Multinational company, Amazon, has recently announced that they are to make their service Amazon Pay accessible to businesses and software developers in the US.
Multinational company, Amazon, has recently announced that they are to make Amazon Pay accessible to software developers and businesses. This is a very exciting announcement with the possibility of adding Alexa’s voice assistant to its products. The appeal to developers is obvious with the household brand name of Amazon involved in the process.
It’s a name that everyone knows and therefore there is an inherent trust value associated with it. If New ACME Co. were offering the same service to developers it’s not hard to guess which one they are going to choose.
Recent research has shown that around 8% of people surveyed in America have already used some form of voice control to transfer funds online. These include bill paying and handouts to friends and family.
Over the next few years, the volume of voice-activated transactions is expected to increase fourfold. This will mean that more than 30% of US citizens over the age of 18 will be using devices like Amazon Echo to transact business online with voice recognition systems. This equates to well over 75 million adults by the year 2022.
Amazon Echo forms part of the ever-increasing Smart Speaker market and they dominate this field with almost 70% of the business. However, they are not currently a major player when it comes to market share for online payments. Smart Speakers should see Amazon achieve a significant increase in this area in the coming years.
The latest survey carried out by Business Insider identified that over 40% of respondents were worried about the level of security currently available when using voice recognition systems. As users become more familiar with smart speakers their concerns are likely to decline and this could result in improvements to the EPS (earnings per share) for multinationals like Amazon.
We are not specifically tipping Amazon as a strong buy share but we are confident they will become a much bigger player in the online payments field than they are today. If costs can be controlled and the growth in transactions increases at the levels shown above it could be very lucrative for Amazon.