As the Internet of Things (IoT) continues to grow and drive a more connected world, it is changing the way we live, shop and pay by moving data and the point-of-sale to wherever the consumer wants it to be.
Visa’s new global collaboration with IBM is designed to bring the point-of-sale everywhere by allowing businesses to introduce secure payment experiences quickly to any device connected to the IoT. This partnership is rooted in a shared vision and belief that we can securely embed payments and commerce into any device—from a watch to a ring to an appliance or a car.
Experts estimate there will be 380 million connected cars by 2021*. At Visa, we’ve been working with a number of car manufacturers (and other companies from across the car ecosystem) to build and test prototypes for car-based payments since 2014. By connecting the car ecosystem to the Watson IoT Platform and enabling the car with secure payment functionality, imagining the many possibilities becomes easy.
Drivers could be alerted when their smog certification is about to expire or if a specific car part needs replacing, responding by either scheduling a service appointment or ordering the part that has the combined lowest cost and fastest shipping time. The range of other options is virtually limitless, extending to insurance offerings, paying for gas without a physical card or zipping through the drive-thru that much faster because the payment part of the transaction no longer exists.
Infusing Security into IoT
What is most fundamental in bringing a commerce-based IoT to life is ensuring its security. For this vision to flourish consumers must feel secure and that is where Visa’s work with IBM will first begin. Of the 6,000 clients already utilizing the Watson IoT Platform today, they will now be able to more easily infuse secure payments across their entire product lines using the Visa Token Service, a new security technology that replaces sensitive payment account information found on payment cards with a unique digital identifier.
For IBM’s Watson IoT clients, we will make the Visa Token Service accessible through a network of token service providers (TSPs) as part of our Visa Ready partnership program. We created the Visa Ready program to help quickly certify emerging, third-party payment solutions to ensure they meet Visa’s security standards and specifications, and have seamless and secure global acceptance. Being able to be confident that your Visa account will work the same way on an app from your phone or at a shop in Dubai is another hallmark of Visa that is essential for us to maintain.
As this tidal wave of new payment accounts approaches — Visa currently has three billion accountholders and conservative estimates expect 20 billion devices in just three more years** —removing sensitive account information such as the 16-digit account number from the system was an essential part of preparing for this very digital future. We consider the tokenization of digital payments the newest component in an always-evolving and very comprehensive security strategy to identify and prevent fraud.
At Visa, we fundamentally believe you can be everywhere you want to be – and now pay with everything you want to use. We have spent the last several years investing in and preparing for this future and that payments will be at the core of not only devices, but also experiences. Working with Watson IoT is a major step in getting us to a place where we can deliver secure payments to “virtually anywhere” and transform that long retail line to a line of one: you.
In recent years, the field of technology support has evolved rapidly to catch up with disruptive services technologies. In the meantime, technology innovation has led to fundamental changes in how support services are delivered. We highlight the following five technology trends expected to drive the evolution of the technology support services industry, and to shape […]
The world took a big leap forward toward quantum computing readiness, today. A dozen international organizations representing Fortune 500 companies, academia, and the government joined the newly minted IBM Q Network. Together, we are committed to exploring scientific and commercial applications of quantum computing, leveraging IBM’s recently-announced 20-qubit commercial system – and, soon, our next-generation […]
Communities around the globe face an overwhelming number of intractable problems –from income inequality to climate change, to job creation and the spread of deadly and incurable diseases. No one sector – whether government, business, academia or civil society – can tackle today’s challenges all by itself. All sectors must work together, and all must […]