Transaction Trends

By O.B. Rawls IV, CEO and President, iPayment, Inc.

IoT. The Internet of Things. Simply stated, it’s about connectivity, being online and/or connected via technology. We started hearing about IoT several years ago, but we’re really beginning to understand how IoT impacts our lives, personally and professionally, today.

There’s no debating that we live in a connected world and it’s becoming more and more connected. As consumers we see and feel it. Our phones and smart devices are connected. We’re using products like Amazon Echo, Nest, Google Home, Apple Watch and many others, all of which are connected. And, the list of connected products continues to grow from cameras to doorbells to light bulbs to espresso machines to sprinkler systems to kids toys and even the cars we drive. Gartner, the leading research and analyst firm, says that there will be 8.4 billion connected ‘things/devices’ in use worldwide this year – up 31 percent from 2016 (6.38 billion). And, there will be over 20 billion connected devices by 2020. Wow!

Whether its Amazon Go, Pebble Time, or something else connected devices are also changing the buying – and the payment – experience. Like Uber, many of these devices create a frictionless check-out experience, making it easier than ever to buy from anywhere at any time. And, whether we like it or not, if we’re using connected devices, they’re also collecting a lot of data about us; from the temperatures we like at home to the time we brew our favorite ‘cup of joe’ to what items we’re buying from where and when.

While still new, consumers are starting to develop expectations around their connected devices and the new, enhanced shopping experience they present. Consumers are driving awareness, and some would argue change, even for small and medium-sized businesses (SMBs). And, we know that SMBs don’t have the time or resources to tackle the challenges, and reap the opportunities, that connected devices and this enhanced shopping experience may present.

As acquirers, agents, developers and value added resellers, it’s our responsibility to educate our SMB customers and help them unpack the opportunities that exist in this ever-changing space. And, of course, we must keep it simple, easy and fast. Not an easy achievement considering the topic at hand. While it’s just the beginning, and I’m sure we’ll be talking about this for years to come, I think there are two pressing issues, and opportunities, that we can, and should help our SMB customers address today.

Leveraging Data

Connected devices are changing the way we look at data in and around payments. Today, it’s not just about businesses having multi- or omni-channel shopping experiences, it’s about providing access to the data behind the experience and delivering tools that help SMBs easily analyze and leverage that data to follow the customer journey to continuously improve their customer engagement experience and, hopefully, drive incremental sales. It sounds like a monumental lift, but we have the beginning stages of this at our fingertips today; shopping data, payment preferences, digital engagement campaigns, and more. Now we just have to package this and deliver it to our SMB customers in a way that they understand and use it; in a business management or point-of-sale (POS) solution. All in one with scalability for the future.

Protecting Data

With all of this data being collected, security is a more pressing issue for SMBs than ever before. I’ve read statistics that state that 20-25 percent of SMBs are not PCI Compliant. Personally, I think it may even be a bit higher. And, as we collect more, there’s more at risk. Education is key, along with simplified self-assessment tools and incentives (beyond the fears and fines) for SMB customers to get on board. Even basic reminders and education around password protection and Wi-Fi best practices will benefit the SMB customer, and enhance your/our value as their service provider. On the software side, sourcing and reselling solutions that are semi-integrated also reduces the security risk not only for the developer or ISV but also for the SMB customer.

I’ve been in the financial services and payments space for nearly 30 years and personally, I cannot remember a time that was more exciting that what we’re experiencing today. Technology is driving a massive evolution for us as consumers and as payments professionals. While capitalizing on change can always be a challenge, the opportunities that lie ahead are certainly worth the investment in evolving your business and changing the dichotomy of your relationships with partners, customers and even team members. Let’s have fun and stay connected.

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