IoT will impact payments in every industry, and Mercator is tracking that with our IoT Payments Model. As this article demonstrates, payment networks are investing significant dollars in an effort to make sure consumers will be able to spend money from their cars sometime in the future.
Of course, making a payment at a drive up window is very different than paying for a parking space that your car was guided to based on an IoT infrastructure connected to your mapping software.
“Mastercard sees itself as playing a similar role in creating connected car standards as it did for EMV cards.
“Our role is to ensure that in-car payments are safe and simple for consumers, merchants and card companies,” said Femi Odunuga, Mastercard’s senior vice president for digital future, products and innovation. “We’re still in a nascent stage for car commerce. The technology is there, and initiatives are progressing, but adoption is tempered by the fact that you need vehicles to operate the requisite software, merchants to sell on these platforms, and consumers to transact.”
Security is critical if consumers are to be willing to pay via connected cars. Visa sees cloud-based IoT payments and authentication via biometrics such as voice-activated commands as the way to bring connected commerce to cars at scale.
“Visa’s approach relies on its Visa Ready tokenization platform integrating with e-wallets such as Apple Pay to tokenize connected car payments and prevent consumers’ cards from being exposed,” said Bisi Boyle, Visa’s vice president of IoT.
Mastercard also sees biometrics and tokenization as key to securing IoT ecosystems.
“Connected car technology providers’ ability to quickly move into vehicle payments leverages the tokenization technology Visa and Mastercard have developed for mobile payments,” said John Moon, chief operating officer of connected vehicle platform provider Connected Travel.
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
