The banking and payments industry continues to be a hotbed of innovation owing to ever-changing consumer expectations. The rapid technological developments in the areas of banking and payments that aim to offer seamless experience to consumers are now becoming even more vital for industry participants as competitors leverage new technologies such as artificial intelligence, Internet of Things, cybersecurity, and embedded finance as they compete to stay relevant and grow in the market. In the last three years alone, there have been over 92,000 patents filed and granted in the banking industry, according to GlobalData’s report on Internet of Things in Banking: V2G payments.
However, not all innovations are equal and nor do they follow a constant upward trend. Instead, their evolution takes the form of an S-shaped curve that reflects their typical lifecycle from early emergence to accelerating adoption, before finally stabilising and reaching maturity.
Identifying where a particular innovation is on this journey, especially those that are in the emerging and accelerating stages, is essential for understanding their current level of adoption and the likely future trajectory and impact they will have.
60+ innovations will shape the banking industry
According to GlobalData’s Technology Foresights, which plots the S-curve for the banking industry using innovation intensity models built on over 195,000 patents, there are 60+ innovation areas that will shape the future of the industry.
Automated toll payments, payment actuated vending, and contactless card scanners are some of the accelerating innovation areas, where adoption has been steadily increasing. Among maturing innovation areas are near field communication (NFC) payments and contactless payments, which are now well established in the industry.
Innovation S-curve for Internet of Things in the banking industry
V2G payments is a key innovation area in Internet of Things
V2G refers to the concept of using electric vehicles (EVs) as a distributed energy resource, allowing them to participate in the energy market by providing grid services such as balancing supply and demand, frequency regulation, and energy storage. In exchange for providing these services, EV owners can receive payments from utilities or other market participants.
GlobalData’s analysis also uncovers the companies at the forefront of each innovation area and assesses the potential reach and impact of their patenting activity across different applications and geographies. According to GlobalData, there are 30+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of V2G payments.
Key players in V2G payments – a disruptive innovation in the banking industry
‘Application diversity’ measures the number of different applications identified for each relevant patent and broadly splits companies into either ‘niche’ or ‘diversified’ innovators.
‘Geographic reach’ refers to the number of different countries each relevant patent is registered in and reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.
Patent volumes related to V2G payments
Source: GlobalData Patent Analytics
Mastercard is a key patent filer in the field of V2G payments. The company has filed several patents related to transactions of electrical energy for electrically-powered vehicles, utilising vehicle connectivity in association with payment transactions, and systems for charging an electric vehicle. Some other key patent filers in the V2G payments industry are NEC and China UnionPay.
In terms of application diversity, AES leads the pack. Mitsubishi Heavy Industries and Tanktwo stood in the second and third positions, respectively. By means of geographic reach, Mitsubishi Heavy Industries holds the top position, followed by Honda Motor and Electricite de France.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Internet of Things (IoT) in Banking.