Technology has developed in leaps and bounds across the globe in different ways. Humans have found no time and joy to communicate with other humans rather they find it interesting to communicate with machines. Probably the machines are powered by Artificial Intelligence which has the capacity and capability to understand human expectations to act accordingly. In this development phase, artificial intelligence has dominated financial transactions. Voice payment is an emerging trend creating a new revolution in the FinTech industry. Query instructions of humans are well understood as it is powered by Machine Learning. This helps in understanding human instructions in any language with the help of NLP (Neural Language Processing). Moreover, voice assistance applications are now available on all smartphones and laptops. Humans find it very easy and comfortable to perform several transactions. Moreover, the Covid-19 pandemic has accelerated the use of voice payments due to the fear of the spread of the virus when a person uses figures to perform transactions in a public system such as an ATM. All these have created a digital revolution in the digital economy and have several outcomes.
How voice payment facilitates businesses and customers
The report by Prince Water and Coopers mentions that the world population will find it very comfortable to use voice payments. It is also predicted that almost 80% of the payment across the globe will be cashless by the year 2025. Maybe by the year 2030, the world will witness 50% of transactions powered by voice. Thus, there is going to be a huge shift in the payment structure across the globe. This shift will automatically motivate all the business units and the customers to perform transactions through voice. At present, several payment wallets allow their customers to perform transactions powered by voice. Every business unit would be ready to upgrade according to the market trend and expectations and the same with the customers. Customers will enjoy voice-based payments mainly due to high security and they do not have to depend on humans to facilitate transactions. The following diagram (Figure No: 1.0) will explain the various uses of voice payment facilitating business organizations.
Voice Payment Statistics and Facts:
As per BI Intelligence, MPW report, Voice Payment adoption rate in the US with a forecast from 2018 to 2022, we can witness a gradual and steady increase in voice payment adoption starting from 8 percent in 2017, to 10 percent in 2018 which goes up to 31 percent in the year 2022. This is a clear indication of people’s acceptance of the voice payment system. This is not the case for a developed economy, but also emerging economies are extremely ready to accept and use voice payment mechanisms. Another source (Business Insider – Voice Payment report 2017) reveals that voice banking will be one of the Fintech giants to create future impact. Day by Day increased usage of Voice Assistance in developed countries like the US, European Union, Germany, etc., emanates the fact that voice banking is transforming the fintech industry. Voice banking will also turn out to be cost-effective by cutting down the cost by up to $ 3 billion by rerouting basic requests.
Advantages of Voice Payment
Convenience Based Technology
In the modern world, modern technology lays its emphasis on reducing cumbersome work and ease in mankind with any processes. Process reengineering is an immensely growing technological upgradation, which is preferred not by the corporate but also by the public. The voice-based payment system is one of the process reengineering which simplifies the day-to-day routine of the people however the advent of covid-19 widespread the usage of online payment mechanisms throughout the globe. Even developing and undeveloped countries that had hesitation in using the online mode of payment adopted the system due to its convenience and realizing its safety. Even a voice-based payment system is also a convenient based technology, for sure reaches a mass of people.
Secure Authentication
As an individual everyone may need convenience-based technology but surely not on the cost of security. The voice-based payment system uses Natural Language Processing (NLP)which is an advanced feature in AI-based technology as a core feature of several voice assistants like Google, Alexa, Siri can be used by banks in developing secure voice payment systems. Every individual’s voice has unique characteristics that are recognized by AI as voice print whenever a transaction is initiated through a voice-based payment mechanism it matches with voice print & then proceeds for approval, which can be supported further through iris scan, face recognition, fingerprint and so on as per the need & security system of banks.
Overcome the Threat of Weak password
Fraud reduction is extensively possible in voice payment systems through the unique characterization of Voice. Recreating the individual’s voice with a 100% match is not possible, however in the traditional online payment system which is dependent on passwords and card numbers that is easy to be stolen. Most of the customers have a weak passcode like their name, date of birth, mobile number, etc which can be easily cracked. Voice-based payment system as an attractive new technology not only overcomes the threat of weak passcode but also attracts a new customer base towards the bank on its successful implementation.
Accent Recognition
One of the reasons to not rely on the voice-based mechanism by non – UK and US-based customers is their language accent. This was identified as a limiting factor by voice recognition software developers and restructured intellectual voice assistance with the capability to identify, understand, and translate / transcript almost all varied accents through an upgraded NLP system.
