The potential to accept payments via connected devices other than laptops, phones and tablets has made the Internet of Things (IoT) the next frontier of e-commerce (and, subsequently, CNP fraud) growth. And, while potential is just about all that exists in the IoT payments space at the moment, the base of connected devices is growing quickly, according to new data, driven by advances in the automotive industry and by demand in China. Berg Insight said a recent study shows shipments of cellular IoT devices will reach more than 530 million units worldwide in the next five years. The IoT market research firm based in Sweden found that shipments of connected devices will grow nearly 23 percent annually over that time.
Retail remains a ripe market for cellular IoT devices, the company said. The technology will enable POS terminals, ATMs, digital signs and ticketing machines to be used at locations where fixed line connectivity has been, until now, impractical or unavailable. But, the verticals that will make the biggest use of IoT will be vending and parking. As increasing numbers of these devices become connected, the ability to integrate card-not-present payments will keep pace.
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