The so-called “Internet of things” refers to the forward-thinking concept of a range of connected physical objects. Today, MasterCard has shared a new program that expands on that theme with what it’s calling the “Internet of payment things.”
Translation? MasterCard payments will be possible with, for example, a cocktail ring (as in the case of Ringly), a key fob (GM) or the sleeve of a jacket (designer Adam Selman).
“As devices become more connected, we really believe that every device can be a commerce device,” said Sherri Haymond, senior vice president and group head of digital channel engagement at MasterCard. “Today it’s a reality that people can pay with their phones, but we’ve always had a vision that it would go beyond mobile. In a visual way, this makes it very real for brands and consumers to understand that commerce is everywhere.”
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Haymond said the technology has evolved so much that the chips that make this possible are smaller than the size of a thumbnail, and thus can be imbedded in apparel and accessories without interfering with the design. Some objects must be tethered to a user’s smartphones, while others can enable payments independently of the phone. Cisco estimates that the number of connected devices will reach 50 billion by 2020.
According to Haymond, MasterCard has been “building a foundation” to make this possible for the past few years, and has talked to those that power Apple Pay, Samsung Pay and Android Pay, and worked with Visa and American Express to create standards. The “Internet of payment things program” is an extension of MasterCard’s Digital Enablement Service and the Digital Enablement Express program, which allow any device to be payment-enabled and scaled to millions of MasterCard accounts. Paying with a “contactless” device works in the same way one currently pays with a smartwatch. Users control account details and functionality through a mobile app on a smartphone, and then pay with the object — say, a Ringly ring — at any tapless-enabled terminal.
MasterCard shared prototypes of possible devices from GM, Nymi (which creates a wristband) and Ringly at the Money20/20 conference in Las Vegas on Monday.
“This program eliminates the boundaries of how we pay by delivering a secure digital payment experience to virtually anything — rings, fitness and smart bands, car key fobs, apparel and whatever comes along next,” said MasterCard chief emerging payments officer Ed McLaughlin.
The first products are expected to become available in 2016, beginning in the U.S. Haymond said she expects that companies like American Express or Visa will follow suit.
“Technology is vital to the fashion industry,” said Selman, who said MasterCard’s “Internet of payment things” program features tech that is interactive and functional, yet still invisible. “From textiles, printing techniques and innovations in garments, [technology] keeps fashion changing and evolving. Usually technology’s role is behind the scenes,” she said.