It’s said the whole is other than the sum of its parts, but often, it is the parts that are more interesting — and more malleable.
Human history has been defined by using the parts to build a new, frequently better, whole.
Now, that momentum is being brought to the computer chip industry with small, modular integrated circuits called “chiplets” that are helping chipmakers move beyond the existing limitations and shrinking unit economics of traditional computer chips.
Chiplet-based designs could revolutionize and transform both enterprise software and payments themselves.
Traditionally, compute performance has been improved by making transistors smaller and fitting more of them onto chips. The ability to do this doubles around every two years in a phenomenon known as Moore’s Law. But Moore’s Law has progressed to the point where it is becoming expensive to continue shrinking transistors, given how far we’ve already come, much less to create and perform the complex layering and stacking necessary to then fit the transistors onto a computer chip.
In today’s era, most transistors in commercial chips are around 20 nanometers. When using silicon, the preferred material of nearly all chipmakers, it is not possible to shrink transistors below 5 nanometers — which is why chiplets could be so important.
Particularly within payments, chiplet technology offers a modular and flexible approach to designing digitally-driven transaction systems, enabling improved performance, security, cost efficiency and scalability. As the technology continues to advance, it could play a role in shaping the future of electronic payments.
See also: The Impact Quantum-Powered AI Could Have on Payments
Already, Apple is using chiplet technology across its high-end computer line, and chipmakers from Intel to AMD are beginning to commercialize the computing component.
The key to the power of chiplets is their modularity and ability to be designed for specific functions. When disparate chiplets are linked together, they can create systems. Because they are so small, they are less likely to contain defects than a single chip crammed with as many transistors as possible, which makes the manufacturing process less expensive.
The adoption of chiplets has been held back by a lack of technical standards for packaging, but that is changing as the industry comes to adopt an open-source standard known as Universal Chiplet Interconnect Express, which should make it easier to combine chiplets made by different companies in mix-and-match architectures that work together like a brain.
Chiplet technology means that each component, such as processing units, memory and security features, can be optimized for its specific function, providing the flexibility to address the unique needs of, say, different payment ecosystems — and could lead to faster and more efficient processing of electronic payment transactions.
Read also: 12 Payments Experts Share How AI Changed Everything in 2023
With chiplets, designers can create modular and customizable payment processing units. This modularity allows for easier upgrades or replacements of specific components without the need to redesign the entire system. This flexibility can accelerate the adoption of new technologies and standards in electronic payments, as well as allow successful chiplet designs to be scaled to meet the evolving demands of electronic payment systems.
Chiplets also could provide value adds across the security and energy efficiency of payment systems. The inherent segregation of chiplet systems enhances overall security by protecting sensitive data from potential breaches, while the ability to optimize individual chiplets for specific tasks can achieve better energy efficiency, something crucial for mobile and battery-powered payment devices.
Across the B2B payment ecosystem, chiplet technology can be used to create specialized components for handling complex financial calculations, risk assessments and compliance checks, as well as allow for modular and customizable designs, enabling the creation of payment solutions tailored to the unique requirements of different industries and enterprises.
Chiplets can also facilitate seamless integration with existing enterprise systems, such as enterprise resource planning and supply chain management software. This integration can enhance the efficiency of B2B payment processes by automating tasks and improving data accuracy.
Within a consumer payments setting, chiplets can be optimized for tasks like contactless payments, biometric authentication and near-instant transaction approval, enhancing the overall user experience.
Chiplets can also be integrated into connected devices popular with consumers, including wearables, smart home devices or connected cars, providing users with diverse payment options.
Here at PYMNTS we cover the Connected Economy as well as banking and payments. You can call it the smart economy or the digital economy. However, as Karen Webster wrote when she introduced the concept and our research methodology for defining it, “that connected economy will be the result of the full force of the Internet of Things (IoT) in action. Just about every device will be connected to the internet and capable of enabling a transaction – between every possible permutation of machines, people and businesses. In this new connected economy, we will find ourselves living in a world where new networks, intermediaries and enablers will change what is today considered the payments and commerce status quo.”
We bet Amazon was listening with Alexa. It presaged the popularity of digital wallets. You could even say it predicted the rise of artificial intelligence (AI).
