IoT payments solve consumer pain points.
Consider your average trip to the gas station: you need to locate a station, get out of your car, dip your card, and pick your fuel grade.
With a connected car, we can alleviate those pain points by connecting your car to a digital payment credential (called a “token”), and then have the car find the nearest gas station, select the fuel grade, and turn the pump on – all before you get out of the car – so that the only thing left for you to do is pump.
Or, in a smart city, a connected car can locate an available parking meter. After you park, the car “handshakes” with the parking meter and initiates the meter, and when you drive away from the meter you’re billed for the duration you were parked.
It’s these types of frictionless experiences that make IoT payment solutions so compelling from a consumer perspective. It’s not that consumers’ needs are changing, but rather that the world’s best technology and applications are meeting them with enhanced convenience and greater security.
Biometrics will play a vital role as payment solutions continue to evolve.
If you’re someone who makes payments with a mobile wallet, you’re already using biometrics every time you use your fingerprint to authenticate your identity. The Visa Ready program certifies new biometric solutions and provides innovators with tools and resources to accelerate their adoption.
IoT payments rely on biometrics in a variety of ways. For instance, a connected watch could be bound to both a unique token and your voice, using specific data to authorize payments that only your body can provide. Without that data, all payment transactions are halted. In the near future, you’ll be able to swipe your hand and connect to a cloud-based token without the need for a watch or any other device. In a sense, each of us will eventually be a part of the mesh of the Internet of Things by virtue of our individual physical traits.
Token Service Providers will scale tokenization – and are fundamental to IoT payments.
Tokenization is the essential component of all IoT payments, so to foster the widespread adoption of these exciting new payment solutions, we recently created the Token Service Provider program. Token Service Providers (TSPs) are participating third-party businesses that have gone through the Visa Ready certification process and are capable of securely connecting token requestors (such as merchants holding the card credentials) to our token platform – Visa Token Service. TSPs also perform token-related tasks on behalf of issuers.
Companies participating in our TSP program include:
Global: FitPay, Gemalto, Giesecke & Devrient (G + D), Infosys, Inside Secure, Rambus
Asia Pacific/India: Mahindra Comviva, PayCraft
Central Europe, Middle East & Africa: Digiseq, FOO, Pri-Num, Seglan
Latin America: HST, Prosa, VeriTran, YellowPepper
By nurturing our TSP partnerships, the Visa Ready program is accelerating the acceptance of IoT payment solutions around the world.
The Visa Ready program supports the future of IoT payments.
The only constraint in developing IoT payment solutions will be our collective imagination. Eventually, IoT payment solutions will dramatically transform our concept of what it means to “own” something. Imagine a world in which you could take an appliance out of a store without paying. Instead, you would pay for the device on a per-usage basis. The manufacturer would therefore be incentivized to deliver more value so that you use the appliance more. The same can occur for cars, televisions, or any other connected device.
As the IoT payments ecosystem continues to evolve, the Visa Ready program is committed to enabling new innovations to be more secure and accessible. Our goal is to be able to pay everywhere you want to be – with everything you want to use.
Sign up to learn more about Visa Ready and Visa Token Service