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IBM and Visa Turn Automobiles, Appliances and All Other Connected Devices into Potential Points of Sale with Watson Internet of Things

MUNICH – IBM (NYSE: IBM) and Visa Inc. (NYSE: V) today announced a first of a kind collaboration that brings the point of sale everywhere by allowing businesses to quickly introduce secure payment experiences for any device connected to the Internet of Things (IoT).

The collaboration brings together IBM’s Watson IoT platform and cognitive capabilities and Visa’s global payments capabilities that are processing more than 60 percent of the world’s payments. IBM’s Watson IoT Platform allows businesses to connect to billions of connected devices, sensors and systems around the world and then draw actionable insight. Today the platform is used by more than 6,000 clients that are helping customers connect to millions of devices.

IBM and Visa share a vision of a commerce-based IoT world where any device, from a watch, to an appliance or a car can make authorized payments on the consumer’s behalf based on their usage of the device. For example, rather than buying a car, the driver could leave the dealer’s lot in a new car with payments being processed automatically based on how far the person drives each day.  

Under this collaboration, companies will gain instant access to the Visa Token Service, a new security technology that replaces sensitive payment account information found on payment cards with a unique digital identifier, via IBM’s Watson IoT platform. Companies can then immediately infuse secure, easy-to-use digital payment capabilities across entire their product lines. As a result, IBM and Visa can support payments and commerce on virtually any of the 20 billion connected devices estimated to be in the global economy by 2020 Gartner, IoT report, November 2015, .

“IoT is literally changing the world around us, whether it’s allowing businesses to achieve unimaginable levels of efficiency or enabling a washing machine to ensure we never run out of detergent. And behind this transformation are companies like Visa and technologies like IBM’s Watson IoT platform,” said Harriet Green, General Manager, IBM Watson IoT. “This combination of IBM’s industry leading IoT technologies with Visa payment services signifies the next defining moment in commerce by allowing payments on any connected object, with new levels of simplicity and convenience for everyone.”

Examples of Commerce-based IoT:
Consider the consumer’s car. Experts estimate there will be 380 million connected cars by 2021 BI Intelligence, CONNECTED CAR REPORT As the car ecosystem connects to the Watson IoT Platform, a driver would be alerted when a warranty or certification is about to expire or if specific car parts, such as a fan belt, need replacing. With this information, the driver can order parts with the push of a button or schedule a service appointment at their preferred local garage. Taking it a step further, the driver could even pay for gas through a direct interaction between the car and the gas pump.

Similarly, with a fitness device, an avid runner with a wireless running chip, could receive a digital alert when it’s time to replace her running shoes, including a recommendation of the best model, at the best price, from a preferred retailer. Additional relevant and tailored recommendations could be offered, including nutrition and equipment recommendations, based on individual performance and local climates after which then can complete the transaction.

“The Internet of Things is not only driving a more connected world, it’s changing the way we live, shop and pay by moving data and the point of sale to wherever the consumer wants it to be,” said Jim McCarthy, executive vice president, innovation and strategic partnerships, Visa Inc. “With the power of Watson’s cognitive technologies and IBM’s leadership in IoT and security, they are the ideal partner to help us deliver secure payments to ‘virtually anywhere’ and on the enormous scale of the IoT.”

How it Works:
Through this collaboration, all of IBM’s Watson IoT Platform customers will have access to Visa services via the IBM Cloud. Rather than approaching businesses on a one-by-one basis, IBM and Visa provide all customers with instant access to these capabilities so they can immediately begin to build personalized commerce experiences that take into account each consumer’s behaviors and proactively make recommendations based on their unique needs.

In addition to bringing personalized payment services to the point of sale, the companies will also ensure that all consumer information remains secure by leveraging Visa’s Token Service, which replaces sensitive account information found on payment cards, such as the 16-digit account number, expiration date and security code, with a unique digital identifier that can be used to process payments without exposing actual account details. The Visa Token Service is accessible through the Visa Ready partnership program that certifies that the next generation of third-party payment solutions meet Visa’s security standards and specifications, and will have seamless and secure global acceptance.

Today IBM is working with more than 6,000 clients, around the globe and across industries, to help them truly realize the benefits of IoT. Many of these innovations are on display at IBM’s Watson IoT headquarters in Munich where today IBM, customers, partners and influencers are gathering for the first ever Genius of Things Summit. At Genius of Things attendees will examine how Watson IoT clients are implementing IoT solutions to drive exceptional outcomes.For more information on IBM Watson IoT, please visit or follow @IBMIoT on Twitter.

For more information on the Visa Ready partner program, please visit

For more information on the Visa Token Service, please visit

About Visa

Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead with prepaid or pay later with credit products. For more information, visit