Voice technology is changing the way people are interacting with the world around them. From making search inquiries to paying bills, people are using speech technology for a variety of things, including payments. This rise of voice-based payment technology is creating new ground for a more seamless customer experience to emerge. Ease of use and security features are making call-and-pay or app-based voice payments a viable option for merchants and customers.
Research has found that voice-based payments are on a growth course. As mobile devices become more ingrained in people’s lives, AI-enhanced devices that use voice interaction for transactional banking and payment services have become sought-after channels for e-commerce payments. According to a PYMNTS’ report “The Bring-It-To-Me Economy: How Online Marketplaces and Aggregators Drive Omnichannel Commerce” roughly 6% of consumers made voice purchases in the prior year. According to the report, “89% of consumers who use their voice assistants to shop and pay also report buying at least one type of product online more now than they did last year, compared to 52% of non-users.”
So, what are voice-based payments? And how does your business benefit from it? Read on to know more.
What Are Voice-Based Payments and how do they work?
Voice payment is a device-based AI-powered digital payment solution that works via regular telephones and smartphones as a call-and-pay or app-based feature. A user only needs to speak on an IVR-enabled call-based payment system via their phone or mobile device to authorize and complete a transaction. They can also monitor their accounts and payment schedule with the aid of voice-based payment apps.
To setup a voice payment system, a user first links their credit/debit card to the device. Once this is done, they can easily make payments by prompting the device using voice commands. They do not need to log into the app or click any buttons to initiate payment. When the user issues a voice command, the app opens and initiates the payment. The user then authenticates the payment using a biometric scan or password/ PIN. The payment recipient gets a confirmation message once the payment has been credited to their account.
Voice payments can be used for:
- Peer-to-peer money transfers.
- E-commerce transactions where product is ordered online and payment is done via voice command on a mobile banking app.
- Reordering frequently bought products like groceries
- Paying recurring bills, for example credit card bills
Why Does Your Business Need Voice-Based Payments?
More and more people are using mobile devices for day-to-day transactional purposes. As such, it is important for retailers to create a customer experience that is relevant to their customers’ needs and preferences. Voice-based payment solutions are fast, safe, and easy to use. Hence, they are a great addition to the other payment methods you offer. Voice payments are a great choice for buyers because:
- They can complete a purchase quickly and easily.
- They can pay for goods and services without disclosing their sensitive payments data.
- They can make payments without the need for passwords, usernames,
For the merchant, voice payments allow you to:
- Accept payments from everyone, including people who do not have bank accounts.
- Receive payments without worrying about customers’ identities or other KYC details. All necessary verification details are taken care of by the payment service provider.
- Voice payments can be easily used by telesales, MOTO business, e-commerce merchants, or other SMBs.
So, should your business offer voice-based payments?
Yes, if you are keen to be at the top of the game in your industry. Because the idea is to offer a seamless shopping experience to consumers. Voice payments help you interact with consumers in a simple, hassle-free manner. At the same time, customers are saved from the need to share sensitive data or repeat information like PINs or passwords. Vendor and supplier payments, insurance claims, tax payments, and payroll funding – everything becomes simpler with the use of voice payments.
Concerns Regarding AI-Based Voice Payments
Despite the convenience, there are some concerns regarding the future of voice payments. Some relate to exclusivity and the inability to have multiple voice assistants on the same device, while others are more concerned with payment security or the difficulty in recognizing different accents. The EU has been investigating the competitive aspect of AI-powered voice assistants and the larger implication it can have on smaller businesses. These discussions around specific concerns will make way for more informed policy-making that will further aid the development of a pan-European digital economy.
The payments industry is seeing the rise of many evolutionary changes like the CBDC, e-wallet, and voice payments. The main objective of each is the creation of a next-gen customer experience. One that is safe, convenient, and reliable. Consumers are becoming more open to use voice assistance for their online experiences, including payments. This has led tech giants like Apple, Google, and Amazon to bring out enhancements in their voice interfaces. Banks and fintech players too are working towards offering more voice-enabled payment services. Voice payments could change the way payments are made in future. And as voice payment technology evolves, we can expect to see more innovation emerge in the future.
How Can Novalnet Help?
Based on your business goals, we can help you set up the right voice payment system so that you can start accepting payments quickly. Novalnet is a global PSP, trusted by Europe’s leading brands to handle their payments. Our state-of-the-art technologies and methods help you accept payments globally. From our instant payment plug-ins to our AI-based risk management tools, we have the resources to get your payments up and running in no time, and with zero hassle.
Reach out to us today to know more.
Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.