Payments

Daily Review: How Conversational Commerce Forms New Purchasing Habits

MEDICIGlobal Head of Content

Behavioral data is the most precious resource and probably the most unfair advantage a business can have. With Europe hosting the leading behaviometrics-focused businesses, no wonder studies are turning to understanding how user/consumer behavior can translate into an opportunity.

Pick #1. Conversational Commerce: A New Opportunity for Card Payments

Among those open to using conversational agents in purchases, 37% would prefer to use a card previously set up with the merchant (i.e., a card on file) and 21% would prefer to add card information at the time of checkout. Conversational transactions are likely to create habits and include repeat purchases that are streamlined by using stored payment information.

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Source: Conversational commerce: A new opportunity for card payments, Mastercard & Mercator Advisory Group

Voice Agents: The ubiquity of smartphones that have integrated voice-based agents has resulted in over half of the people surveyed indicating they use voice NLP on smartphones, one-third of them doing so daily or more. The survey respondents commonly use voice controls on a variety of other voice-enabled electronics as well. Those who own dedicated devices like smart speakers show the highest frequency of use: 50% engage with the voice agent daily. Hands-free convenience also seems to play a role in the vehicle with 4 in 10 connected car users employing this voice feature daily or more frequently.

Text Agents: Text agents are most commonly used via smartphone – 34% use a smartphone to engage a text-based chatbot, 13% do so daily or more frequently. Usage of text chatbots via computer is nearly as high. This demonstrates that consumers are willing to engage in the text-based interface through a variety of digital channels.

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Source: Conversational commerce: A new opportunity for card payments, Mastercard & Mercator Advisory Group

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Pick #2. Machine Learning & Behavioral Biometrics: A Match Made in Heaven

In the world of behavioral biometrics, machine learning, deep learning, and artificial intelligence are all hand-in-glove. Behavioral biometrics identifies people by how they interact with devices and online applications. As opposed to something that someone has like a device, token or a static attribute like a fingerprint or a name, behavioral biometrics is a dynamic modality that is completely passive and works in the background, making it impossible to copy or steal.

Today’s behavioral biometric technologies can capture more than 2,000 parameters from a mobile device, including the way a person holds the phone, scrolls, toggles between fields, the pressure they use when they type, and how they respond to different stimuli that are presented in online applications. Behavioral biometrics is used primarily for preventing the use of stolen or synthetic identities in applying for credit online and in preventing account takeovers once a user is logged into a session.

Machine learning is used in all facets of behavioral biometrics. It’s able to learn from human behavior and continuously improve user profiles that can be used to validate sessions or transactions. Machine learning helps to break through the clutter of the various signals and find the consistencies in the behavioral patterns over time, even with the changes.

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Pick #3. ING Further Invests in Payments Business with Acquisition of Majority Stake in Payvision

ING has reached an agreement to acquire a 75% stake in an international omnichannel payments service provider Payvision. Payvision has a total value of EUR 360 million. The transaction will enable ING to strengthen its footprint in omnichannel payments services and expand its merchant services for its business customers, especially in the fast-growing e-commerce segment.

Payvision’s platform facilitates more than 80 payment methods, including Maestro, Visa, iDEAL, Alipay, JCB, and UnionPay across more than 150 currencies. Consumers can benefit from increased choice in payment solutions and a convenient, seamless, and uniform shopping experience.

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Pick #4. Swiss Davos to Launch Alipay for Chinese Visitors

Alipay will soon be made available to most local businesses in the Swiss town of Davos, thanks to a partnership with SIX Payment Services, a pan-Europe payment service provider based in Switzerland. Restaurants, bars, supermarkets, and hotels in Davos will be offering Alipay, all with merchant information available in Alipay’s in-app overseas traveler service platform.

SIX Payment Services currently supports bank card transactions via point-of-sale (POS) systems at over 250 merchants in Davos. With the new agreement in place, these Swiss merchants will soon be able to serve Chinese tourists by offering e-payments in RMB via Alipay. China is the fourth-largest source of tourists to Switzerland and the two nations experienced over 1.2 million two-way visits between China and Switzerland in 2017, up 12% YoY.

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Elena Mesropyan

MEDICIGlobal Head of Content

Global Head of Content, MEDICI

Elena is a research professional with a background in social sciences and extensive experience in consumer behavior studies and marketing analytics. She is passionate about technologies enabling financial inclusion for underprivileged and vulnerable groups of the population around the world.