Remember standing in long queues as a kid to buy tickets to your favourite ride at the amusement park?
Now, some leading amusement parks give you digital bands that you can wave to make purchases at the park. The amount is deducted from the linked bank account of the customer, giving him an uninterrupted experience while having a good time with his loved ones.
Not just this, now your refrigerator can send alerts to your grocer for replenishing your favourite cola. You can even set the temperature of your air conditioner before you reach home. You can also make an online credit card payment in the blink of an eye now.
What’s more, your dishwasher and washing machine can order detergent or laundry soap when it runs short, and smart mirrors at clothing stores let you order and pay for clothes from the dressing room itself.
Interactive car dashboards are not out of a sci-fi movie and are a real thing now.
All these previously unimaginable things have become a reality, thanks to the Internet of Things (IoT).
The Internet connects more than 20 billion devices across the world and by the end of this decade, this figure is expected to reach 125 billion devices, with each customer having around 15 connected devices by then.
A large number of these devices can order products and make payments on the device owners’ behalf. Here’s how the IoT is affecting the acceptance of credit cards.
Understanding the Internet of Things
The Internet of Things is a collection of devices connected through the internet. These devices are connected to central devices and may be interconnected for the exchange of information. Smartphones, tablets, smartwatches, home assistant devices, home automation devices like thermostats and lights, and appliances like televisions, refrigerators, and ovens are all IoT devices.
IoT devices are not restricted to home use only and include various devices used in healthcare, manufacturing, agriculture, etc.
The primary function of these devices is to bring automation to processes.
Credit cards and the Internet of Things
IoT is revolutionising how customers make payments through credit cards. Virtual credit cards are the future of credit cards and are set to completely do away with physical plastic cards.
The multi-dimensional applications of the Internet of Things offer solutions that make credit card payments more secure and mobile.
The Internet of Things enables credit card companies to collect data in detail and analyse it well to help them take action at the right time.
It would benefit the customer, merchants, and card issuers alike.
Benefits of IoT for credit card customers
Along with the promising future IoT holds for credit cards, it also facilitates payments for credit card users currently. Cardholders can make instant online payments for their purchases through the mobile apps offered by card issuers.
The transactions made towards online credit card payments are secure and instant. The internet allows cardholders to make payments on their credit card bills using various digital payment options like mobile banking, net banking, NEFT/IMPS transfers, auto-debit, and VISA cards.
Credit card payments using IoT are rapidly decreasing the time between ordering a product and paying for it.
How IoT is affecting credit card payments
- Encouraging spending through instant payments: Features like automatic bill payment make IoT-enabled credit card payments instantly. Various subscription services like OTT recharge the customer’s account without interruption, and the payment is automatically deducted from his credit card. Such simplified payment options have increased spending from customers.
- Inventory management: Refilling work-related inventory like A4 sheets and printer inks is now a cakewalk. Business owners can efficiently manage the inventory without keeping a daily track of things. The payment for the same is through IoT-based credit cards, and it lets business owners keep their focus on other crucial tasks.
- Payment authentication: IoT-enabled biometric authentication has revolutionised credit card payments through concepts like wearable tech that are secured and instant.
Security of IoT payments for credit cards
Data breaches are frequent currently and need the in-depth attention of the developers. Such data breaches compromise the data and security of the customer and put his hard-earned money at stake.
Robust software and applications that authenticate and authorise payments are taking care of such security concerns and eliminating fraud. Tokenization and biometrics protect credit cardholders from unauthorised access to their private information and fraudulent credit card charges.
The tamper-proof blockchain technology in internet-based credit card payments has also reduced the leakage of personal information.
The final word
The Internet of Things has opened the gates for innumerable possibilities in the world of digital payments, and credit card issuers are actively using the technology in their processes for customers. IoT applications make payments faster, secure, smooth, and convenient. Card issuers can take real-time actions and prevent frauds and lapses in payments with IoT technology.