One of the attractive aspects of digital banking to many of us is the automation and digitization of the payment of bills. The article hones in on how consumers are coming to expect the migration to digital payments to be taking place. The interesting aspect the article centers on the various authentication and verification methodologies that are either being employed, or are anticipated to be utilized.
Here’s a breakdown of how Americans see futuristic payments:
• Fifty percent of U.S. consumers say fingerprint technology will be used for authentication to pay and receive payments over the next decade. This is something we already see with iPhones and Apple Pay when people use their fingerprint to pay at stores and to pay for apps on their device.
• The survey found 35 percent of respondents see facial recognition as a vital authentication technology for making payments within the next ten years, while 32 percent of consumers say they trust the technology for securing e-payments. Some people already use iris scanning to make payments with Samsung Pay. However, facial recognition still needs some work for it to be completely secure.
• Viewpost found 31 percent of Americans see retinal scanning as a feasible technology for verifying payments, while 18 percent said they see themselves using voice control to make purchases within the next 10 years. People can already make purchases through voice control, like when telling an Amazon Alexa device to order something online.
Mercator Advisory Group recognizes the transition for regular consumer bill payment, such as utilities, subscriptions, and loan repayments has been underway for some time. We anticipate that authorization of payments on electronically received invoices will increasingly be tiered, with higher levels of identity verification and authentication taking place relative to the value of the transaction. We also anticipate the wider use of personal digital financial assistant software will increase with consumers to better capture, organize, review, and pay digital bills. Primary financial institutions will be instrumental in this transition for many consumers. We touch on these trends in our upcoming report, Banking as a Platform, publishing soon.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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