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Amazon Expands Voice Payment Options

By David Nelyubin
October 16, 2019
in Analysts Coverage, Emerging Payments, IoT
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Amazon Expands Voice Payment Options

Amazon Expands Voice Payment Options

Voice commerce continues to evolve as digital assistants become more capable of handling everyday financial tasks. By expanding Amazon Pay’s integration with Alexa, Amazon is extending voice technology beyond shopping to include routine bill payments, allowing consumers to pay utilities with simple voice commands. This evolution reflects a broader trend toward reducing payment friction while making digital payments more accessible across a growing range of consumer services.

Voice payments are a new and convenient way to pay for goods and services using your voice. Amazon Pay and Alexa are two of the most popular voice payment platforms. With Amazon Pay, you can add your credit or debit card to your Amazon account and then use your voice to pay for items at participating merchants. Alexa, on the other hand, is a voice assistant that allows you to perform various tasks, including making payments. To make a payment using Alexa, you first need to link your credit or debit card to your Amazon account and then enable the Alexa Voice Purchasing feature.

Amazon has recently expanded on its voice payment options. The new feature gives consumers the ability to pay their utility bills just by talking to Alexa.

According to an article published in Republic World:

“Indian users could now pay their utility bills with Amazon Pay by talking to Alexa. This new Alexa feature supports payment of bills across categories such as electricity, water, post-paid mobile, cooking gas, broadband, and DTH  Users of Amazon Echo, Fire TV Stick and other devices with Alexa built-in can just say commands such as “Alexa, pay my mobile bill” or “Alexa, pay my electricity bill” to start using the new feature. “

It’s no surprise that Amazon Pay is targeting utilities, as they are one of the highest spending categories for consumers. By reducing payment friction and giving consumers the ability to pay for multiple services using one unified platform, Amazon increases its incentives, making it highly important to be top of wallet in an Amazon account.

However, even though this feature does reduce friction, it is still not as frictionless as automatic bill payments. Perhaps this will be a voice addition for Amazon Pay in the future.

Amazon’s expansion of Alexa-powered bill payments demonstrates how voice technology is becoming a more practical channel for everyday financial transactions. While voice payments offer greater convenience and help strengthen Amazon’s payments ecosystem, they still compete with established options such as automatic bill pay for recurring expenses. As voice authentication, artificial intelligence, and smart home adoption continue to improve, voice-enabled payments are likely to become an increasingly important component of the digital payments landscape.

Overview by David Nelyubin, Research Analysts at Mercator Advisory Group

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