest research report, IoT Payments: Taxonomy Driven Market Size and Company Rankings, delivers taxonomy driven market research that provides IoT payment market size by year, company, origination product, NAICS code, and as a percent of company revenue. The taxonomy utilized will enable Mercator to conduct industry specific competitive research projects and will dovetail that research with all other research performed using the NAICS database.
“Fortune 500 company innovation and growth strategy plans involve IoT payments. Companies see initiatives involving IoT payments as a way to differentiate and grow new business. Of the companies and IoT payments examined, IoT payments grew at an estimated 7% (2018-2019),” comments David Nelyubin, Research Analyst at Mercator Advisory Group and one of the authors of the report.