The way people choose to make transactions is undergoing massive changes and hence comes the popularization of the Internet of Things (IoT) payments. Smart payments can be defined as payments that are machine-triggered and done using real-time data and do not involve any human intervention.
While analyzing the data of the last year, it was evident that globally, people are choosing smart payments more than cash payments and also that the volume of non-cash payments exceeded the volume of cash payments. Right now, financial transactions are more leveraged toward non-cash payments. Let us look into how it can make us smart, and, also, at the cons.
IoT In Smart Payments: Is It Really Smart?
- No Contact Payment
IoT in smart payments has significantly reduced physical contact in payments which was indeed a boon when it comes to easily contagious pandemics, like COVID-19. It enables the users to make payments at the POS (point-of-sale) terminal just using the device that they use to make the payment.
- Digital Wallets
Digital and tech giants like Google and Apple have introduced mobile wallets such as Google Pay, Apple Pay, and alike making it convenient for users to make payments that are safe and secure.
- Payment Through Wearables
Mobile phones are not the only devices that you can use for making smart payments. It is also done using smartwatches, and also fitness trackers.
- Appliances Linked To The Internet
The smart appliances that you use when they are connected to the internet can identify the progress of the purpose that they are used for and make required changes.
- The smart device that you are wearing can identify whether you are in an emergency and can send automatic messages to those in your emergency contact list.
- It helps to regulate energy usage by automatically turning on the air conditioner when a room is full of people or adjusting the heat when the temperature is rising.
- Advanced Checkout
This enables consumers to scan their items and make payments without making contact with anyone else. This can be done through smart kiosks and advanced checkout counters.
- Smart Health
It makes sure that the patient is getting the required care and is correctly undergoing all the follow-ups by sending necessary notifications and reminders.
- Also, Now You Can Travel Smart
All the hustles of travel are reduced by IoT in smart payments as it enables you to make smart payments for all travel requirements.
IoT In Smart Payments: Posed Challenges
- Privacy and Data Security Concerns
As one user might be using more than one smart device and his or her data is provided in all these, hackers might easily steal the confidential data.
- International Standard of Compatibility
As there is no international compatibility standard presently, it can make it difficult for devices from different manufacturers to connect and communicate.
- Device Corruption
As more than one device is connected to each other, the presence of a bug in any one of the devices might corrupt all the other ones connected.