The Internet of Things (IoT) and The Payments Landscape

There are two pieces of data that show exactly how IoT has, and will continue to, change the payments landscape. In 2017, there were over 20 billion devices connected to the internet. Also, in 2017, e-commerce sales reached $2.3 trillion, with expected growth of 15 percent each year. More than ever, people are shifting their purchasing habits online, and they’re making those purchases with devices you normally wouldn’t associate with online shopping (e.g., Amazon’s microwave, which comes with a button to automatically order more popcorn from the e-commerce giant). The potential of IoT payments is growing each and every day.

The Power of Phones

As more devices connect online, how consumers make purchases is shifting, as well. With smart speakers, purchasing becomes as easy as a conversation, and 60 percent of virtual assistant users state they’ve made a purchase through voice command. Still, the vast majority of online spending happens through mobile devices. Even if you’re not scrolling through an app to make a purchase, third-party solutions, commonly paired with RFID or other secured, near-field communications, can almost literally turn your phone into a wallet to be swiped at the checkout counter (i.e. Google Pay and Apple Pay).

Why IoT Matters

Because of the ubiquity of purchases made by phone, it is perhaps the most essential feature of the payments landscape as it relates to IoT. Mobile payment processing is capable of turning any phone or tablet into a point-of-sale system, widening the playing field of potential merchants looking for payments services. The more merchants, the more opportunity for payment services software to step in and make things easier on both sides of the purchase equation.

Contact Us at Paragon Payment Solutions

For all things IoT payments, including mobile software development kits (SDKs), APIs, and test accounts, check out the Paragon Payment Solutions’ developers site.

Ready to see our API or open a test account?  Looking for more information on our Partner Programs?  Are you a merchant with a question?  We are here to help!