Digital Themes

Machine to machine payments

What are machine-to-machine payments?

Machine-to-machine (M2M) payments are automated, real-time payments made between connected devices (i.e., digital wallets, autonomous vehicles, etc.) where minimal or no human intervention is needed.

As part of the advancements using artificial intelligence (AI) and the internet of things (IoT), machines now include payments technology. Machines becoming active participants in the payment cycle is an integral piece of the Fourth Industrial Revolution.

The new industrial revolution is changing the way we operate as a society and uses converging technologies to bring about change. Machine-to-machine payments use 5G mobile networks to automatically complete transactions and work with blockchain technology using smart contracts to secure payments.

Examples of machine-to-machine payments include:

  • A connected vehicle paying for gas
  • A connected vehicle paying for parking
  • A smart home and grid trading power and energy
  • An industrial machine paying a 3D printer to print replacement parts

Machine-to-machine payments are changing the payments industry landscape, with device-agnostic solutions bringing the once isolated systems together to communicate and make autonomous choices.

How can machine-to-machine payments benefit businesses? Businesses can use machine-to-machine payments to develop new business models and create additional revenue

The benefits of using machine-to-machine payments include:

  • Automatic: Never forget to replenish an item again; machine-to-machine payments automatically purchase the items a consumer needs before they need them
  • Contactless: Payments get completed with no human contact or interaction
  • Cashless and cardless: No need to worry about remembering cash, a debit, or credit card to make a purchase
  • Autonomous purchases based on preferences: Due to the connected nature and knowledge that these machines hold, they can make purchases based on customer preference without any additional actions needed

 

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