Evolving Payments with IoT

  • May 22, 2018

    Evolving Payments with IoT

    The internet of things not only changes the way we live our daily lives, it also changes the way we interact with brands. Marketers are now integrating IoT into their strategies as a way to increase customer engagement but to also improve the customer experience.

    In a previous article, we discuss incorporating chatbots as part of a company’s omni channel. Companies enjoy higher profits and increased customer loyalty when their end users can access products and services through the most convenient methods for them. In recent years, omni channel strategies centered largely around the smartphone. However, companies may need to think more broadly beyond the trajectory of the smartphone.

    POS Beyond Smartphones

    A recent TechCrunch article cites over 47 million US adults now have access smart speakers. Not all of them utilize their speakers to shop, but it puts in perspective just how ubiquitous IoT devices, in addition to smartphones, have become. Creating revenue channels through IoT extends beyond marketing but to actually closing the sale and receiving payment.  Retailers will now need to explore enabling point of sale (POS) systems for other categories of IoT devices.

    Fintech Meets IoT

    Fintech, IoT and chatbots (three topics we frequently discuss on the Attunix blog) coalesce when incorporating POS systems in more IoT devices. A recent Finextra post emphasizes that we are well past the age of simple transactions on mobile sites. Consumers want companies to bring their business to them on their preferred methods and devices.

    The article highlights the emerging POS technology of conversational commerce in which consumers can pay using smart speakers, chatbots and virtual assistants.  We have already seen some implementation of pairing chatbots and payments with Amazon’s integration of Echo devices with owner Amazon accounts.

    Integrate Security with Development

    Making payments friction less by typing or voicing a command also raises security concerns. Companies that develop POS for conversation also need to enable heightened security measures as well as increase customer service access for claims and returns.

    Companies can partner with programs like Visa Secure to make sure their IoT POS systems are both secure, seamless and supported. Instead of simply promoting convenience, Fintech innovators and IoT manufacturers should also exercise security by design.