The Economy of Things (EoT) is an evolution of the Internet of Things, referring to the ability of connected objects to carry out autonomous economic transactions. In other words, it is an ecosystem where physical devices equipped with sensors, computing capabilities, and connectivity can interact with each other and make economic decisions, such as buying or selling resources, without direct human intervention. In the Economy of Things, the objects can be machines, vehicles, appliances, or any other device connected to the internet. These devices are programmed to conduct economic operations, including money exchanges, blockchain-based smart contracts, or resource sharing (e.g., an autonomous vehicle paying for electric charging).
On October 21, 2024, an alliance in the Economy of Things was announced between Vodafone, Sumitomo Corporation, and Mastercard. The first two companies will provide their Pairpoint platform, while Mastercard will offer the online payment system. This innovative service will enable autonomous payments between machines in freight transport and shipping.
The new system connects the Pairpoint platform with Mastercard Gateway, allowing fleet operator vehicles to make direct payments at charging or refueling stations, and freight companies to manage payments for pre-approved operations such as port fees, handling, and storage. These features promise a more efficient and automated management of logistics operations, paving the way for a range of possible applications.
At the core of the solution are digital identities assigned to devices enabled by Pairpoint, identities that are stored within SIM cards and used to facilitate interactions and exchanges between authorized devices on the platform. The service is based on existing IoT technology, allowing connected devices to autonomously transmit and receive data. For instance, a shipping container will be able to autonomously communicate its weight and capacity.
The solution, scalable globally, will be available to all companies in the telecommunications sector and will support payment credentials compatible with all major card networks. The launch is planned for the end of 2024 in the UK, with subsequent expansion across Europe. This collaboration leverages the geographic scale of Vodafone's global IoT platform, which has over 187 million connections, Sumitomo's industrial presence in 66 countries, and Mastercard Gateway's payment acceptance solutions, which connect more than 200 financial institutions across over 80 markets worldwide.
Jorge Bento, Chief Executive Officer of Pairpoint, stated: "Contactless payments via smartphones are now widespread; the next step is to enable devices and vehicles to directly settle bills on behalf of the user. Thanks to the collaboration between Vodafone, Sumitomo, and Mastercard, this is now possible. Together, we can offer customers a secure yet simple way to authorize their machines to make online transactions, while creating new growth opportunities for businesses and advancing the integration of IoT and blockchain."
