451 Research’s very own, Jordan Mckee, recently contributed to Forbes regarding his thoughts on IoT’s rapid expansion, and correspondingly, IoP’s climb into the mainstream. He found that although IoP will drive an estimated $7.5B in US transactions alone by 2022, there are several challenges that need to be addressed before sustainable growth can occur, namely, building customer trust, integration and enablement with companies that are generally unacquainted with transactions & the ensurement of security and authentication of financial data.
As reflected in Figure 1, the integration of payments in IoT gives opportunity for data collection and increased personalization, thus leading to heightened customer engagement and impulse buying. Of the challenges that McKee addresses, there lies a central theme: we’re facing the data privacy paradox in nearly every aspect of our lives.
In a recent study, “72 of the 81 IoT devices tested shared data with third parties completely unrelated to the original manufacturer. And the data they shared went far beyond just basic information about the physical device being used – it also included IP addresses, device specifications and configurations, usage habits, and location data.”
With the influx of massive data breaches in the last 6 years, particularly in banking, it’s imperative that before IoP reaches status quo, increasing security, privacy, and authentication are achieved. Otherwise, we have an entirely new beast to conquer.
Jordan McKee, Research Director with 451 Research & Forbes Contributor, will we attending our Digital Enterprise CIO & FSI Transformation Assembly next month, for more information, go here!