We've come to expect a smooth payment experience at every corner, whether we're shopping online, in stores, at kiosks, or via our smartphones.These channels almost seem to be yesterday's technology when you think about the possibilities with the Internet of Things.
This is why the Internet of Things is going to have such a profound impact on payments. As reported by Forbes, in the next two years the global IoT market is expected to grow at a compound annual growth rate of 28.5 percent, from $157 billion in 2016 to $457 billion in 2020. IoT can be described as connecting any physical device to the Internet and allowing data to flow, thus enabling automation, real-time information and analytics. Enabling payments is the next stop for IoT devices to expand how and when customers pay.
The Internet of Things (IoT) is growing rapidly—8.4 billion connected "things" are forecast to be in use in 2017. That number is expected to increase to 20.4 billion in 2020, and starting in 2017, the IoT market is projected to be worth more than $1 billion annually.
One major use case that is expanding to the IoT is payment. Payment is now possible using a phone, wearable, or home assistant and is spreading to virtual or augmented reality experiences and connected cars. However, as the number of connected things increases, the number of end points vulnerable to attack also increases. Recent high profile IoT attacks (such as the malware attack using Mirai3 ) illustrate the vulnerability of certain IoT devices. While consumers demand the ability to make a payment wherever they are and with whatever device they are using, they also want the transaction to be frictionless and secure. This demand creates a challenge for merchants, issuers, and acquirers.
The story of the Internet of Things (IoT) has two parts: the evolution of devices that are now connected to the Internet, and the movement towards the machine-to-machine economy in which newly connected devices interact with each other.
Connecting more devices opens the door to developing new digital experiences for both consumers and businesses. One such experience is the payment transaction, including both the ability to pay and the ability to accept payment.
Digital payments continue to evolve, with the inclusion of payment-enabled IoT devices augmenting the browser and mobile payment experience. Consumers can pay using a range of newly connected devices, including connected cars, household appliances, and most recently, wearables. In parallel, the IoT is also changing the retail point of sale to include a number of new touch points, including parking meters, fitting room mirrors, and vending machines.
As a result, financial institutions, payment providers, and technology companies can now create innovative capabilities that deliver increasingly frictionless, relevant, and secure payment experiences.
Figure 1 illustrates the five key aspects of IoT payment:
• Device
• Connectivity
• Credentials
• Experience
• Security
As shown in Figure 1, IoT devices range from small wearable devices and shopping carts to home appliances and cars. The IoT device uses a connectivity channel to trigger a payment transaction, with technology depending on the environment. Payment credentials can be stored remotely in the cloud, or locally, in a secure element, depending on the form factor and payment use case. The consumer experience can vary; it ranges from pushing a button or using voice commands to a frictionless experience based on location or sensors. Data is secured using a variety of techniques to authenticate the consumer and transmit the payment credentials securely.
IoT payments can be implemented in a variety of environments, including:
• Automotive
• Homes
• Wearables
• Industrial
• Retail
IoT Payments Characteristics.
Certain characteristics of the IoT payments use case may have an impact on security.
Autonomous and invisible payment.
Many IoT payments scenarios only make sense if transactions occur invisibly or autonomously—that is, with no direct user interaction. However, user authentication is an important part of the security architecture of the traditional payments infrastructure. There is therefore a need for effective user delegation and authorization mechanisms.
Payment device identity.
Arguably one of the most important factors in securing IoT payments is an immutable way of identifying the device. Reliable identities enable devices to establish trust, communicate with each other, and also to send out data with confidentiality and integrity. In most cases, public key cryptography will be the most feasible security technology used to interact with IoT devices. The public key infrastructure (PKI) depends on assurances that the sender of an encrypted message is indeed the owner of the key pair.
The IOT Payments Market size is projected to reach USD 5.4 Trillion by 2028 from an estimated USD 155.53 Billion in 2021, growing at a CAGR of 66% globally.
Segmentation Analysis of IOT Payments Market:
By Component, Solution is the dominating component segment of the IoT payments market. Digital payment wallet is one of the fastest-growing platforms in contactless payment in the solution segment which allows keeping money in the secured virtual container which is generally used for payments, money transfers.
By Deployment Type, Cloud is dominating in the deployment segment of the IoT payments market and is anticipated to grow during the forecasted period.
By Organisation Size, Large enterprises are leading in the organization size segment of the IoT payments market. Enterprise with more than 1500 workforce considered as the large enterprise which adopts the digital payment solutions for flawless payment landscape
By Verticals, Retail and Ecommerce is the dominating in a vertical segment in IoT payment market. Retail and Ecommerce are anticipated to grow during the forecasted period as the integration of the online market, digital payment, and synchronization of electronic devices with the internet makes it the smoother option of payment for goods and services.
By Components
• Solutions
• Services
By Deployment
• Cloud-Based
• On-Premise
By Enterprise Size
• Large Enterprises
• SMEs
By Verticals
• BFSI
• Retail and Ecommerce
• Healthcare
• Travel and Hospitality
• Transportation and logistics
• Others
Regional Analysis of IoT Payments Market
North America holds the largest share in the IoT payment market. North America has a robust digital infrastructure that has vast connectivity throughout the region. Government policies on digital payments and constantly upgrading digital infrastructure creates an open space for companies to integrate digital transaction into a variety of business verticals which adds growth in Digital and IoT payment options.