Boon to visually impaired
Financial independence is the birth right of mankind. All online banking transactions or payment mechanisms highly rely on password and OTP which makes visually challenged people rely on a third person for their financial transactions. As a revolutionary technology voice-based payment system will be a lifesaver for the visually impaired.
Working model of the voice payment: a conceptual explanation
Artificial intelligence (AI) and machine learning have led to the development of the voice payment technologies used today. Today’s voice assistants make use of speech recognition technologies to better comprehend the instructions of the person they are listening to. They capture and store this data, and then construct profiles that aid the assistant in recognizing the user’s voice for subsequent inquiries with greater precision. A voice payment is an act of speaking to an artificial intelligence device, such as a smart speaker or smartphone, to make a payment or purchase a product or service. Using AI technology, it can identify speech requests, act on them, and provide a confirmation response. Machine learning, natural language processing, robotics, and computer vision are the four key AI components that make this possible. Each of these components contributes to the capacity of machines to react and reason. The use of artificial intelligence, notably natural language processing, which enables AI to speak with humans, enables voice payments. This technical combination is known as conversational AI, and it enables the development of chatbot technology. This technology is used by certain contact centres and websites to automate customer support inquiries. Digital assistants such as Google Assistant, Alexa, and Apple’s Siri could enable a payment if they are linked to the parties engaged in the transaction. The Internet of Things (IoT) enables the usage of voice payments in several other locations.
Drawbacks of voice payment
Even while voice assistants interact with their servers over encrypted connections, there is still worry about privacy and security in general, as well as voice payments as an emerging use case. Listening to talks to uncover faults and enhance machine learning models for voice assistants is a regular and essential technique. In the last several years, media coverage revealed that conversations were being recorded, leading to a rise in consumer privacy concerns. In addition, a transfer can be initiated by a party other than the permitted one. Voice hack is a subtype of identity theft in which an attacker acquires an audio recording of a user’s voice and uses it to gain access to their information. Smart home speakers are a potential treasure trove of audio recordings that might be used for voice hacking. AI might be programmed to behave in an inaccurate or harmful way if placed in the wrong hands. There is a possibility that, if coded appropriately, the voice assistant might be used to steal money or commit fraud by accessing a user’s information. This contributes to the overall ethical issues behind AI technology. Moreover, since AI is just a utility, it may be utilized to commit fraud. Imagine if fraudsters have built an artificial intelligence to steal a few dollars disguised as a charge from each P2P transaction it executes. These are just two instances, but they demonstrate the possible risks associated with the usage of AI.
Conclusion:
Customers across the world are interested in using voice assistance software for their daily routine operations. In addition, even the business units use and depend on these software applications for various uses such as: Easy payment, avoiding default in payment, being more transparent in the payment process, for secured documentation etc. Hence, this has become a boon for customers and business units. Moreover, there is a growth in digitalization with Artificial Intelligence, Business Intelligence etc. Even the up-coming generations are more technically skilled to use various digital platforms and tools. Gen Alpha have started to use these tools and options.
Even the youngest generation is more happy to use these verbal requests. Most young generation and middle-aged population prefer online and mobile banking for their financial transactions. Moreover, advanced technology contribution from the tech giants such as Apple, Google, and Amazon who made a perfect blend of NLP – AI technology in voice assistance has widened the doors for voice banking. There is no doubt with sound technology backups, surely voice payment systems will be the inevitable part of the new normal.
The rapidly spreading digital dependence has made voice payments a reality among smartphone users. Almost every smartphone is equipped with an AI assistant that could process commands based on the user’s voice. Similarly, the use of AI speakers such as Alexa- Echo or google Assistant is also gaining prominence among the public. With all these digital advancements, the widespread use of voice payments is not very far off. But the question of whether the technology has matured enough to reliably transfer funds through AI needs to be answered. Several privacy concerns and security issues need to be addressed before using AI as a reliable channel for voice payments. Keeping all this in mind it is quite evident that voice payment has brought a new revolution in the payment system. This indirectly enhances all the financial technologies and has helped multiple stakeholders in various ways. The up-coming days will witness a new phase in socio-economic up-gradation and will also help in achieving the SDG (Sustainable Development Goals).
