Voice-based payment methods are making their mark in the digital finance landscape
Voice-based payment methods are making their mark in the digital finance landscape, with PhonePe, a digital payments company, leading the way by introducing voice-based alerts for transactions. This innovation allows users to initiate payments by speaking voice commands, adding a new layer of convenience to digital payments.
The Reserve Bank of India (RBI) has endorsed voice as a viable mode for payments, proposing measures to integrate voice-activated transactions into the unified payments interface (UPI). These measures include enabling “Conversational Payments” through AI-powered systems, introducing offline payments using NFC technology, and enhancing transaction limits. RBI Governor Shaktikanta Das emphasised that these initiatives aim to expand the reach and usage of digital payments in India.
According to a study by Polaris Market Research, the worldwide market for voice-based payments is projected to achieve a valuation of $34.02 billion by the year 2030. This growth is driven by the speed and simplicity that voice-based transactions offer. Prominent financial entities like Barclays and Royal Bank of Canada have initiated the provision of voice-activated peer-to-peer payment services. This technology is integrated with virtual assistants like Siri, Google Assistant, and Amazon”s Alexa, allowing users to make transactions using voice commands.
In India, voice-based transactions will cater to diverse populations, including those in rural areas with language limitations. PhonePe has introduced voice-based alerts for payments, aiding merchants by delivering transaction information in various languages. The integration of voice-based payment systems into vehicles is also contributing to the market”s growth. Voice assistants in cars allow drivers to pay for fuel, make restaurant reservations, and more, enhancing convenience while driving.
However, the rise of voice-based transactions also brings forth security challenges, particularly with the emergence of deep fake technology that can replicate voices convincingly. Fraudsters have used AI-based voice cloning to imitate friends and family members to deceive individuals. Regulators, technology companies, and the industry at large need to collaborate to develop strategies for safeguarding voice-based transactions against potential fraud.
As the adoption of voice-based financial transactions continues to expand, it”s crucial to ensure the security and protection of consumers. Striking a balance between convenience and security will be key to realising the full potential of voice-based payment methods without compromising users” safety.
