Internet of Things Applications

According to the Federal Reserve, 39 percent of people have used their smartphones to make a payment. This number will surely continue to rise as people become more comfortable making payments with their devices.



Eventually, people will become comfortable with their devices making payments on their own. Cisco anticipates more than 50 billion devices connected to the internet by 2020. Many of these devices are becoming payments enabled, and not all of those payments will be initiated by human action. When the Internet of Things (IoT) turns into the Internet of Payments, new levels of oversight and monitoring will be needed.

Devices Decide on Purchases

One common scenario for devices that make purchases and payments is an internet-connected refrigerator that allows consumers to shop for groceries from home. In other scenarios, the devices make the ordering decisions on their own. Amazon’s Dash Replenishment Service lets devices order directly from Amazon when their supplies are running low. Printers can reorder ink and toner, and soap dispensers can stock up when they’re about to run out of sanitizer.

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Issues Delaying Adoption of the Internet of Payments

While the vision may be appealing to some, technical and social factors need to be addressed before there will be wide-spread adoption of the Internet of Payments.

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Monitoring and Managing Device-Initiated Payments

For payment departments, the spread of IoT devices will create many more potential sources of payments that need to be reviewed and monitored. Typically, IoT devices are connected without oversight from the IT department, so the standard network security measures the company takes to protect other connected computer equipment may not be in place.

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That question is mostly theoretical for now, but as the IoT and IoP evolve over the next few years, companies will need to create ways to oversee the activity of these semi-autonomous devices.

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