Interac leverages its payment platforms in a new and innovative way, creating a win for a green-power utilityย
Picture yourself a few years from now. Itโs after work, and youโre pulling into the driveway in your electric car. Youโre about to plug it into the charging outlet when an app pings you with a notification.ย ย
Itโs asking: Would you be willing to wait until the middle of the night to recharge your vehicle? This will accomplish two things: First, youโll reduce theย demandย on your local power grid, which relies on solar energy. Second, in exchange for agreeing, youโll receiveย (for the sake of this example)ย $5, which will be instantly available to you via anย Interacย e-Transfer.ย
Since you donโt plan to drive again until the next morning, you accept. Itโs a bonus for you, a help to your energy provider โ and, in the big picture, a win for the environment, because itย helpsย make renewable power more financially viable for everyone.ย ย
For a group of homeowners, that scene played out in real life this spring, and Interac played a central role in making it happen.ย ย
Oscar Roque,ย AVP, Innovation, Research & Emerging Solutions for Interac,ย notes that the companyโs platforms and products already allow millions of Canadians and Canadian businesses to make fast, secure financial transactions. In the future, he says, โWeโll need to develop even more ways to work and transact with each other in harmony.โย
As the world looks for ways to combat climate change, the good news is that two key pieces of our arsenal โ renewable energy generation, and low- or zero-emission vehicles and devices โ are proliferating. The challenge? Co-ordinating these resources in real time so that electricity can be generated and distributed efficiently.ย ย
In a three-month pilot project earlier this year, Interac partnered withย Alectraย Utilities and IBM to test a potential solution โ one that involved โreal consumers, real solar panels, real batteries, real electric vehicles and real money,โ Roque says.ย
Hereโs how it worked: A small test group ofย Alectraย customers โ all of whom have solar panels, electric home batteries and/or electric vehicles โ downloaded an app that offered incentives to generate or consume power at certain times. If everyone followed the incentives, the efficiency of the grid would be optimized.ย ย
ย Consumers were offered โsparksโ โย orย tokens that could be converted into Canadian dollars. Thanks toย Interacย e-Transferย Autodeposit, the rewards appeared right away in customersโ bank accounts.ย
The solution used IBMย blockchain softwareย to facilitate a secure communication system behind the scenes, which enabled the various parts of the network to talk to each other.ย ย
Roque spends much of his time exploring the potential of new technologies to deliver real-world benefits to Interac customers and stakeholders. For three years, heโs been working on evaluating concepts that make use of blockchain technology.ย ย
โWe have to get a grip on how it could change our business,โ he says. And among the blockchainย projectsย Roque has seen, the Interac-Alectra-IBM partnership stands out as a โgreat use case.โย ย
The way things typically work now, Roque explains, consumers who have solar panels can receive incentives for sharing their surplus power โ but the bonuses arrive relatively slowly, in the form of credits on their energy bills. Blockchain allowed the pilot-project homeowners to receive incentives instantly and conveniently. It also created a verifiable, auditable data trail for each bit of energy produced andย โsparkโย awarded.ย
At Interac, Roque says, โWe have a real-time payment platform. That allows you toย move money quickly and conveniently.ย In this case, once the money is transferred, peopleย can useย Interacย Debit,ย Interacย Flash, toย make a purchaseย atย one of the nearly half million businesses on the Interac network.โ With the right encouragement, the project partners learned, homeowners could be incentivized to follow energy-efficient behaviour patterns โ a discovery that could have huge implications if scaled up and introduced across Canada.ย
Looking past the energy sector, Roque believes the project demonstrates the potential of blockchain-based partnerships to deliver wins in other realms โ financial services, healthย care, and beyond. Roque believes Interac, with its long history of bringing various stakeholders together to put new technologies into daily use, is well-poised to facilitate these partnerships.ย ย
โFor 35 years, we have governed a number of different platforms,โ Roque says.ย โFrom an innovation perspective, we think: How do you actually leverage those platforms,ย services, and our governance expertiseย to do more?โย
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