The connective tissue for the connected economy comes in the form of devices with the phone at the center. And it’s shaping consumer’s day-to-day interactions. A new PYMNTS report, “How People Pay: Consumer Preference for Connected Technology,” uncovers how device ownership is shaping payment behavior and what it means for financial services professionals.
“This isn’t just about smartphones anymore,” states an article about the report. “Consumers are accumulating an array of connected devices, from smartwatches and tablets to voice-activated speakers and even cars with built-in capabilities. The report dives into how this increasing connectivity influences payment preferences, revealing that those with more devices are likelier to embrace digital wallets and online shopping. It segments consumers into distinct personas — Basic Tech, Mainstream Tech and Connected Tech — based on their affinity for and ownership of connected devices. Understanding these personas is crucial for businesses looking to stay ahead of the curve in the rapidly evolving payments landscape.”
There’s some brilliant stuff out there in the smart or connected device world. Check out LG’s smart mirror refrigerator that connects to Instacart. But there’s a lot of other “connected” or “smart” products that have us shaking our heads. Remember “there’s an app for that” a few years ago? Get ready for “my app is cooking my pizza.” Here’s a decidedly incomplete list of somewhat bizarre, connected devices because well, you might need one.
Tired of the arduous task of controlling your toilet manually? The Kohler PureWash E930 Bidet Seat transforms your humble porcelain throne into a voice-activated command center. Compatible with both Google Assistant and Amazon Alexa, this connected commode responds ponds to verbal instructions to clean itself, activate bidet spray functions or turn on the dryer.
Narcissism reaches new heights with the Selfie Toaster, a $70 smart appliance that burns your facial likeness onto bread. Using laser technology similar to a printer, this culinary curiosity transforms ordinary toast into a vaguely recognizable version of your face. While the results might not capture your best features (and often lean toward the unsettling), there’s something uniquely post-modern about literally consuming your own image for breakfast.
For those who find manually sprinkling sodium chloride too taxing, the connected salt shaker brings app-controlled seasoning to your dining table. This battery-powered salt dispenser connects to your smartphone, allowing you to adjust the quantity of salt dispensed with precision, track your sodium intake, and presumably impress dinner guests with your commitment to tech-enhanced condiments. At several times the price of a traditional salt shaker, this gadget proves that even the simplest kitchen implements aren’t safe from the compulsion to add Bluetooth.
The HAPIfork takes dining discipline to new digital heights by vibrating whenever you eat too quickly. Programmed to ensure you extend your meal to at least 20 minutes, this connected utensil monitors the speed of fork-to-mouth movements and provides haptic feedback when you’re shoveling food too rapidly.
WordPad’s MouthPad transforms your tongue into a computer mouse through a dental-grade resin mouthpiece that sits on the roof of your mouth. This 3D-printed oral intrusion allows users to navigate iOS, Android, PC, and Mac interfaces through tongue movements. While ostensibly designed as an accessibility tool, the concept of turning your mouth into an input device raises questions about both hygiene and social acceptability. Imagine the conversation starter at your next business meeting: “Sorry for the mumbling, I’m just scrolling through my presentation with my tongue.”
Looking suspiciously like a character from “Among Us,” Samsung’s Ballie is a mobile spherical robot equipped with a projector that follows you around your home. This AI-powered companion can project YouTube videos onto any surface, including your ceiling, and uses its cameras to detect your position, monitor your sleep, and presumably watch you when you least expect it. While the technology is undeniably impressive, there’s something slightly unsettling about an autonomous ball rolling through your home, projecting content and collecting data while you sleep.
For those plagued by egg-related anxiety, the Egg Minder connects your refrigerator’s egg tray to WiFi, allowing an app to track how many eggs remain and when they’re approaching expiration. This solution handily replaces such complex egg freshness detection methods as “looking at the date on the carton” or “the float test.” With built-in LED lights that indicate which egg has been in the tray longest, this smart egg babysitter ensures you’ll never again face the existential crisis of egg uncertainty—provided you remember to place each egg precisely in its designated sensor-equipped slot and regularly check the companion app.
While the Internet of Things has genuinely transformed industries and improved efficiency in meaningful ways, these particular innovations remind us that connectivity doesn’t automatically equal utility. As we continue advancing into an ever-more connected future, perhaps the most valuable skill will be discerning which smart devices actually make life better and which will end up in a tongue-in-cheek roundup on PYMNTS.