This represents a 100% increase from this year’s projection for spend on physical and digital goods.
The new study, Mobile & Online Remote Payments for Digital & Physical Goods: Opportunities & Forecasts 2016-2021 from Juniper Research claim that rising smartphone use in digital retail was the underlying cause for stakeholder development in area such as: bots, natural language processing, disruption at the payment gateway and understanding shopper intent through conversation.
Results suggested that where retailers deployed conversational interfaces, such as bots and natural language search, they would be able to far better understand the consumer’s intent. For example, the North Face has developed an intelligent digital assistant to help consumers choose the appropriate product. Meanwhile, Facebook, Google and storefronts such as Etsy are investing heavily in similar solutions.
Also, substantial activity is taking place to improve the experience at the point of payment, according to the research. Disruptive players are simplifying the consumer experience by challenging tried-and-tested but frustrating checkouts. For example, Klarna eschews card number entry and usernames and passwords. Instead, shoppers can enter simple-to-remember information, such as their email address and postcode.
Meanwhile, the research examined how machine learning is used to minimise the chance of payment rejection. Adyen, for example, are using the technology to avoid payment rejection due to bad formatting or misrouted connections to the acquiring bank.
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