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The Internet of Things (IoT) industry is growing very fast to transform factories, homes, farms and practically everything else to make them efficient and intelligent. IoT is applied in different resilient scenarios and applications. IoT faces lots of challenges due to lack of computational power, battery and storage resources. Fortunately, the rise of blockchain technology facilitates IoT in many security solutions. Using blockchain, communication between IoT and emerging computing technologies is made efficient. In this work, we propose a secure service provisioning scheme with a fair payment system for Lightweight Clients (LCs) based on blockchain. Furthermore, an incentive mechanism based on reputation is proposed. We use consortium blockchain with the Proof of Authority (PoA) consensus mechanism. Furthermore, we use Smart Contracts (SCs) to validate the services provided by the Service Providers (SPs) to the LCs, transfer cryptocurrency to the SPs and maintain the reputation of the SPs. Moreover, the Keccak256 hashing algorithm is used for converting the data of arbitrary size to the hash of fixed size. AES128 encryption technique is used to encrypt service codes before sending to the LCs. The simulation results show that the LCs receive validated services from the SPs at an affordable cost. The results also depict that the participation rate of SPs is increased because of the incentive mechanism.