A vast, evolving ecosystem of connected devices, known as the Internet of Things, is expanding the universe of interoperable devices and making payments possible in everything from connected cars and wearables to smart homes and cities.
We’ve created the Visa Ready program for IoT to ensure that all of these extraordinary new payment solutions meet Visa’s security standards and specifications, and to help facilitate faster global acceptance of IoT payment innovation.
IoT payments solve consumer pain points
Consider your customer’s average trip to the gas station: They need to locate a station, get out of their car, dip their card, and pick a fuel grade.
With a connected car, we can alleviate those pain points by connecting your customer’s car to a digital payment credential (called a “token”), and then have the car find the nearest gas station, select the fuel grade, and turn the pump on – all before your customer gets out of the car –– so that the only thing left to do is pump.
It’s these types of frictionless experiences that make IoT payment solutions so compelling from a consumer perspective –– the world’s best technology and applications are meeting them with enhanced convenience and greater security.
Tokenization is the essential component of all IoT payments
To foster the widespread adoption of these exciting new payment solutions, Visa recently created the Token Service Provider program. Token Service Providers (TSPs) are participating third-party businesses that have gone through the Visa Ready certification process and are capable of securely connecting token requestors (such as merchants holding the card credentials) to our token platform –– Visa Token Service. TSPs also perform token-related tasks on behalf of issuers.
Biometrics will play a vital role as payment solutions continue to evolve. The Visa Ready program certifies new biometric solutions and provides innovators with tools and resources to accelerate their adoption.
IoT payments rely on biometrics in a variety of ways. For instance, a connected watch could be bound to both a unique token and your customer’s voice, using specific data to authorize payments that only their body can provide. Without that data, all payment transactions are halted. In the near future, consumers will be able to swipe a hand and connect to a cloud-based token without the need for a watch or any other device.
The Visa Ready program supports the future of IoT payments
Forecasts predict that 50 billion devices will be connected to the Internet of Things by 2020. As the IoT payments ecosystem continues to evolve, the Visa Ready program is committed to enabling new innovations to be more secure and accessible.
And Visa is committed to engaging in open dialogue about network opportunities and providing value to its partner community banks and credit unions. And it always will.
To learn more about the Visa Ready program, visit https://visaready.visa.com/identity/auth/register.