IoT Payment Use Cases
IoT payments are payments that are carried out by IoT devices with some level of autonomy. IoT devices contain sensors and are connected to the internet, allowing them to engage in a payment process if certain “events” are triggered. Instead of paying with a card, users could pay with their wearables, phones, or voice-activated devices. This allows for a frictionless experience for the users and even allows businesses to use something other than the standard in-store terminal to perform payments. Here we will discuss some of the use case scenarios for IoT in payments.
IoT Payment Use Cases in Smart Cities:
IoT technology can be used in smart city initiatives. Adding sensors to any object, connecting them to the internet, and adding a payment option can help to reduce the inefficiencies that currently plague our cities. This will help make paying for everything from transportation to groceries and even taxes more efficient and easier for people. But this doesn’t only benefit the people living in the city, it also benefits the businesses in the city. By providing automated payment services, businesses can benefit from increased customer loyalty and higher profits. Research by Visa indicates that bringing automated payments to cities will result in faster economic growth.
IoT Payment Use Cases in Smart Houses:
Smart houses present an opportunity to enhance the payment process. Say you are out of milk; a smart fridge will be able to scan the items and place an order for the item missing. This results in reduced human intervention and will allow the consumer to stay stocked with the items they want. Sensors connected to all the devices in a house will notify if any device needs maintenance or if it needs to be fixed. Then the IoT device will notify the maintenance company and pay for their services automatically. This way the owners will never have to worry about keeping track of everything in their house by themselves. IoT payments can make maintaining homes easier, and less stressful for the owner.
IoT Payment Use Cases in Retail:
Amazon introduced its “cashier-less” stores in late 2021 and they are a prime example of how using IoT in payments results in a seamless user experience. The whole shop contains multiple sensors and IoT devices. They keep track of what items have been taken off the shelves and add them to the consumer’s virtual cart. When the consumer exits the shop their Amazon account is immediately charged with the price of the items taken and they are mailed a receipt. Thus, by using IoT devices, Amazon created a seamless and uninterrupted experience for consumers. This completely automated store is a prime example of how IoT devices can be used to make payments and user experiences more efficient.
IoT Payment Use Cases in Banking/Finance:
One-touch payments are a huge game-changer when it comes to automating payments. Consumers can use their NFC-powered devices to perform transactions. They don’t need to use their debit/credit cards for payments. Their mobile phones/smart watches can enable one-touch payments and seamless transactions. These tools keep track of contactless spending and can help deliver loyalty rewards to consumers. This increases and strengthens consumer loyalty to the brand.
How IoT Payment Will Advance:
Without a doubt, 2020 was a challenging time for many, but as life with COVID-19 settled into a routine, businesses sought out ways to keep their customers safe. Touchless transactions became more popular as COVID-19 rolled over. Research suggests that there will be an estimated 20% growth for these kinds of payments over the course of the next few years. Stores like Amazon Go and Amazon Fresh will become more popular with time. To sum it all up, IoT payments are the future of payments, and countries with flourishing IoT infrastructures will lead the way to contactless and efficient payment processing.