Amazon and P2P Payments

by Sarah Grotta 0

P2P

An article in The Motley Fool discussing the possible rollout of P2P payments on Amazon’s Alexa does a good job of summarizing the state of the market and the competitive landscape.  It also brings to light some of the shortcomings of the security around Alexa and dependence on voice as the sole point of identification:

The primary problem with using Alexa to facilitate P2P transactions is that the platform is not yet able to confirm an identity solely through customers’ voices, according to American Banker. But banking executives believe that technology is currently in the works and just months, not years, away. While Amazon’s Alexa, Alphabets Google Pay, and Apple Pay could all use second-factor authentication, a frictionless experience is what all three are pursuing. 

If a reliable voice authentication solution becomes available, banks will want to jump on this opportunity as well and integrate P2P plus other services seamlessly into voice-activated smart home devices.  Financial institutions could then offer a variety of frictionless transactions, not just P2P, with an emphasis on safely:

U.S. Bank vice president Gareth Gaston said that’s why he believes all three are working toward having voice become a form of identification verification. According to Gaston, as quoted by American Banker:

Amazon, Google, and Apple don’t want to create friction, the entire being of those companies is ease of use. My base assumption and faith is that they’re working on some form of voice authentication that we will be able to hook into, with or without the use of a third party vendor. … I do see it … in the not-too-distant future.

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

Read the quoted story here