Mobile World Congress 2018: How Payments and IoT Shape the Future

In today’s hyper‑connected landscape, the Mobile World Congress (MWC) in Barcelona has evolved far beyond a showcase for the newest smartphones. The event now serves as a global barometer for innovations that reshape how we transact, both in physical stores and online.

With mobile technology becoming a cornerstone of in‑store and e‑commerce payments, we ask: what did MWC 2018 signal for the payments sector in 2018 and beyond?

Connected Cars: Driving the IoT Payment Revolution

The rise of connected vehicles, coupled with rapid advances in autonomous driving, presents unprecedented opportunities for the payments industry. Luxury car manufacturers set the tone this year, as noted by David Worthington, Vice President of Strategic Business Development at Rambus.

In‑car payments promise to streamline transactions at parking meters, toll booths, and fuel stations. They also enable dynamic, usage‑based insurance premiums that reflect real‑time driving data collected by the vehicle, offering insurers and drivers more accurate, fair pricing.

Beyond automobiles, the IoT payment ecosystem is expanding. Smart refrigerators can automatically reorder groceries, while voice assistants like Alexa and Google Home are linked to bank accounts for instant balance checks. Gartner projects 20 billion connected devices worldwide by 2020, underscoring the scale of this shift.

However, the rapid proliferation of IoT payment channels also opens new avenues for cyber‑criminals. As with smartphones, the industry must adopt a standardized, robust security framework for both devices and data in transit. Payment tokenisation—restricting the use of unique tokens to specific devices, merchants, or transaction types—plays a pivotal role in curbing fraud across emerging IoT channels.

Retailers Embrace the “Go” Movement

In an era where time is a premium, consumers increasingly reject waiting in lines. High‑profile pilot projects such as Amazon Go have captured public imagination by eliminating the traditional checkout process, redefining in‑store shopping experiences.

Merchants are racing to keep pace, using smartphones to simplify checkout without the overhead of new infrastructure. At MWC, several innovations were showcased: Barclaycard’s Dine & Dash app—currently trialed by UK chain Prezzo—lets diners eat and leave, settling their bill with a single tap. MasterCard introduced Qkr! Masterpass, enabling customers to order, pay, and split bills at Pizza Hut franchises across the UK.

Automotive payments also saw progress: Total unveiled a mobile wallet that allows motorists to select and pay for fuel via an app, bypassing complex pay‑at‑pump terminals. At the Rambus booth, mobile scan‑and‑go technology was highlighted as a key enabler for seamless, in‑aisle checkout.

Real‑Time Redemption: The Loyalty Advantage

While billions of loyalty memberships remain inactive, active users generate 15% more revenue than average shoppers. Merchants operating on thin margins stand to gain a competitive edge by delivering value‑added services (VAS) efficiently.

Real‑time redemption—delivering rewards instantly rather than accumulating over time—has been shown to boost consumer spend by up to 25%. Mobile wallets provide the scalable platform to achieve this. For example, Ingenico announced an integration with Google Pay Smart Tap, enabling coupons and rewards to be added to everyday payments.

Ultimately, consumers will soon be able to combine credit, points, and coupons in a single transaction, tailoring their payment mix on the fly. Merchants who adopt smarter VAS redemption strategies are positioned to drive higher engagement and loyalty.

Author: David Worthington, Vice President of Strategic Business Development, Rambus