IBM and Visa in landmark IoT point of sale deal
Written by Anthony Strzalek
IBM and Visa have announced a landmark collaboration which will see billions of automobiles, appliances and other connected devices turned into potential points of sale.
The partnership will bring the point of sale everywhere Visa is accepted, allowing businesses to introduce secure payments for any device connected to the Internet of Things (IoT).
Companies can introduce 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, via IBM’s Watson IoT platform. As a result, IBM and Visa could support payments and commerce on many of the 20 billion connected devices estimated to be in the global economy by 2020.
The collaboration brings together IBM’s Watson IoT platformwith Visa’s global payments services that are used by more than three billion consumers globally. IBM’s Watson IoT platform allows businesses to connect to billions of connected devices, sensors and systems around the world and then draw actionable insights.
Harriet Green, general manager at IBM Watson IoT, said: “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 IBM’s Watson IoT platform.
According to predictions from technology research firm Gartner, there will be 380 million connected cars by 2021. The IBM-Visa partnership could see, for example, a driver alerted when the car’s warranty or certification is about to expire or if specific car parts 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. The driver could even pay for gas through a direct interaction between the car and the gas pump.
Similarly, with a fitness device, an avid runner with a wireless running chip, could receive a digital alert when it’s time to replace her running shoes, including a recommendation of the best model, at the best price, from a preferred retailer.
Jim McCarthy, executive vice president, innovation and strategic partnerships, at Visa, added: “The Internet of Things is not only driving a more connected world, it’s changing the way we live, shop and pay, by moving data and the point-of-sale to wherever the consumer wants it to be.
“With the power of Watson’s cognitive technologies and IBM’s leadership in IoT and security, they are the ideal partner to help us deliver secure payments to ‘virtually anywhere' and on the enormous scale of the IoT.”