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IBM and Visa will enable secure credit purchases from the car and smart watch * The company established an IOT headquarters in Munich

According to Gabi Zodik, leader of the IoT and mobile field at IBM Research worldwide: "In the future, we will use personal assistants with deep learning capabilities that will provide us with insights that we would not be able to reach independently - thus helping to optimize our daily routine in a way we did not know."


IBM's Watson-IOT headquarters in Munich. PR photo
IBM's Watson-IOT headquarters in Munich. PR photo


IBM and the global Visa credit card company are collaborating to establish the world's first system that enables secure payment through the Internet of Things (IoT).

The Watson platform for the IoT field already serves more than 6,000 customers communicating with millions of devices connected to the network. The collaboration combines IBM's knowledge and expertise in the field of artificial intelligence and cognitive computing with Visa's worldwide payment management systems, which process approximately 60% of the payments made in the world.

According to the shared vision promoted by IBM and Visa, it will be possible to make payments and purchases from any IoT device - from smart watches and rings, to home appliances and cars. As part of the collaboration, the companies for whom these payments are collected will benefit from access to Visa's clearing services, through the Watson IoT platform. A secure digital payment will be possible, for the entire width of the product and service lines. IBM and Visa will make it possible to conduct commerce and electronic business from any connected device, anytime and anywhere.

Dr. Gabi Zodik, leader of the IOT field at IBM Laboratories. Photo by Miri Davidovitz
 Gabi Zodik, leader of the IOT field at IBM Laboratories. Photo by Miri Davidovitz

According to Gadi Zodik, a field leader IoT and mobile in IBM Worldwide: "IoT is changing the world around us, both at the consumer level and at the level of possibilities it offers to businesses around the world, with an efficiency that could not be imagined before. A combination of IBM's IoT technologies and Visa's payment services will allow the consumer to choose to make payments from any device connected to the network, simplifying the purchase process and significantly improving the customer experience.

An example of the actual application of the new cooperation is that of the automotive world. According to estimates, in 2021 there will be around 330 million connected cars on the world's roads. Connecting this environment to the Watson IoT platform will allow the driver to be updated towards the end of the warranty period on the car, the termination of contracts with various service providers or a date for required care of the vehicle - and schedule an appointment at the driver's preferred garage with the push of a button.

Another example of the application of cooperation is a physical activity monitoring device. Through the collaboration, a running enthusiast who has a dedicated sensor integrated into his sports shoes will be able to receive a notification about the need to change the pair of shoes, along with recommendations for a new model - directly from the smart watch worn by the fitness enthusiast. At the same time, energy drinks can be recommended to him based on the extent of his training, or the appropriate clothing - taking into account the weather forecast in his training area. The device will request authorization to order and purchase the product the end consumer is interested in - and Visa's clearing systems will process the payment, securely.

As part of the collaboration, all customers of the Watson IoT platform will benefit from access to the services offered by Visa - through Bloomix - IBM's cloud. Instead of managing communication between each business and the credit company separately, IBM and Visa offer immediate access to these clearing capabilities, in a way that allows you to start building a customized e-commerce experience.

The collaboration between IBM and Visa was revealed at the first international conference in the Internet of Things, held this week at the Watson Group's global operations headquarters for the Internet of Things, which IBM launched in Munich.


Inauguration of the IOT headquarters in Munich


The Watson system allows IBM customers to take advantage of the business opportunity in the market expected to reach 14.2 trillion dollars in 2022. About 6,000 IBM customers already use systems produced by it and its consulting and implementation services. IBM's list of clients and partners includes giants such as Whirlpool, Honda, BMW, Visa, Cisco and Siemens.
IBM's leading position in the field of IoT rests on an investment of 3 billion dollars, which is intended to establish Watson as an infrastructure for applications in the new and rapidly developing world. At the same time, IBM established a global environment of partners, ranging from innovative start-up companies to global giants, who share a common agenda centered on the promotion of digital transformation with the help of Watson and cognitive technologies.
The investment in the establishment of the Watson IoT headquarters in Munich amounted to 200 million dollars. This is the largest project of its kind that the company has established in Europe for over two decades.

