THE CONVERSATIONAL COMMERCE REPORT: Chatbots’ impact on the payments ecosystem and how merchants can capitalize on them

economy

BI Intelligence

This is a preview of a research report from BI Intelligence, Business Insider’s premium research service. To learn more about BI Intelligence, click here.

To keep pace with the ongoing shift toward e- and m-commerce, retailers are turning to chat apps, where smartphone users spend considerable time each day.

One way they’ve been accessing consumers on these platforms is through chatbots, or software programs that use business-to-consumer (B2C) text-based messaging as an interface through which customers can communicate with merchants in a question-and-answer format. 

For merchants, these offerings are valuable because sales increase as customers communicate with and shop from their brand on more channels. But there’s considerable friction — in chat apps, payments offerings are limited, which means users who might be browsing in a messaging app will still be redirected to another app or the mobile web to complete a purchase. 

This is creating an opportunity for payments processors and card networks, which are beginning to partner with merchants to capture potential volume from chat apps. And as the hype increases, other payments firms, like remittance providers and banks are also entering the game, in the hopes of increasing user engagement or attracting new types of clients.

There’s a long road ahead: We’re just at the beginning of what’s likely to be a long adoption cycle, with payments firms only starting to dip their toes into the space. But improvements in the ecosystem, combined with rising consumer appetite for these services and increasing trust, will eventually lead to moderate gains in usage that open up a massive volume opportunity for Western firms.

BI Intelligence, Business Insider’s premium research service, has put together a detailed report on chatbots’ role in the payments ecosystem.

Here are some key takeaways from the report:

  • Chat apps are the next frontier for digital commerce, but without payments functionality, the opportunity is extremely limited. Customers can — and do — ask for support, take advantage of deals, and browse many stores within chat apps. But when it comes time to pay, users have to switch to another app or the mobile web — a turnoff that could hinder adoption and lower conversion rates.
  • Most payments firms are teaming up with retailers, often those they already count as clients, to enable customers to make payments using their mobile wallets or processing features within chat apps. That’s allowing retailers to get to the space faster while opening a revenue opportunity for payments players. Others are taking less direct approaches, working to increase consumer engagement in a way that promotes more spending offline.
  • We’re at the beginning of an adoption curve, so digital payments providers shouldn’t expect massive success quickly, but in the long run, it’s likely to be a large market. As firms work to grow consumer awareness and improve the experience, the technology will eventually become mainstream, which makes getting in early and becoming established worthwhile. 

In full, the report:

  • Explains why the chat app is the next frontier for commerce, and why payments functionality is a linchpin of that success.
  • Details different types of chat app payments and their potential use cases.
  • Evaluates the hurdles that could prevent consumers from using chatbot payments.
  • Suggests ways firms can overcome these hurdles and begin seeing adoption.
  • Sizes the potential long-run market for chatbot payments in the West.

Interested in getting the full report? Here are two ways to access it:

  • Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND more than 250 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> Learn More Now
  • Purchase and download the report from our research store. >> Purchase & Download Now

  • Комментариев нет

    Добавить комментарий

    Этот сайт использует Akismet для борьбы со спамом. Узнайте как обрабатываются ваши данные комментариев.

    economy
    11 myths about lice you need to stop believing

    Cushy Spa/Flickr Most people would be very happy to go their entire lives without thinking about lice, let alone dealing with an infestation. Lice are wingless insects that spend their entire lives on human scalps, feeding on blood and laying eggs. Though they’ve probably been around for as long as …

    economy
    Sophie Turner and Maisie Williams wore matching outfits to their ‘Game of Thrones’ co-stars’ wedding

    Brian Dowling/Invision for People Magazine/AP Images “Game of Thrones” stars Kit Harington and Rose Leslie got married on Saturday. Their co-stars Sophie Turner and Maisie Williams were among the cast invited. The two BFFs were each other’s dates for the big day, and wore matching red and black outfits. Sophie Turner, …

    economy
    AI 101: How learning computers are becoming smarter

    IBT Many companies use the term artificial intelligence, or AI, as a way to generate excitement for their products and to present themselves as on the cutting edge of tech development. But what exactly is artificial intelligence? What does it involve? And how will it help the development of future …