Connected devices: The new point-of-sale?

Visa and IBM have a vision — that any device connected to the Internet of Things can securely process payments. And this means “any device.”



Through the partnership, the companies are merging IBM’s Watson IoT platform and cognitive capabilities with Visa’s global payments services — a platform that is 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.



IBM and Visa’s vision is to embed payments and commerce processes into any device — whether it is a watch, a ring, an appliance or a car, among other gadgets. Under this collaboration, companies can infuse secure payments across their entire product lines using the Visa Token Service, a new security technology that replaces sensitive payment account information found on payment cards with a unique digital identifier, via IBM’s Watson IoT platform.



Through this collaboration, all of IBM’s Watson IoT Platform customers will have access to Visa payment services via the IBM Cloud. Rather than approaching businesses on a one-by-one basis, this configuration enables all customers to access to these capabilities so they can begin to build personalized commerce experiences; and the partners can proactively make recommendations based on consumers’ unique needs.



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.



“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,” said Harriet Green, general manager, IBM Watson IoT.



“Behind this transformation are companies like Visa and technologies like IBM’s Watson IoT platform,” said Green. “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.”