Autonomous IoT Payments Market Trends

Growth Drivers

• Demand for contactless payment methods: The secured-streamline system offers speed and convenience, which enhances the consumer experience. The adoption of IoT payment has broadened remarkably in past years due to the integration of smart devices. This method allowed everyone to pay through a single device for everything, promoting the cashless campaign. The rise in e-commerce shopping and subscriptions has also impacted autonomous IoT payments. The 2023 BIS report states that the annual average number of digital payments per person increased from 179 in 2012 to 332 in 2021 in the Red Book statistics countries. Contactless transaction systems have also become a market trend after the pandemic struck. In that era, the fear of infection fostered digitalization in every sector, further introducing IoT methods in cashless payment.
• Government support in digitalization: Commendatory governing bodies on digital payments are encouraging the autonomous IoT payments sector to boost. Additionally, authorities are investing to increase the efficiency and sustainability of IoT devices to supervise safe transactions. Governments are establishing clear standards for companies to ensure data privacy, and build consumer trust. Many are contributing to the autonomous IoT payments market growth through financial subsidies to strengthen research and innovation in IoT payment technologies. The intention of building smart cities encourages governments to facilitate autonomous IoT solutions for infrastructure maintenance. In August 2023, the Government of India approved the extension of the DI program with a total outlay of USD 1.8 billion, covering the period from 2021-22 to 2025-26. This investment was made to expand digital payments across the country.

Challenges

• Security of data and increasing scams: Considering the volume of sensitive financial information, the risk of data corruption can restrict market growth. The evolving technology of IoT consists of a complex ecosystem, making it difficult to deliver consistent security over all devices and platforms. A single inadequate transaction can lead to unauthorized access, further redirecting to phishing attacks. The increased number of cybercrimes is threatening consumers to trust new technologies. Such scams have become the reason behind the lack of adoption for newcomers.
• Lack of regulatory consent: Complicated regulations of individual regions can be challenging to follow during innovation. This uncertainty may slow the process of new technology development, hindering new market entry. The unclear regulatory framework can lead to discrepancies in data handling practices, further deteriorating consumer confidence. Furthermore, individual regions develop indifferent market standards, which can restrict the global operations of companies.