IBM predicts that 2017 will become a turning point in the field of IoT. The way people communicate with the world changes every second: according to a forecast by the consulting company IHS, in 2020 there will be more than 30 billion devices connected to the network - compared to 15.4 billion that were active in 2015. The scope of the market in this area is estimated at 1.7 trillion dollars.
The contribution of the research laboratory in Haifa to the global IoT field

The research laboratory in Haifa, which is the largest outside the US, has a great contribution in the field of IoT. The laboratory's researchers lead the research and development related to voice interaction capabilities of people and computers and are responsible for the development of a wearable computing system and IoT for safety at work. Their work with the IoT platform played a central role in the collaborations with companies such as: Whirlpool, Honda, BMW, Cisco, Siemens. The research laboratory in Haifa also has a substantial contribution in the field of IoT security capabilities.

According to Gabi Zodik, leader of the IoT and mobile field at IBM Research worldwide: "The future of IoT applications is going to change in a fundamental way, when the interaction with cognitive systems will be multidimensional and personalized and will be based on voice, physical gestures, text, and video." Zodik points out that "in the future we will use "personal assistants" with deep learning abilities who will provide us with insights that we cannot reach independently - thus helping to optimize our daily routine in a way we did not know."

Cooperation with global giants

The Watson IoT headquarters established in Munich covers an area of ​​15,000 square meters. The headquarters employs more than a thousand researchers, designers and developers, in a first of its kind combination between activity in the field of IoT and between activity in the field of artificial intelligence and cognitive computing.
By harnessing the Watson system to this effort, IBM enables clients to understand the meaning hidden in the incomprehensible data coming from millions of connected devices - to navigate and explore this data, in order to build new business models, and ensure service excellence.
7 of the 10 largest automobile companies in the world, 8 of the 10 largest oil and gas companies in the world, 11 of the 20 largest infrastructure companies in the world, 6 of the 10 largest energy companies, 9 of the 15 busiest airports in the world and 11 of the 12 largest companies in the world In the fields of defense and space - IBM solutions are already being used in this field.
Thus, for example, BMW - whose global operations headquarters are located next to Watson's new headquarters in Munich - is developing new systems to improve the driver's experience, using a smart operating system based on Watson.
Siemens is using IBM's cognitive system to reduce the energy consumption of smart buildings by up to 50%.
The retail giant Walmart monitors the supply chain of food sold in the chain's stores, from the farm to the shelf - and monitors the quality of the products and its transportation conditions.
The home appliance giant Bosch will use Watson infrastructure to monitor thousands of washing machines and tumble dryers - in a way that will ensure constant updates to customers about the range of services and products available to them, including the possibility of placing an automatic order for laundry soap.
At the IBM customer conference taking place this week in Munich, the company revealed new collaborations in Internet of Things applications with companies such as CapGemeni, BNP Parnibas, Avnet and with the Indian Mahindra Tech concern.
Worthy of special mention is the new collaboration between IBM and the credit company Visa, which will enable secure payment from Internet systems of things related to the network - through a Visa application offered on Bluemix - IBM's computing cloud. The new solution will provide an infrastructure for making purchases from vehicles, using smart watches and wearable computing - all in a secure format, and while customizing the offer of products and services to the unique characteristics and needs of each customer.

Watson for startups recruiting on INDIGOGO

The IBM IoT headquarters in Munich will for the first time also enable joint work between IBM developers and developers employed by the company's clients. Among these external entities, whose people will actually work at IBM's IoT headquarters, we can mention Vodafone, Cap Gemini, Mahindra, BNP and others. All strive to promote new business models and services available in the IoT world. At the same time, IBM will instead employ 1,500 consultants belonging to the Watson Services consulting group, which operates worldwide.
Cooperation with a crowdfunding site. In order to promote the development activity in the field, IBM is establishing a unique collaboration with the crowdfunding site INDIGOGO and placing the Watson platform in the world of IoT, at the service of the start-up companies that raise funding with the help of the site.

One response

  1. IBM are champions in words, idle partnerships and fantasies, but in practice, in an amazing sequence, in all of the last 19 quarters, the company's business performance has been in constant decline. This is a crash path, but the management of the company there and the managers of the Israeli branch here are disconnected from reality, daydreaming. It only ensures that the crash is even closer than it seems.

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