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viewpoint
How Will Consumers
Pay via THe InTerneT of THIngs?
As the Internet of Things (IoT) gains momentum, people are starting to speculate about how it will be monetized and where payments will t. Some think what’s needed is already what their company
does best. How fortunate for them! Others think bitcoin was invented just in time to enable IoT payments. And, there already are early exam- ples of how incumbents are com- bining payment technology with smart devices.
Let’s explore this and see what’s really going on. First, what do people mean by the Internet of Things? Generally, they’re talking about the intersection of three unrelated trends.
3 The vast amount of data and signals that the devices will generate which, when com- bined with big data analytics, may provide new, valuable insights to retailers, payments experts and others.
Put them all together, and it’s the Internet of Things.
In layman’s terms, and for the pur- poses of thinking about payments, what matters in the IoT is that the actors are the “things” themselves and not the people using those connected devices. So a printer that reorders its own cartridges when running low is right in the bulls- eye—but a wirelessly connected parking meter that takes patron- initiated payments is not.
If you believe the devices will be smart and able to take action when appropriate, how might they make purchases? And more importantly, how will they make payments? Do the “things” need new payment methods optimized for the neces- sary lights-out (no humans in- volved) processing environment
of connected devices? Or is the IoT
Viewpoint
By Russ Jones, Glenbrook Partners
In Viewpoints, payments professionals share their perspectives on the industry. Paybefore presents many points of view to o er readers new insights and information. The opinions expressed in Viewpoints are not necessarily those of Paybefore.
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The march toward semicon- ductor miniaturization, which enables sophisticated software intelligence to be embedded in very small devices.
The ongoing proliferation of telecommunications technolo- gies, which can be used to connect these devices to one another and to the cloud.
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