Voice Payments: The future of Payment technology
25 Nov 2022
Dear Reader,
Voice payments is a process of paying, transferring and receiving money from individuals using voice command where you speak to a AI powered device such as speaker or smartphone for making payments. The process of setting up a voice payment account is very similar to that of paying through any online wallet. Once the payment app is opened on the device, the device will recognize your request, process the payment and respond with confirmation. This technology comes from the advancements made in artificial intelligence (AI) and machine learning (ML) where it utilizesNatural language processing(NLP), a branch of AI that allows computers to learn, understand, respond, and produce content in human languages. It works closely with voice recognition engines where human speech is converted from analog to digital form which is being used in Google Assistant, Amazon’s Alexa or Apple’s Siri.
According to a PWC report, global cashless payments will increase by 80% between 2020 and 2025, nearly tripling by the end of 2030.The global voice-based payments market was valued at USD 16.11 billion in 2021 and is expected to grow at a CAGR of 9.1% as per Polaris market research analysis.The rise in the popularity of voice payments is result of “24*7 connected” lifestyle of millennials who have access to different consumer services that save their time and are easy to use.
The Opportunities for Voice Payments
- Modern Customer Experience
- On-the-Go banking
- Retaining Customers
The Challenges for Voice Payments
- Security & Privacy
- Understanding different accents
- Point of service Integration
- Return on Investment
Voice payment technology is transforming the FinTech industry with convenience-based technology like voice payments and we will see a shift in the market which is driven by customer demands and adoption of AI in our daily lives with voice applications, Internet of Things (IoT) devices like speakers and voice assistants. Voice payments are expected to bring same kind of transformation in the payments industry that non cash payments did through UPI, Digital wallets and E-transactions.
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With Regards,
Akhil Handa
Chief Digital Officer
Bank of Baroda
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