IBM and Visa have revealed a partnership to use the Watson IoT platform to expand digital payments to connected cars, wearables, and other devices.
The collaboration brings together IBM’s Watson IoT platform and cognitive capabilities, withVisa’s global payments services that are used by more than 3 billion consumers globally. IBM’s Watson IoT Platform allows businesses to connect to billions of connected devices, sensors and systems around the world and then draw actionable insights.
Today the platform is used by more than 6,000 IBM clients that are helping customers connect to millions of devices.
IBM said that consumers’ devices, cars, or even running shoes, could be turned into a POS payment system. In one scenario, a driver will be alerted when the car’s warranty or certification is near its expiration or if specific car parts need some replacements. The driver might then click a button to order parts, or schedule a service appointment.
As for running shoes, IBM noted that a customer with a wireless running chip could be able to receive a signal when it’s time to replace the footwear. The digital alert will give the customer with suggestions of other shoes, at the best price, from a selected retailer.
Harriet Green, general manager, IBM Watson IoT said,
“IoT is literally changing the world around us, whether it’s allowing businesses to achieve unimaginable levels of efficiency or enabling a washing machine to ensure we never run out of detergent. And behind this transformation are companies like Visa and technologies like IBM’s Watson IoT platform,”
“This combination of IBM’s industry leading IoT technologies with Visa payment services, signifies the next defining moment in commerce by allowing payments on any connected object, with new levels of simplicity and convenience for everyone.”
How it Works:
In the future with this collaboration, all of IBM’s Watson IoT Platform customers will have access to Visa payment services via the IBM Cloud. As a result, rather than approaching businesses on a one-by-one basis, IBM and Visa will provide all customers with access to these capabilities, so they can begin to build personalized commerce experiences and proactively make recommendations based on consumers’ unique needs.
As part of this collaboration, the companies will also ensure that all consumer information remains secure by leveraging Visa’s Token Service, which replaces sensitive account information found on payment cards, such as the 16-digit account number, expiration date and security code, with a unique digital identifier that can be used to process payments without exposing actual account details.
The Visa Token Service is accessible through a network of token service providers (TSPs) as part of the Visa Ready partnership program, which certifies the next generation of third-party payment solutions to ensure they meet Visa’s security standards and specifications, and will have seamless and secure global acceptance.
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