E-commerce, M-commerce: What’s next — IoT? Voice Commerce? Connected Devices?

The answer is … all of the above! Around the turn of the millennium, e-commerce was the hot topic. That’s before m-commerce, the new kid on the block, emerged and made its mark. This shift has seen corporations scramble to adjust and keep up with the pace of new technologies. However, while many companies are still playing catch-up with e-commerce and m-commerce, the next revolution is already around the corner as technology is showing no sign of slowing down.

With the emergence of IoT, APIs, Blockchain and Artificial Intelligence, we’re entering the age of smart everything: smart car, smart home, smart watches and more. We’ll examine the rise of new technologies and how they’re changing the payment processes landscape:

The rise of new technologies will change the way we shop

As a result of advances in technologies supporting IoT and rising consumer expectations, we are seeing an abundance of new digital opportunities emerging for companies. As a result, companies will have to adapt and join the connected commerce movement. Here is an overview of how new technologies are altering the way we shop:

In your car

Connected car shipments are expected to grow by 72%, from 48 million in 2018 to 83 million by 2020. Indeed, by 2020, virtually all new cars sold (98%) will be connected to the internet. This will turn vehicles into a new sales channel as “connected” cars deliver the ultimate UX and convenience for users. They enable you to pay for fuel without the need for a payment card, tell your car to order a pizza on the way home, cruise through toll booths as the payment card registered against your car is charged automatically, and even collect an order from a drive-thru restaurant with ease.

In your home

Voice command technology and smart appliances will combine to generate a fully “connected” home experience too. In fact, that first signs of this trend can already be observed today. According to a research by the Consumer Intelligence Research Partners, there are 53 million smart speakers in the US alone today, an increase of almost 90% compared to last year. With technologies like Alexa and Google Home, it’s now possible to automate household tasks simply by speaking to a device and giving vocal commands. This will radically change the way we shop. For instance, imagine discussing your grocery list with your family and simply telling Alexa what items to add to the basket before instructing it to make the purchase and deliver all your food to your house at 11 o’clock, just in time to cook lunch based on a recipe provided by your virtual assistant.

Anywhere you go

We’re already able to shop from almost anywhere thanks to our smartphones, but wearable devices like smartwatches could make this even easier. In fact, the installed base for wearable devices will more than double from less than 300M in 2017 to 650 million by 2020. Besides instant requests like ordering an Uber with a single tap on your wrist, wearables will also unlock a new range of possibilities for marketing. For instance, users could store all your loyalty cards on their smartwatch or make payments by just holding out their arm. Additionally, companies could team up with wearable producers or app providers to offer unique deals to customers: think Nike giving you 30% off new running shoes after you ran for 500 miles.

Without you noticing

As technology continues to make our lives easier, more and more purchases will come in the form of automatic orders based on real-time data. From washing machines ordering your washing materials to fridges ordering fresh milk and bread, you might never run out of daily essentials again. Sound futuristic? It’s fast becoming a reality. Artificial Intelligence is already bringing speed and simplicity to everyday tasks by placing orders based on historical purchases. By looking even further ahead, the weekly trip to your supermarket might even become obsolete as home devices, wearables and A.I analyze your consumption habits, learn your favourite dishes and monitor your health status to purchase what you want and need on their own.

How do payments fit into this?

As consumers will shop in different ways, payments will also need to adapt. Consumers are moving away from traditional and historical payment structures. That means organisations need to recognise this and offer consumers their payment method of choice in order to increase conversion rates. Here’s a brief outlook:

Payment infrastructure is transforming

Traditional payment methods such as credit cards powered by major schemes are under threat. With local APMs, open banking and push payments, buy now pay later, and Crypto payments rising in popularity, the established payment methods offered by the likes of VISA and Mastercard are being challenged. As an organisation looking to engage with changing consumer trends and behaviour… are you ready for these new payment methods?

New methods of authentication

With biometric authentication technologies such as facial scanning, voice recognition, fingerprint authentication and even finger vein technology, new and exciting methods of customer authentication are now available too. Besides a significant security increase in comparison to easily hackable passwords, biometric authentication also leads to a much improved and more convenient UX for customers. In fact, 70% of Americans state that biometrics are much easier to use than passwords. This is hardly a surprise as biometric authentication allows us to get rid of remembering new passwords, codes and usernames. Instead, the new technology enables users to simply swipe a finger, speak to a device or scan their face to unlock their profiles and start shopping.

What have we learned?

Commerce is in the process of the next digital revolution. Just as we saw a marked shift in recent years from online to mobile, the next evolution will be to voice commerce. IoT, voice commerce and connected applications will make shopping experiences even more frictionless for the consumer. As a consequence, organisations offering such solutions will be the winners and those that fail to engage with the incoming wave of technological transformation will fall behind, once again playing catch-up!