Here's why this Amazon executive says shopping with Alexa is 'going to be even more exciting than the launch of the iPhone'
- Amazon is betting its knowledge of its customers, combined with the booming adoption of smart speakers and voice assistants, is the future of transactions.
- "Trust takes decades to build and an instant to lose, and we're paranoid about that," says Amazon Pay's Patrick Gauthier.
"Alexa, are you the future?" Amazon certainly seems to think so.
As the future of financial services becomes increasingly democratized, Amazon is betting its knowledge of its customers, combined with the booming adoption of smart speakers and voice assistants, is the future of transactions.
Amazon Pay, launched in 2007, allows customers to purchase goods and services from websites and mobile apps using the addresses and payment methods stored in their Amazon account.
"In 10 years, we'll say what happened in this decade with voice and smart assistants is even more exciting than what happened between 2008 and 2018 with the launch of the iPhone," Patrick Gauthier, VP at Amazon Pay, said in an interview with Business Insider. "In those 10 years, we saw mobile commerce and banking come of age. Well, mark my words we will see a more exciting transition to smart assistant enabled moments that will make people's lives easier."
Trust issues
The biggest issue within the smart assistant ecosystem is getting users to accept making payments with their voice, particularly with no screen to provide product and transaction details. Gauthier notes that this is "trust issue" and says the company is wary of making mistakes in this area.
"Our key question is, how do we make sure we nurture trust with Alexa? Trust takes decades to build and an instant to lose and we're paranoid about that," he said.
However, Gauthier is bullish on the prospect of moving from a one-device world of mobile phones for payments to having smart assistants on multiple devices such as cars, phones, tablets, and even fridges, as potentially removing friction from a customer's experience.
Big market for voice shopping
Smart speakers or voice assistants are the fastest growing part of the consumer technology market, according to research firm eMarketer. While earlier this year OC&C Strategy Consultants indicated that the market for voice shopping could rise to be $40 billion-plus in 2022, up from about $2 billion across the US and UK.
Gauthier also said that Amazon's own research indicated 40% of customers believed a smart assistant would be part of their payments or shopping process in the next three years, as the popularity of Alexa, Google Home, and Apple's HomePod become more ubiquitous.
It's part of a transition from thinking of a commerce experience as purely payment and moving towards a more integrated model for customers. For example, the company's Amazon Go stores are checkout-free.
Amazon surveyed around 10,000 customers and found that almost half felt that the security of their payments information was their main concern, while another 34% indicated that they were worried smart assistants may not select the correct product.
And the biggest issue?
"With smart assistants, it's not all about the purchase," Gauthier said. "The No. 1 thing people want to know is: 'Where is my stuff?'"