The established businesses and the new players in the market are increasingly drawn towards the offerings of industrial internet of things (IIoT) and are trying to understand the technology underneath. But they are missing the trick when it comes to payment solutions. Businesses are facing challenges when they are designing and implementing their own IoT payment solutions.
Overcome the Risk Factors
Many industries like manufacturing have the highest growth potential for IoT payments, but these sectors continue to rely on outdated and inefficient ways to manage their finances and therefore are ripe for an overhaul. However, automating payment procedure can increase efficiency by freeing up the resources. For instance, smart factories can tell the system not just to order more of the components but to pay automatically. Invoicing, call-off delivery and future batch ordering can be processed with minimal human intervention and greater accuracy.
There’s also improved operational visibility to monitor the workflow. Digital payment issuance and acceptance are simplified, and data concerning past purchases and incoming transactions is gathered and used in real-time thereby improving the payment facilities and reducing the cost of operations. But how can the issue of late payments be resolved? As one moves from traditional invoicing to digital methodologies, the process ensures that transactions processes quickly and in real-time thereby enhancing the buyer-supplier relationship.
IoT payments can help in boosting the business by adding significant strategic and operational value to it. As enterprises realize the benefits of an IoT structure, they are rushing to integrate it into their industrial IoT payment systems.
It is advisable for merchants to comply with the continuously evolving industry regulations such as Payment Card Industry Data Security Standard (PCI-DSS). Until and unless the businesses are sure regarding the security of their payment systems, they risk data breaches and fraud which can hamper the customer-brand relationship. Compliance as per the norms of these ever-changing regulations may be complex and time-consuming but is beneficial for the businesses.
Interoperable IoT payments with baked-in security enable merchants to strengthen their client offerings in two ways. Firstly, by combining end-to-end encryption with tokenization, replacing sensitive data with meaningless information thereby reassuring buyers that even if the payment information is intercepted, it is indecipherable. Secondly, by placing the burden of payment interoperability on an independent platform provider, companies can scale quickly. It infers that suppliers can work with more buyers, regardless of these clients’ payments infrastructures, and communicating with a larger bunch of audience rather than focusing on a small fraction.
In this better-connected world, financial processes can be simplified, and buyers can look for innovative ways of paying their suppliers. But for B2B merchants to ensure that they are accepting IoT payments quickly, cost-effectively and securely is a tricky path to navigate. Third-party payment platforms can bridge the gap amid the buyers and suppliers, reducing costs, improving efficiency and enhancing corporate relationships.