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DLM is an initiative undertaken by MCMC to promote and accelerate the development and adoption of applications and services.

The Internet of Things is a web in which gadgets, machines, products, devices & inanimate objects share information in new ways, in real time.

The focused ecosystems in this period are Connected Healthcare, Traceability for food and drug, People Friendly Commuting; and Home & Community Living.

Digital Lifestyle eco-system development is promoted based on a model of collaboration or partnership with the industry.

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Internet of Things to change retail and payment

PETALING JAYA, Sept 2 — Internet of Things (IoT) has the potential to revolutionise retail and payment eco-systems as consumers move away from traditional payment methods to e-payment via applications on their mobile phones. Malaysian Communications and Multimedia Commission (MCMC) department of digital lifestyle and society director John Tay said consumers can tap and get more information about products before buying and only need to scan, wave or a few clicks via mobile applications when they intend to make a payment through their phones.

“This technology will make shopping cashless, hassle-free as consumers do not need to bring cash. It can eliminate the long queues at checkout counters,” he said. The future of retail and payment is part of the development of IoT which uses smart sensors or beacons to collect, share and analyse real-time data to provide operational efficiency, reduce costs through new digital products and services and a new business model and customer experience. According to a study by Retail Systems Research (SRS), 54 per cent of retailers worldwide with above average sales growth believe IoT is poised to change the way business is conducted in the next few years.

“The opportunity for IoT in the retail market is wide and will reduce the burden that retailers and consumers face by allowing them to better manage their retail operation and handling of cash or e-payments using the latest technology,” said Tay. Tay said it could also help retailers run their businesses smoothly with the assistance of technology like radio frequency identification devices (RFID) tags for inventory control, Near-Field Communication, QR code, augmented reality (AR), Wifi, location based beacon technology, smart price tags, smart shelves, smart shopping carts, digital signage and data analytic tools. Tay also said through the smart price tag, business owners can change the price of items without having to re-tag them simply by making changes on the server that will update the smart tag which would ensure changes are done for items in the entire store. “This would make it much simpler work for them as they do not have to create another tag and re-tag all of the items on the shelves. They will become more competitive with efficient inventory control,” he said.

He said retailers would also be able to monitor the time spent by each customer at the most visited areas in a particular store with video analytics. With the information, retailers can further improve store layout and merchandise placement strategies with sensors and beacons in their outlets and come up with new business strategies. Also with RFID or QR code and traceability of products, consumers can also shop with confidence as products are validated online to ensure authenticity. Manufacturers and retailers can help reduce their costs associated with a recall or product contamination.

Tay said IoT can connect back-end retail and payment systems which have the capability of providing better services and reduce the security the handling of cash by their employees. “With real time data analytics, business owners can make faster and better decisions to improve their products and services to provide a better customer experience and maintain customer loyalty and gain insight into new business opportunities. “Yale Economic Review last year opined that the Internet of Things will revolutionise the payment industry not just for consumers but payment companies, retailers and technology manufacturers,” he said.

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