Global technology and innovation company IBM and global payments technology company Visa Inc. have recently joined hands on a common mission. Together, the companies want every Internet-connected device on the planet to become its own point of sale (PoS). The giants aim to achieve the same through Visa’s token technology and IBM’s Watson for IoT platform.
By completely transforming the way we live, work and play, Internet of Things (IoT) has made life easier for all of us. Today, IoT has been able to become a reality due to the convergence of several technologies. When IoT data is combined with cognitive computing, businesses are able to extract valuable insights to improve virtually every aspect of their operations and enable innovative, new business models.
According to McKinsey & Company’s June 2015 report “Unlocking the potential of the Internet of Things,” by 2025, data from connected devices will yield insights driving potential economic value of as much as USD 11 trillion.
By connecting consumers, businesses, banks and governments in more than 200 countries and territories worldwide, Visa is currently powering about a whopping 60 percent of the world’s payments. On the other hand, IBM’s Watson IoT Platform has been designed to simplify cognitive IoT development so one can harness the full potential of the Internet of Things.
One could now put their car to use to pay for gas without needing any cash, cards or phones. Or, even our old shoes could purchase new ones, as and when they sense they’re no longer in a condition to be used.
According to Harriet Green, general manager, IBM Watson IoT, Internet of Things can be credited for completing changing the world around us, whether it’s enabling a washing machine to ensure we never run out of the cleaning agent or allowing businesses to achieve unimaginable levels of efficiency. He also added, that this change has been made possible by companies Visa and cutting edge technologies like IBM’s Watson IoT platform.
Commenting on IBM’s partnership with Visa, Green said,” 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.”
According to experts, it could work out something like this. Visa would put its token sharing architecture to use and tie a device to IBM’s cloud infrastructure. While the Token Service then gives out information from the payment card a unique digital ID, IBM’s IoT cloud, on the other hand, would take the responsibility of handling the tokens and then connecting them to different devices.
Voicing his company’s sentiments on the deal, Jim McCarthy, executive vice president, innovation and strategic partnerships, Visa said ,” With the power of Watson’s cognitive technologies and IBM’s leadership in IoT and security, they are the ideal partner to help us deliver secure payments to ‘virtually anywhere’ and on the enormous scale of the IoT.”
He also added, “The Internet of Things is not only driving a more connected world, it’s changing the way we live, shop and pay, by moving data and the point-of-sale to wherever the consumer wants it to be.”
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