Unraveling the Synergy

Over the past years, Quantoz has been working on different projects related to IoT and M2M payments in mobility, logistics, and financial services, where our QUASAR IoT payment technology acts as a central medium for identifying, initiating, storing, and processing transaction information, meeting all regulatory and legal requirements placed on electronic payments.

M2M payments, IoT payments, and Asset as a Service (AaaS) are interrelated concepts in the scope of digital transactions. This article explains what these concepts have in common, where they differ, and their advantages.

Machine to Machine (M2M Payments)

M2M payments are transactions that occur solely between machines or devices without human intervention. M2M payments enable the automation of transactions, resulting in more efficient and cost-effective processes.

M2M payments can work without IoT technology. IoT technology often facilitates M2M transactions by enabling communication between machines and devices, however, it is not a requirement for M2M payments. M2M payments can also be made using other communication protocols and technologies, such as local area networks, allowing machines and devices to exchange data and initiate payment transactions without relying on a broader IoT infrastructure.

IoT Payments

IoT payments, on the other hand, refer to transactions enabled by IoT technology and can be seen of as a subset of M2M payments, with a specific focus on payment functionality.

Connected devices are used to initiate payments without physical cash or cards. IoT payments can be made using a variety of methods, including NFC, QR codes, and Bluetooth. Some examples of IoT payments include using a smartwatch to pay at a shop, or a connected car to pay for parking or tolls.

Another example is our ‘smart pallet’ project with BASF. With the help of this ‘smart pallet’, flows of goods can be electronically recorded directly and in real-time. The resulting data sets are used, for example, to monitor the delivery flows and conditions of the goods and to initiate financial transactions synchronized with the real flow of goods.

Asset as a Service

IoT payments focus on facilitating transactions through connected devices, while Asset as a Service focuses on providing access to assets or services through a pay-per-use basis, rather than being owned outright. This can include equipment, vehicles, or infrastructure. A well-known Asset as a Service model is renting or leasing equipment, such as construction equipment or manufacturing machinery on a pay-per-use basis. This model has several advantages:

Cost savings: Renting or leasing equipment on a pay-per-use or subscription basis can be more cost-effective than purchasing the equipment outright and reduce capital investments.

Flexibility: Asset as a Service allows businesses to scale up or down their equipment usage as needed, giving them more flexibility to adapt to changing business needs.

Reduced maintenance and repair costs: because only working equipment generates revenue for the provider, highest availability and maintenance of the equipment become the responsibility of the provider.

Access to newer equipment: Providers often have the latest equipment, which businesses may not be able to afford to purchase outright.

Tax benefits: Renting or leasing equipment can have tax benefits as it’s considered as an operating expense, thus it can be written off as a business expense.

Further readings

In cooperation with Deloitte Germany, we offer a standardized “out-of-the-box” solution for IoT and M2M payments that has been tried and tested with various customers and industries. More information about this solution is available in this article on our website: IoT-enabled business models: new business models through the use of data.

Are you ready to embrace the transformative power of M2M payments, IoT payments, and Asset as a Service? Discover how our QUASAR IoT payment technology can revolutionize your business. Contact us now to learn more and embark on a new era of digital transactions!

IoT Payments

QUASAR, our IoT payments solution, enables instant and compliant payments between devices, businesses and people. It is designed to smoothly integrate into existing financial systems.

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Integration with accounting

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    Published On: May 22nd, 2023 / Categories: Publications /


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