Visa and IBM are bringing the world secure payment experiences through the IoT

By | 4 minute read | February 16, 2017

IBM Munich HQ

Portable wallets: your car can become a contactless credit card

In a first of a kind collaboration, Visa and IBM are teaming up to bring secure payment experiences through the IoT. Using a combination of Visa’s global payments capabilities and IBM’s proven cognitive capabilities with Watson IoT Platform, businesses can now quickly introduce secure payment experiences throughout the Internet of Things (IoT) using a combination of Visa’s global payments capabilities and IBM’s proven cognitive capabilities with Watson IoT Platform.

Taking retail to new heights by moving the point of sale to where the consumer wants it

Combining IBM’s industry leading IoT technologies with Visa payment services signifies the next defining moment in commerce by freeing transactions to occur not just on your preferred device, but any connected object where it can bring new levels of simplicity and convenience to everyone.

“The Internet of Things is not only driving a more connected world, it’s changing the way we live, shop and pay by moving the point of sale to wherever the consumer wants it.”
Jim McCarthy, Executive Vice President, Innovation and Strategic Partnerships, Visa Inc.

Infusing secure, easy to use digital payment capabilities across entire product lines

IBM and Visa share a vision of a commerce-based IoT world where any device, from a watch, to a ring, an appliance or a car, can be used by the consumer to make a purchase. Under this collaboration, companies will gain instant access to Visa Token Service via IBM’s Watson IoT Platform and can immediately infuse secure, easy to use digital payment capabilities across entire product lines. As a result, IBM and Visa are enabling commerce to take place on virtually any kind of connected device – anytime, anywhere.

A connected car that makes appointments, orders parts and petrol

Experts estimate there will be 380 million connected cars by 2021. As the car ecosystem connects to the Watson IoT Platform, a driver would be alerted when a warranty or certification is about to expire or if specific car parts, such as a fan belt need replacing. With this information, the driver can order parts with the push of a button or schedule a service appointment at their preferred local garage. Taking it a step further, the driver could even pay for gas through a direct interaction between the car and the gas pump.

Never miss a run: the fitness device

Through this collaboration, an avid runner with a wireless running chip could be alerted when it’s time to replace their running shoes after which a recommendation is presented to order the newest model from their preferred retailer directly through the device. Additional recommendations could also be offered, including the type of energy drink based on the amount of exercise or what clothing they should wear taking into account their local weather forecast. The device simply will request approval to order the desired products.

Visa is building more personalized commerce experiences

Through this collaboration, all IBM’s Watson IoT Platform customers will have access to the Visa services via Bluemix, a cloud platform as a service developed by IBM. Now, rather than approaching businesses on a one-by-one basis, IBM and Visa provide all customers with instant access to these capabilities so they can immediately begin to build more personalized commerce experiences that take into account each consumer’s behaviors and proactively make recommendations based on their unique needs.

“We want the delivery of secure payments to be easy and ‘virtually anywhere’ so that IoT device manufacturers can focus on what they do best: making a great, connected devices. With the power of Watson’s cognitive technologies and IBM leadership in both IoT and security, we know they are the ideal partner when it comes to helping us quickly bring these capabilities to consumers everywhere.”
Jim McCarthy, Executive Vice President, Innovation and Strategic Partnerships, Visa Inc.

Seamless and secure global acceptance

In addition to bringing personalized payment services to the point of sale, the companies will also ensure that all consumer information remains secure by leveraging Visa’s Token Service. The service provides an additional layer of security by replacing sensitive account information found on payment cards, such as the 16-digit account number, expiration date and security code, with a unique digital identifier that can be used to process payments without exposing actual account details. The Visa Token Service is part of Visa Ready is a partnership program committed to ensuring that the next generation of third-party payment solutions meets Visa’s security standards and specifications. The Visa Ready seal of approval helps ensure tomorrow’s payment innovations will have seamless and secure global acceptance.

“IoT is literally changing the world around us, whether it’s allowing businesses to achieve unimaginable levels of efficiency or enabling a washing machine to ensure we never run out of detergent. And behind this transformation are companies like Visa and technologies like Watson.”
Harriet Green, General Manager, IBM Watson IoT

Insight from billions of connected devices

IBM’s Watson IoT Platform allows businesses to draw actionable insight from billions of connected devices, sensors and systems around the world. Today IBM is working with more than 6,000 clients, around the globe and across industries, to help them truly realize the benefits of IoT.

Get more information on the Visa Ready partner program, or learn more about the Visa Token Service.

Or join our Store Pilot Program, and learn more about IBM Watson IoT.