As the digital banking race heats up, voice payments pose an addressable opportunity for banks, payment providers, and financial institutions. Read on to know how voice-based payments will dominate the financial services ecosystem.

77.9 Million consumers in the US are expected to make payments using voice assistants or smart speakers by 2022.

Digital voice assistants like Apple’s Siri and Amazon’s Alexa have become a mainstream phenomenon owing to the massive advancements and adoption of voice-related technology.

From checking the weather, streaming music to enabling home automation – these voice assistants are slowly taking over our households, and letting us take command with our voice!

The mass adoption of these voice bots is also fuelling the shift towards integration within the payments and banking landscape – something we couldn’t have fathomed a decade ago.

Will voice-based payments dominate the financial services ecosystem in the coming years? Time for a reality check.

“Alexa, send money to John via Google Pay”

Being able to make payments using just your voice, without having to log into your bank’s website or key in your password every single time – is, sure enough, a testament to our hyper-connected lifestyles.

Source: Business Insider

For all of us in the financial services industry, take note: this booming voice payments technology is not only a path-breaking approach to handling money but with large players like Apple Pay and Venmo stepping in, voice payments are only set to evolve.

Voice assistants are making routine banking tasks like money transfers, bill payments, and card activations quick and absolutely seamless.

Here’s the thing – the voice payments experience is not about easy accessibility and convenience alone. Voice-enabled payments bring in new, cost-saving opportunities of integration with digital payment touchpoints, promising to simplify and revolutionize the financial services industry.

Patrick Gauthier, VP at Amazon Pay says that voice payments will usher in a “new era in commerce”, making it the future of customer experience in the retail space. He goes on to say –

“It is akin to what happened with mobile maybe 10 years ago or even with e-commerce 20 years ago.”

Unlocking the opportunity for banks and financial institutions

As the digital banking race heats up, voice payments pose an addressable opportunity for banks, payment providers, and financial institutions.

Let’s quickly run by a few ways in which this ‘convenience-based technology’ positions the financial sector for better days ahead:

Reducing the risk factor: Voice payments enable biometric authentication and are considered to be as unique as fingerprints. This multi-factor authentication capability minimizes risk to a great extent.

Manage KYC better: Talking about customer security, voice commands offer banks and financial institutions more context about the customer. This reduces the chances of fraud and enables them to track and maintain customer information easily.

Say hello to speed, ease, and convenience: Making payments using just your voice is extremely simple, not to mention gratifying on many levels. Integrating voice-based payments to existing banking solutions paves the way for a next-gen payments experience.

Delight customers with the latest in tech: J.P. Morgan, Mastercard, Santander, and Barclays are just a few of the many institutions that have introduced voice-based payments to power their customers in transferring funds, paying credit card bills, making peer-to-peer payments, and the likes.

Voice payments, the next big thing to disrupt the FinTech industry

The volume of shopping done via voice-enabled devices is expected to skyrocket and touch $40 Billion by 2022.

While there are challenges in terms of improving security and recognizing different accents, FinTechs are at the forefront of transforming the payments landscape with voice assistants and smart speakers.

At the moment, the voice payments experience is low-hanging fruit, acting as a differentiating feature that will help challenger banks and new entrants — reap early benefits and get a strong foothold in the market.

Follow me on LinkedIn to get the latest updates and stay in the know about the latest in payments tech.

T M Praveen is a highly accomplished global payments leader with over 20 years of experience. A veteran in the payments industry, Praveen has immense wealth of insights to share in payments innovations, emerging technologies, FinTech, and financial services.

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