Dubai: Over the last few years, the Internet of Things (IoT) has become a key theme of innovation across a number of sectors. Over 6.4 billion physical objects worldwide are expected to be connected via IoT this year, according to Gartner.
It is estimated that 50 billion devices will be connected to the internet by 2020. Many of these will be portables such as phones, but also home appliances, office equipment, wearable technologies, or even transport systems such as cars, bikes and public transport.
“The Internet of Things is expected to have an enormous impact on every aspect of our lives, particularly in the payments sector which will see many IoT based innovations,” Ramez Shehadi, Executive Vice President and Managing Director, Booz Allen Hamilton Middle East & North Africa (Mena).
Interconnected intelligent devices have already become ubiquitous and fit seamlessly into our day-to-day activities. Through IoT, any connected object can become a payment device, be it your car (paying tolls or parking meters seamlessly), television (ordering items from ads or shopping commercials), wristwatch (as a near frequency payment method), thermostats (paying bills based on projected monthly usage), or airline baggage tags (that authorise payments for exceeded luggage allowances) to name a few.
Order new supplies
In the not too distant future, household appliances that use consumable supplies, such as washing machines, vacuum cleaners and refrigerators — through IoT sensing and payment capability — will be able to detect when they need to order new supplies, and then place the order, and execute the payment, with an alert message to homeowners so they can approve or cancel the order.
“Mena region will experience double digit growth in IoT investments in the coming years. Having said that, the adoption in Mena of digital wallets and contactless payment systems is not moving as fast as in other regions such as North America or Europe, and it will take some time as it has to meet the stringent security requirements being implemented for back end and supporting technologies and systems,” said Shehadi.
Factbox: Innovation-priority sector
As a key economic pillar, the financial sector is usually at the heart of national innovation strategies; it is considered an innovation-priority sector, as well as an innovation-enabling sector. Innovation within the sector can have many benefits from cybersecurity and predictive intelligence capabilities to protect the economy from acts of financial fraud, to innovative payments mechanisms such as e-payment, m-payment and blockchains to spur and drive economic activity.
Blockchain technology, for example, can help GCC governments boost security in the financial system by securing and facilitating transactions in the fast-growing Islamic capital market, and improving trusted and broad-based access for investors; assisting in applying for loans from Islamic banks by issuing a smart contract that is mined, validated, and replicated through the network; managing identity theft; and enabling smart grant financing.
