An inside look at the future of payments | CNBC Reports

Summary

The payments industry is embracing biometrics as a secure and convenient alternative to traditional passwords. With the ability to authenticate transactions using facial recognition, voice, fingerprint, or even heartbeat, consumers can now make purchases effortlessly. The rise of voice assistants like Amazon Echo and Google Home has popularized voice payments, which are expected to reach a $40 billion market by 2022. Despite concerns about security, biometrics are seen as enhancing safety, with 93% of consumers preferring them over passwords, signaling a potential mainstream adoption of voice payments.

Takeaways

• 📱 The future of payments is shifting from gadgets to biometrics, emphasizing the use of personal characteristics like face, voice, and fingerprint for authentication.
• 👋 Biometric payment methods are becoming more prevalent due to their convenience and inherent security, as they are always with the user and cannot be forgotten.
• 🔊 Voice payments are facilitated by home assistants like Amazon Echo and Google Home, making it possible to make purchases with simple voice commands.
• 🏠 The ease of voice payments allows consumers to shop without leaving their home or even getting up from the sofa, enhancing convenience.
• 📈 The voice shopping market is predicted to grow significantly, from $2 billion to an estimated $40 billion by 2022, indicating a substantial increase in adoption.
• 🏆 Major tech companies like Amazon, Google, and Microsoft are dominating the voice payment market, highlighting the importance of securing a partnership with these platforms.
• 🔒 Despite concerns about potential theft or money laundering, biometrics are viewed by some experts as a solution to enhance payment security compared to traditional passwords.
• 🔢 The most common password, '123456', is easily compromised, whereas biometrics offer a more secure alternative for authentication.
• 📊 A recent survey revealed that 93% of consumers prefer biometrics over traditional passwords, suggesting a strong consumer preference for the new technology.
• 🤔 There are still obstacles to overcome with voice payments, such as the risk of unauthorized purchases if someone else uses the user's voice.
• 🌐 The script invites viewers to consider the future of payments and whether they would use their voice to make purchases, encouraging audience engagement.

Q & A

What was previously considered the future of payments?

The future of payments used to be focused on the next big gadget, such as a watch, a ring, or a phone.

What is the current major trend in the payments industry mentioned in the script?

The current major trend in the payments industry is biometrics, which allows for payments using face, voice, fingerprint, or even heartbeat recognition.

How does the use of biometrics simplify the payment process?

Biometrics simplifies the payment process by eliminating the need for a pin or password, allowing users to authenticate and make payments using their unique physical or behavioral characteristics.

What role do home assistants play in the adoption of voice payments?

Home assistants like Amazon Echo or Google Home are making voice payments a fast and easy way to make purchases without leaving the house, by teaching computers to understand and match a user's voice to their identity.

What are the most common uses for voice assistants according to the script?

The most common uses for voice assistants are to seek information, like news or weather, and to play music and videos. However, retail is becoming a bigger function with an increasing number of consumers using voice to buy products.

What is the expected growth of the voice shopping market by 2022?

The voice shopping market is expected to grow to $40 billion in 2022, up significantly from $2 billion at the time of the script.

Which companies currently dominate the voice shopping market?

The voice shopping market is currently dominated by a few big players, including Amazon, Google, and Microsoft.

What are some of the security concerns associated with voice payments?

Security concerns with voice payments include the potential for others to use a person's voice to make unauthorized purchases, which could be used for theft or money laundering.

How do biometrics address the security concerns in payments?

Biometrics are seen as a solution to making payments safer by providing a more secure form of authentication compared to traditional passwords, which are often easily guessed or hacked.

What does the survey mentioned in the script indicate about consumer preferences for biometrics?

The survey indicates that 93% of consumers prefer biometrics over traditional passwords, suggesting a strong consumer preference for the convenience and security of biometric authentication.

What is the potential future of voice payments as suggested by the script?

The script suggests that voice payments may go mainstream in the near future, given the growing consumer preference for biometrics and the increasing adoption of voice assistants for shopping.