This is part 1 of a two-part series.
The payments industry is undergoing unprecedented change, thanks to innovations from fintechs and progressive financial institutions, as well as explosive growth of mobile, connected devices (see Figure 1). So far, merchant acquirers have been slow to respond. To succeed in this continually changing and complex environment, merchant acquirers need to embrace the Internet of Things (IoT) to generate new streams of revenue in the digital age.
With the growing number of digital payments channels (mobile point of sale, near-field contactless, wearables, etc.) and the surge of smart devices and applications, consumers increasingly expect a digital experience to approximate an ideal physical setting. In addition to one-click or type-and-swipe access, consumers look for fast, convenient, personalized service at every touchpoint.