Voice-Based Payments Market is expected to reach US$ 14.37 billion by 2030

Voice-based Payments Market Analysis: Key Insights

According to our latest study on "Voice-based Payments Market Global and Regional Share, Trends, and Growth Opportunity Analysis – by Component, Enterprise Size, and Industry," the market was valued at US$ 6.47 billion in 2022 and is expected to reach US$ 14.37 billion by 2030; it is estimated to record a CAGR of 10.5% from 2022 to 2030. The voice-based payments market report emphasizes the key factors driving the market and showcases/exhibits/depicts the developments of prominent players. Increasing demand for contactless payments across the globe drives the market. However, an increase in security concerns and limited adoption of voice-based payments technology hinders the voice-based payments market growth.

The Asia Pacific voice-based payments market is segmented into China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific. Consumers in the region are increasingly adopting voice-based payments in their day-to-day operations. Furthermore, the strong efforts being made by various organizations across the Asia Pacific to encourage the usage of voice-based payments are projected to fuel the market growth during the forecast period. For instance, the Reserve Bank of India (RBI) has launched UPI 123Pay, a voice-based UPI or unique payments interface solution, to allow feature phone users to use the payment service. Users need to dial 6366 200 200 to use speech-based payments, and an interactive voice response (IVR) assists them in completing the specified transaction, such as transferring money or paying merchants. They need to enter their UPI PIN to authenticate their transaction, making the entire procedure digitally safe and simple.

Voice-Based Payments Market 

In terms of revenue, China is expected to hold a significant voice-based payments market share during the forecast period. China is the world's largest digital economy. The presence of a large population and thriving digital economy make the country an attractive market for voice-based payments providers. Many companies are expanding their operations due to the increased potential for growth and scalability in the market in China. For instance, Twilio Inc. offers Pay-as-you-go Voice pricing, an integrated programmable voice API. With the rapid growth of the market in Asia Pacific, the demand for voice-based payments technology in China continues to expand.

The growing adoption of contactless payments, rising technological advancements, and increasing penetration of smart devices are a few of the factors propelling the market growth in India. India has witnessed an exceptional increase in the adoption of voice-based payments solutions. The voice-based payments market in the country is primarily dominated by the BFSI, automotive, healthcare, government, and retail industries. Furthermore, the integration of voice-based payments systems with various platforms, such as cars and smart appliances, is driving the market. This integration allows for seamless and convenient voice-based transactions, expanding the reach and usability of voice-based payments, which are also gaining tremendous popularity in the Indian market. For instance, The National Payments Corporation of India (NPCI) is collaborating with AI4Bharat—an open-source language artificial intelligence (AI) center based at the Indian Institute of Technology (IIT), Madras—to develop a system for voice-based merchant payments and peer-to-peer transactions in local languages. The partnership aims to bridge the digital gap by making digital payments more accessible to feature phone users who speak different languages. The market report also includes growth prospects in light of current voice-based payments market trends and driving factors influencing the market.

Growing Adoption of Contactless Payments Fuels Voice-based Payments Market Growth

Major banks such as Barclays and Royal Bank of Canada have already started offering voice-enabled peer-to-peer payment services to their customers. Barclays enables its customers to make voice-based payments using Siri, the virtual assistant integrated into Apple's operating systems. Similarly, Google Assistant allows Google Pay users to make peer-to-peer payments through voice commands. Furthermore, there is a rise in the integration of voice-based payment systems in automobiles. Innovative services are being widely introduced to enable drivers to use voice assistants for various payment applications, such as paying for fuel or making restaurant reservations directly from their vehicles. For instance, in January 2021, Amazon announced the launch of Alexa Custom Assistant, a service that empowers device manufacturers and automakers to develop their digital assistants. Fiat Chrysler became the first automaker to utilize this service by creating a digital assistant for select vehicles. These developments in peer-to-peer voice-based payment solutions signify the growing importance of voice-enabled transactions in the business landscape, with banks and automobile manufacturers actively adopting the technology to enhance customer experiences and streamline payment processes. Thus, the growing adoption of contactless payments contributes to the growing voice-based payments market size.

Voice-based Payments Market: Segmental Overview

Based on component, the hardware segment is estimated/projected/anticipated to hold a significant voice-based payments market share by 2030. The demand for hardware that can support voice-based payments is expected to increase due to the growing popularity of voice-based payments worldwide. Companies worldwide are developing hardware with modern user interfaces to ensure a better customer experience, which is expected to fuel the segment growth. Voice-based payments are expected to become more mainstream in the coming years. Voice-enabled devices are expected to enhance existing technologies used in the manufacturing of hardware, thereby driving the segment growth.

Competitive Landscape and Key Developments

NCR Corporation, Amazon.com, Google LLC., PayPal, Vibepay, NCPI Corporation, PCI Pal, and Paysafe are among the prominent players profiled in the voice-based payments market report. The market leaders focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities. The voice-based payments market forecast can help stakeholders plan their growth strategies. As per the company press releases, below are a few recent key developments:

• 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 solution 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 such as Gujarati, Marathi, and Punjabi in the near future.
• In September 2021, VibePay, a social payment initiation service, has recently unveiled its voice-activated account-to-account payment feature in Europe. This new functionality allows VibePay users on iOS to conveniently make or request payments using their voice, specifically through Siri. The payments are executed instantly and involve no fees, enabling seamless transactions from one UK bank account to another. By integrating voice activation and eliminating transaction fees, VibePay aims to enhance the user experience and streamline the payment process for its customers.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com