Q> What impact will the Internet of Things have on data and vice versa?
The collection and dissemination of data will be revolutionized by the Internet of Things. As everyday objects (like thermostats and billboards) in addition to smartphones and tablets begin to communicate more frequently, data will be buzzing around endlessly. This can be great news for merchants who use emerging technology to collect and analyze data and personalize offers and communications. It can also pose a threat for those who have not found a layered, agile way to secure data from end-to-end as technology and fraudsters evolve.
This month, we compiled insight from industry leaders on how to collect, protect and analyze data within the context of IoT.
Here is what the experts are saying:
- Beacon technology makes personalization a snap. Beacon technology, which operates in the background to locate and track a user’s location, can be used by merchants to offer hyper-personalized communications and offers to consumers. This is a boon for merchants, who can be opportunistic in terms of how and when they are used to target consumers as shelves and store displays become personal and interactive. These tools present unique opportunities to be more sophisticated in marketing efforts.
- Things are getting smarter. Big Data and the Internet of Things will make everyday living easier – and more efficient. As companies produce more ”smart devices” that use connected data systems to learn our preferences and automate processes accordingly, everyday objects will become more intelligent and companies will gain a wealth of global knowledge about energy use across communities. The other side of the coin is that this creates privacy issues as data becomes more personal, including information about consumers own homes. How companies respond to these privacy issues will be a fundamental to adoption and the expansion of the IoT.
- Biometrics up the marketing game. Consumers adapted to companies collecting data about them long ago. This was because the collection of data was part of a value exchange – in return for giving up this information, consumers receive better customer service, faster delivery and better offers. The difference with the Internet of Things is that its no longer people at companies collecting information, but machines. This raises numerous privacy and security issues as almost anything and everything can garner data on who you are, what you do, what you like and where you are. Only time will tell how sensitive consumers will be to this type of data collection; however some things are certain. It’s likely that regulators will get involved to create standards for this type of data collection. Security standards will evolve accordingly. Privacy – and how companies prevent compromising it – will also evolve.
- Big data facilitates personalization. The data collection possibilities of IoT are seemingly endless. When harnessed with appropriate and powerful technology, this data positions merchants and card brands alike to make major gains and non-cash transactions boom, providing rich access to data.  These payments provide a peak into consumer preferences, search histories and other data, which merchants can use to personalize each experience and touch point for each customer.
The Internet of Things will continue to evolve and the things that can potentially collect data will become greater in number. As this data proliferates, merchants will need to ensure that they remain compliant and secure but also agile enough to properly analyze the data and make it actionable. Security and privacy issues will abound and merchants will need to ensure that transaction data remains secure from end-to-end. This data will become instrumental in providing personalized, targeted offers that can boost the bottom line.
Verifi’s flexible, global payment processing platform can help you streamline and secure your payment processing. Our processor-agnostic “Super Gateway” offers the stability of a best-in-breed processing platform that is agile enough to evolve alongside tomorrow’s emerging threats. The Gateway plugs in with our fraud prevention tools to provide a frictionless, end-to-end experience. The Gateway works seamlessly with Verifi’s Intelligence® Suite, Cardholder Dispute Resolution Network™ (CDRN) and Chargeback Representment (CBR) to protect your payments across the entire transaction lifecycle. The Gateway also integrates with Decline Salvage to ensure that you don’t lose your loyal customers to unnecessary declines. The “Super Gateway” provides omni-channel, end-to-end payment protection with customizable fraud tools, Total Chargeback Management and the ability to improve authorizations by up to 20%.
One last note – Have you downloaded our updated ebook: What Every Card Not Present Merchant Should Know: Navigating Today’s Challenging Payment Ecosystem? Get it now!
Contact us to find out how to secure your payment from end-to-end while maintaining a superior customer experience. What are your thoughts? Ping us on twitter (@verifi) with #paymentstips and let us know what you think.