By Region
• North America (U.S., Canada, Mexico)
• Europe (Germany, U.K., France, Italy, Russia, Spain, Rest of Europe)
• Asia-Pacific (China, India, Japan, Singapore, Australia, New Zealand, Rest of APAC)
• Middle East & Africa (Turkey, Saudi Arabia, Iran, UAE, Africa, Rest of MEA)
• South America (Brazil, Argentina, Rest of SA)
Because not many people abroad own washing machines and dryers, the demand for shared laundry facilities has increased. PayBlox offers cashless payment solutions that simply connect washing machines and dryers to mobile apps and cloud-based IoT systems via PayBlox boxes. Instead of looking for coins for washing machines and dryers, users can simply scan the QR code of the washing machine and dryers with the mobile PayBlox App and pay through a variety of methods, including: PayPal, credit card, debit card, mobile wallet and many other ways to pay. It not only brings good user experience to customers, but also enables businesses to manage multiple stores and projects through the background.
Through the Payblox box, it connects with the mobile APP and cloud IoT system to the coffee machine. Enables fast payment and can be paid through multiple payment methods. Whether in the office, restaurant, hotel, shop, can use cashless payment coffee machine and can easily provide customers with self-service coffee service. PayBlox's cashless IoT coffee machine or contactless smart coffee payment solution eliminates deployment costs, reduces operating costs and increases sales. Payblox cashless coffee payment solution, no need to queue up and no need to look for change to pay, directly by scanning the QR code to pay, wait for a while to get a cup of coffee.
This water dispenser with IoT payment solution is a cashless payment water dispenser that connects the water dispenser with the mobile APP and the cloud IoT platform through PayBlox's box. It allows users to pay with one click and is ideal for places with high traffic such as offices or factories. Our water dispensers are fully functional, giving customers peace of mind that the water they drink is safe and clean. With this cashless water dispenser solution, you simply scan a QR code on your smartphone, select the type of water, and then pay through the PayBlox App, so you can soon get a glass or bottle of clean and pure drinking water.
Whether driving a car, motorcycle, scooter or e-bike, PayBlox offers top of the line payment solutions. Simply link PayBlox boxes to cars, motorcycles, scooters and e-bikes for fast mobile payments and quick integration. With the IoT cashless payment solution, you can pay through a variety of payment methods, such as credit card, debit card, PayPal, e-wallet, etc. Simply scan the QR code and you can pay through a variety of payment methods. This not only enables fast transactions and reduced costs, but also a better security and risk management system that allows you to focus on managing or expanding your company.
Today, parking lots accept all forms of payment, including credit card, digital, mobile and traditional local payment methods. However, the PayBlox Smart Parking payment system provides a better and more efficient way to arrange and collect parking fees. Only parking customers have the PayBlox Smart parking fare system, which conveniently replaces coin or card billings. And we are also able to help many parking customers quickly find a parking space and pay through online or mobile devices. PayBlox cashless parking payment system can not only help you attract more customers, but also generate more parking revenue and bring a good customer experience.
Say goodbye to the days of consumers looking for change to wash their cars. With the development of the times, whether it is cash, debit cards, membership cards, IC cards, or through mobile payment, the trend of contactless payment for car washing is bound to become popular. Today's customers want to pay for their car wash with the most convenient car wash payment system, so PayBlox's cashless car wash payment solution will be a trend that fits the needs of The Times. Instead of traditional payment methods, PayBlox Cashless Car Wash Contactless payment solutions provide a better and more efficient way to facilitate and receive car wash payments. With the PayBlox cashless contactless payment car wash solution, customers simply scan the QR code with their phone to pay quickly and securely. This simplifies the collection and payment process of the car wash, making it more efficient and simpler.
PayBlox is committed to providing OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) payment solutions to meet the diverse needs of consumers and support business expansion. By connecting to mobile apps and cloud-based IoT management software through PayBlox boxes, you can seamlessly integrate software to stay connected to your business, creating more powerful and flexible solutions that enable businesses to improve profitability and simplify operating costs. We can not only customize the payment according to the customer's needs, but also can brand it with your own name.
July 2020, B2B API Tracker allows billing and processing of B2B payments can be simplified through open banking. Using the API, accounting platforms can accelerate payments by issuing invoices with built-in money orders and acceptance features. The open banking mechanism gives third-party providers secure and real-time access to customer financial information through application programming interfaces. This approach allows banks to offer bespoke financial products, especially payment solutions, to existing customers For B2B payments, you can also use an API that integrates payment data to minimize card processing charges, resulting in near-zero processing charges.
In general, that is the global opportunity analysis and industry forecast of the IOT payments market. The future of IoT commerce depends not only on the creation of use cases that solve a customer problem or improve the consumer experience, but also on the IoT economic ecosystem's ability to create and sustain trust in the ability to perform commercial transactions using an IoT device.
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