Increasing Demand for Contactless Payments to Fuel Voice-based Payments Market Growth During Forecast Period

With rising requirements for convenience and efficiency, the demand for contactless payments has increased tremendously. As the adoption of digital payment methods continues to surge, contactless payment is a new method that revolutionizes the way consumers transact voice-based payments. Contactless payments have witnessed a remarkable surge in popularity over the past few years. With the advent of near-field communication (NFC) technology, consumers can make secure payments by simply selecting that option on their smartphones or contactless cards on payment terminals. This technology has not only expedited transaction times but has also reduced the need for physical contact, enhancing convenience and hygiene, especially after the emergence of the COVID-19 pandemic. Voice-based payments, on the other hand, take convenience to a whole new level. Powered by artificial intelligence (AI) and natural language processing (NLP), voice assistants such as Siri, Google Assistant, and Amazon Alexa have enabled users to initiate transactions using just their voice commands. This hands-free approach eliminates the need for physical interaction with payment terminals, cards, or smartphones, making it an appealing option for those seeking a seamless and effortless payment experience.

Furthermore, the growth of the voice-based payments market is attributed to the increasing accessibility and growing adoption of voice assistants. With the increased use of smart speakers, smartphones, and other voice-enabled devices in households, more consumers have access to voice assistants and are comfortable using them for various tasks, including making payments. This widespread adoption has paved the way for the integration of voice-based payment capabilities into these devices. The future of voice-based payments appears promising as advancements in AI and NLP continue to enhance the accuracy and efficiency of voice assistants. Integration with various platforms, including e-commerce websites, mobile applications, and in-store payment terminals, will further drive the adoption of voice-based payments. Thus, increasing demand for contactless payments is likely to fuel the voice-based payments market growth during the forecast period.

Voice-based Payments Market: Industry Overview

The voice-based payments market is categorized on the basis of component, enterprise size, industry, and geography. Based on component, the market is bifurcated into hardware and software. In terms of enterprise size, the voice-based payments market is bifurcated into large enterprises and small and medium-sized enterprises. Based on industry, the market is segmented into BFSI, automotive, healthcare, retail, government, and others. The voice-based payments market, based on geography, is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

In 2022, North America led the global voice-based payments market with a substantial revenue share, followed by Europe and Asia Pacific. The voice-based payments market in North America is segmented into the US, Canada, and Mexico. The US is considered one of the major technological forefront countries with high technological penetration. In addition, the rise in smart devices, such as smart TVs, smartphones, and tablets, has contributed to the expansion of the voice-based payments market. For instance, in the US, ~63.43 million houses are actively employing smart home devices as of 2023. Furthermore, the region has a robust ecosystem of innovative tech companies, financial institutions, and payment solution providers. These entities have been at the forefront of developing and deploying voice-enabled technologies, such as artificial intelligence (AI) and natural language processing (NLP), to facilitate seamless voice-based transactions. Another factor contributing to North America’s dominance in the market is the growing number of collaborations between industry players. Financial institutions, technology companies, and payment service providers have joined forces to develop robust voice-based payment solutions that meet consumers’ demands for security, convenience, and reliability. For instance, in September 2021, Google introduced voice-enabled payment for gas and announced a partnership with Honda as part of a series of upgrades. Google Assistant enables drivers to use voice commands to make purchases using Google Pay at over 32,500 gas stations in the US, including Conoco, 76, Phillips 66, Exxon, and Mobil. The company has also announced its plan to expand this feature by including additional stations and franchise names in the near future. These collaborations have led to the integration of voice-based payment capabilities into various devices and platforms, ranging from smartphones to smart speakers, further fueling the market growth.

Voice-based Payments Market: Competitive Landscape and Key Developments

NCR Corporation; Amazon.com; Google LLC.; PayPal; Vibepay; Huawei Technologies Co., Ltd.; PCI Pal; and Paysafe are among the leading market players profiled in the voice-based payments market report. Several other essential market players were analyzed for a holistic view of the market and its ecosystem. The report provides detailed market insights, which help the key players strategize their market growth. A few developments are mentioned below:

• In September 2023, PCI Pal, a leading global provider of secure payment solutions, unveiled the latest advancements in Automatic Speech Recognition (ASR) technology for their suite of PCI-compliant payment solutions. This includes enhancements to their well-regarded offerings, such as PCI Pal Agent Assist and IVR Payments. The release of these next-generation ASR improvements underscores PCI Pal’s commitment to providing cutting-edge solutions that ensure secure and compliant payment processing.

• In September 2022, ToneTag introduced VoiceSe UPI Payments in vernacular languages on feature phones. This service allows users to make voice-based digital payments in languages such as Hindi, Tamil, Telugu, Malayalam, Kannada, and Bengali. The company plans to expand the availability of this voice-based payment system to other languages like Gujarati, Marathi, and Punjabi in the near future.