Voice technology is significantly altering how people interact with their electronics, frequently in unexpected ways. People utilize speech capabilities for various things, from finding nearby gas stations or grocery stores to inquiring how many milliliters are in a cup. Utilizing a voice-based payments system, people with feature phones can access UPI and make payments without using the internet, bringing digital payments to new heights. Users may conduct financial transactions efficiently with speech technology, which uses IVR (interactive voice response) as a voice assistant and is backed by AI and machine learning.
A voice payment account can be created in a manner akin to how an electronic wallet payment account is created. In either case, the user must first connect their bank account or credit/debit card to their devices. The typical wallet scenario calls for the user to launch the app, manually enter the recipient and amount, and then hit the OK button to complete the transaction. In comparison, customers can use voice payments by speaking to their devices. These payment options are more widespread.
Cash and credit cards are becoming less prevalent as more individuals buy things using their phones. People increasingly use their phones instead of wallets to pay for food, beverages, groceries, apparel, and gas. Financial institutions and retailers are expected to use voice-based payments to readily access customer information and understand consumer behavior, which will cause the market to grow. Mobile payment businesses like Zelle, PayPal, and Venmo have started using voice-activated controls for their users to perform banking and financial chores. Traditional banks like Wells Fargo also incorporate conversational interfaces into their mobile banking apps to simplify consumers' access to all banking services.
The acceptance of voice-based payments for online transactions is optimistic for market growth. Voice-based payments are progressively displacing traditional credit card transactions since they require the customer to speak into a speaker on their smartphone to approve a purchase. The customer can submit the transaction details and pick "pay with voice" online shopping. Since it eliminates the need to enter credit card information or sign up for other apps, this method is gaining popularity. This method makes the consumer's life even more convenient. Customers can use voice technology in various circumstances since they are accustomed to it. Customers are progressively using their smartphones more frequently via voice, whether to interact with their chosen merchant, pay someone with money, or put app orders for groceries. These elements encourage the market for voice-based payments to grow.
Voice technologies are being employed by industries ranging from banking to eCommerce with every new piece of software released. Voice-enabled virtual assistants are becoming increasingly common, and the banking sector is one of its biggest customers. Since more individuals are using smartphones for financial services, voice payments are gradually taking the place of mobile tapping. Personalization is mainly what drives voice-enabled technologies. Banks and FinTech companies can offer tailored services with a particular brand touch by using voice interactions to reveal relevant information about consumer expectations and behavior. FinTech pioneers are helping banks and other financial institutions have a voice online. This offers the market for voice-based payments an enormous opportunity in the future years.
North America is expected to advance significantly and command the highest market share during the forecast period. This can be attributed to significant players in the voice-based payments industry and their use of cutting-edge technology across various industries. The growing acceptance of contactless payments in North America is projected to help the regional market growth. According to MasterCard Contactless Consumer Polling data, more than half of American consumers utilize at least one contactless payment method. These customers have been using cashless transactions frequently. Additionally, the need for voice recognition-based payment systems has increased due to smartphones' rising popularity. Payments Canada reports that the first iteration of Lynx, Canada's brand-new high-value payment system, went on sale in September 2021. Lynx will replace the old Large Value Transfer System (LVTS) in Canada, which processed high-value payments. These developments are anticipated to expand the voice-payments industry in the region.
Asia Pacific will expand at the fastest growing CAGR over the forecast period. This is attributed to the rising adoption of voice-based payment across various industries, the increased government emphasis on advancing technology adoption, and the increasing demand for voice-based consumer electronics products like laptops, smartphones, and smartwatches, among others. The growth can also be attributed to countries like China, India, and Japan becoming more aware of the benefits of voice-based payments. It is also projected that the sector will grow due to the vigorous efforts undertaken by various organizations in the Asia Pacific area to promote the adoption of voice-based payments. As an illustration, the National Payments Corporation of India (NPCI) announced that starting in July 2021, it would launch voice-based payments services for feature phones in India. The Aadhaar Enabled Payment System and Unified Payments Interface are just two of the digital payment systems that NPCI has previously developed.