The retail industry continues to be a hotbed of innovation, with activity driven by many factors including regulatory reforms and the growing importance of blockchain technologies for validating transaction data and user identity. In the last three years alone, there have been over 133,000 patents filed and granted in the retail industry, according to GlobalData’s report on Cybersecurity in Retail: Anonymous transaction handling.
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.
70+ innovations will shape the retail industry
According to GlobalData’s Technology Foresights, which plots the S-curve for the retail industry using innovation intensity models built on over 128,000 patents, there are 70+ innovation areas that will shape the future of the industry.
Within the emerging innovation stage, smart contracts and transaction data blockchain are disruptive technologies that are in the early stages of application and should be tracked closely. Biometric authentication, biometric payments, and blockchain payments are some of the accelerating innovation areas, where adoption has been steadily increasing. Among maturing innovation areas are user biometric authentication and e-commerce robotic process automation, which are now well established in the industry.
Innovation S-curve for cybersecurity in the retail industry
Anonymous transaction handling is a key innovation area in cybersecurity
Cryptocurrencies, including Bitcoin, are designed on blockchain technology. The technology provides decentralisation. Digital assets such as these can work independently of any controlling central body. People consider cryptocurrencies untraceable, tamperproof, and anonymous. These are believed to enable anonymous transaction handling.
The transactions on a blockchain are identified only by an alpha-numerical string called a public key. The key renders bitcoin transactions pseudo-anonymous. Blockchain can offer advanced security controls by utilising public key infrastructure for the authentication of parties and the encryption of their communication.
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 80+ companies, spanning technology vendors, established retail companies, and up-and-coming start-ups engaged in the development and application of anonymous transaction handling.
Key players in anonymous transaction handling – a disruptive innovation in the retail 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 anonymous transaction handling
Source: GlobalData Patent Analytics
Leading players in terms of patents filed in the anonymous transaction handling space are SoftBank Group, Headwater Research, Headwater Partners, Visa, Capital One Financial, Cox Enterprises, and AT&T. In 2019, AT&T became one of the initial mobile carriers to accept payments in Bitcoin, allowing customers to pay their bills in the cryptocurrency via a third-party provider.
In terms of application diversity, Technikka Conexion, adidas, Dominion Harbor Enterprises, and Cox Enterprises are the leading players.
In terms of geographic reach, Headwater Partners, Authentify, Early Warning Services, and Huawei Investment & Holding are the top players.
Crypto payments are expected to rapidly increase in the future owing to their ability to lower cost of process transactions, enhance transparency for consumers, and reduce fraud risks.
To further understand the key themes and technologies disrupting the retail industry, access GlobalData’s latest thematic research report on Cybersecurity in Retail.
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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.
GlobalData’s Patent Analytics tracks patent filings and grants from official offices around the world. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.
