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With artificial intelligence (AI) being one of the most talked about technologies of 2023, consumers are gradually growing their understanding of its role in the payments process. Yet, continued education is needed before AI payments are propelled into the mainstream, a new report from Paysafe has revealed.
According to research from over 14,000 consumers commissioned by global payments platform Paysafe, just 14% of consumers globally said they are using AI-driven payments technology, with the remaining 86% expressing reservations about the use of AI.
While 10% expressed willingness to use AI-driven payments in the next two years, if they became more established, 17% said they are not comfortable using AI-driven payments technology at all. In addition, almost a quarter of consumers cite lack of knowledge around what safeguards are in place to reassure them that data isn’t being misused, and over a third said they don’t know enough about AI-driven payments technology to feel comfortable using it yet.
Rob Gatto, Chief Revenue Officer at Paysafe, said in a statement: “With the very immediate and significant impact of AI that we’ve seen in recent months, it’s understandable that consumers would have concerns about using such technology at the checkout. To encourage wider adoption, it is crucial to increase consumer awareness and understanding of AI-driven payment technologies and how they work.
“Payment service providers and merchants will need to educate users about the benefits of AI-driven payments, such as smoother experiences, convenience and security, in order to break down those barriers. Addressing privacy and security concerns head-on is essential, as is deepening consumer recognition of AI being used for risk-scoring, fraud detection, and personalisation.”
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Meanwhile, at least half of all consumers surveyed were able to identify their use of real-life examples like AI-powered checkouts, smart wallets or payment chatbots. When asked how aware they were about the use of AI by merchants, approximately one third of consumers indicated that they know a fair amount or a lot about applications like fraud detection, customer risk scoring, consumer trends and personalising the payment experience.
Elsewhere, the research found that when it comes to mixed reality such as AR (Augmented Reality) and VR (Virtual Reality) payments uptake is still low, so far, at just 3%. Concern about the technology’s security was minimal, however, with only 12% of consumers saying they wouldn’t use AR or VR to purchase goods because they don’t seem safe. Over double this number said they see themselves using VR or AR if these become more widely available and they learn more about them. Similarly, 26% of correspondents felt the same about paying for something in the Metaverse.
Gatto added: “When it comes to AR and VR payments, consumer awareness and comfort seems far less of a barrier to adoption. With the tech giants placing such significant focus on this area and new headset launches emerging in the market, we could see a rapid rise in mixed reality commerce once the technology is more widely available.”
