29/06/2017
5 ways technology will change commerce
Someday soon, you’ll be able to pull up to a drive-through restaurant having already selected and paid for your order using a digital terminal in your Internet-enabled car. “We’re at an inflection point,” said Jim McCarthy, EVP of innovation and strategic partnerships at Visa.
McCarthy went on to explain that you are entering the age where every object has the potential to be connected and payment-enabled.
The digital future is all about heightening convenience for consumers, banks and merchants alike—without sacrificing security. Tokenization (replacing sensitive account details with a temporary digital token) and the Internet of Things (embedding connectivity into everyday objects) lead the way when it comes to payment technology, noted McCarthy.
You are looking at 21 billion Internet-connected devices by 2020—or 7 billion mobile phones—as opportunities for payment and acceptance points. This is exponential compared to where we are today.
How will these innovations impact your everyday lives?
Here’s a taste for what’s to come, making transactions more seamless than ever before.
1. Your fridge will order another gallon of milk before you realize it’s running low
Using sensor technology, your connected fridge will be able to detect when you’re running low on an item and trigger an order for you. This will only happen after the consumer programs rules and opts in.
A “smart fridge” could connect to a grocery-delivery service and be at your door before you know it. “These things aren’t that far away.
2. Your rideshare will initiate deals and offers near your destination
Visa’s use of data analytics allows you to help your merchants connect the dots on consumers’ purchase behaviors and therefore better cater to their unique preferences.
For example, mobile parking solution provider IPS recently launched its Park Smarter app, which uses the Visa Commerce Network to offer consumers deals from nearby businesses based on their past preferences. You might even get a discount to a restaurant near your parking destination.
3. You’ll continue to be better protected from fraud
Thanks to tokenization, digital purchases made with a credit card benefit from an extra layer of security. Visa Token Service replaces sensitive payment account information found on plastic cards with a digital account number or “token.” Because tokens do not carry a consumer’s payment account details, such as the 16-digit account number, they can be safely stored by online merchants or on mobile devices to facilitate e-commerce and mobile-based payments.
More and more, tokens are bound to specific devices, like your phone, which means even more peace of mind. Misuse can be detected and corrected swiftly, without the need for consumer intervention.
4. Your iris and fingerprint will become more mainstream to authenticate your identity
The days of having to remember a password or PIN are numbered.
Biometrics, like using a fingerprint and iris scan, can help you more conveniently transact at ATMs, complete mobile purchases.
Soon, pre-order cash at banks and credit unions for pick up. You can walk up to an ATM, and if you have registered your iris, you can look at it and the money [you are withdrawing] comes out.
Using unique traits you possess, biometrics add an additional layer of security and authentication option. If your sensor can’t read your fingerprint because it’s wet, you can simply use an alternative biometric, like your voice.
5. You can fine-tune your account settings from wherever you are
Control over account spending lies in the lap of the consumer and is becoming much more nuanced.
Using mobile apps or an online dashboard enabled with Visa’s Consumer Transaction Controls, cardholders can cap how much they spend at a certain merchant or impose channel restrictions (e.g. no e commerce) for kids.
You can actually treat card like a thermostat.
Are You Ready?
Suresh Shah, Pathfinders Enterprise
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