It’s no secret that The Internet of Things (IoT) is disrupting a number of industries, but are you aware of how it’s revolutionizing the payments industry? Your familiarity with how to accept credit card payments has already begun to change in small ways that are making a big difference. These changes brought about by the IoT can easily go unnoticed, so here are 3 important ways the IoT is disrupting the payments industry:
3 Ways the IoT is Disrupting Credit Card Payments
1. Encourages Spending
IoT apps have made payments basically automatic. Consider things like automatic bill pay. What about subscription services like Netflix that renew without interruption? Or rideshare giant Uber? Simply get in a car and travel to a destination without ever opening a wallet. The Internet of Things is all around us, simplifying everyday tasks.
Disney is one of the companies leading the way for the Internet of Things in the travel industry with their MagicBands concept. While not an entirely new technology, Disney uses the MagicBands to create a frictionless travel experience at their parks and resorts. Users simply wave their band to make a payment and purchases are tallied for a payment that syncs with their bank account. It has been reported that spending within the Disney parks and resorts has seen an uptick since the prevalence of MagicBands.
2. Inventory Helper
The printer toner is low, it’s slim-pickings in the K-cup drawer, and someone finished the last of the office coffee creamer. With the IoT, you’ll never run out of office staples again. Amazon is among the leaders in IoT who are ensuring that businesses like yours never go without business necessities by using computers or new tech to send a signal to Amazon before you run out of what you need. Leaving inventory to IoT will allow you to work on more important things, like how to accept credit card payments at your business.
3. Secure Authentication
Probably the most recognized disruption IoT has brought to the payments industry is biometric authentication. From wearable tech that is revolutionizing how to accept credit card payments to iris scans that provide proof of user identity, biometrics are enhancing the security of the IoT and allowing payments to occur without a second thought.
It has been estimated that the number of devices connected to the internet will reach 50 billion by the year 2020. With more and more technologies being controlled by smartphones or the internet, the economic impact of the IoT is astounding – Gartner, Inc. estimates an additional $309 billion in revenue to product and service suppliers by the year 2020.