A recent survey of 2,600 American adults revealed that consumers own multiple IoT connected devices. On average, and besides the usual portfolio of phones, computers and laptops, a consumer owns 4.4 connected devices. Overall these devices include:
- Game consoles (47 percent)
- Activity trackers (41 percent)
- Smartwatches (15 percent)
- Voice-controlled assistants (14 percent)
- Connected thermostats (9 percent)
- Virtual reality headsets (7 percent).
In addition, the survey found that “more than 80 percent of those surveyed find today’s payments and commerce-related experiences across all channels frustrating, unproductive and inefficient — even boring.”
One payment provider, Visa, is working on changing these frustrating payment experiences. It’s focusing its IoT efforts on giving device manufacturers the ability to embed payments into the experiences that their devices power for the consumer.
As noted in the article referencing the survey, a key element, in addition to privacy and data security, is the underlying infrastructure. In the case of Visa, this infrastructure includes its VTS (Visa Token Service), VDEP (Visa’s Digital Enablement Program) and Visa’s recently launched Visa Ready Tokenization Program. Tokens enable commerce to occur when the card and terminal don’t touch or even exist. They make the transaction secure and trusted by the consumer, issuer and the merchant. According to Visa, “Visa Ready makes it possible for TSPs [token service providers] to gain access to tokens simply and easily,”
One such example of using tokenization to serve consumers is with Garmin. Garmin recently announced its new Vívoactive 3 fitness watch. This connected watch provides a contactless payment option called Garmin Pay. It’s equipped with an NFC chip and has an embedded secure element that lets wearers pay by tapping the watch against compatible point-of-sale terminals. The Garmin Pay leverages the payment platform developed by FitPay, a wholly owned subsidiary of smart wallet company NXT-ID.
Garmin is actually the first Visa partner that uses a TSP (token service provider), in this case, FitPay, to come online with their payment-enabled wearable. The TSP platform, enables device manufacturers to setup commerce-enabled devices in a matter of weeks simply by leveraging the certified and vetted commerce and payments foundation that Visa and its third-party partners already have in place.
Read the entire article at Pymnts.com.