Innovation Trends in Global Retail and Payments 2017

Innovation Trends in Global Retail and Payments 2017

Merchants and shoppers alike are adopting innovations such as Artificial Intelligence (AI), Augmented Reality and Virtual Reality, the Internet of Things and blockchain. Conversational commerce is one new development resulting from AI, whereby shoppers can give vocal instructions related to shopping to virtual assistants like Amazon’s Alexa or Apple’s Siri. Surveys in the USA and the UK cited in the report indicate that consumers are ready to use this technology, as well as a related innovation, the chat robot, which guides a purchase and answers customer queries within a messenger application. Chatbots are predicted to offer huge cost savings to merchants as they are adapted widely in the next five years. The Internet of Things permitting such services as automatic refills and automatic checkout of products in physical stores is also projected to be widely adapted, as nearly all newly designed electronic products will have the IoT built in.

Online and in-store payments are also impacted by innovative technologies. Contactless or NFC payment and mobile wallets have been around for a few years and are gaining wider acceptance, especially in developing markets in Asia. In China alone, in-store mobile payments approached USD 100 billion over the past year. Another new technology, blockchain, is behind the spread of bitcoin and other virtual currencies, and is predicted to become more widely used in the finance and payment industry to detect fraud and improve infrastructure. The use of AI and biometrics related to payments are also predicted to become more widely adopted, according to research cited in the report.

1. Management Summary
2. Top Innovation Predictions & Most Innovative Companies
Global: Top 10 Technology and Innovation Predictions Through 2022, October 2017
Global: Technologies Perceived as Most Disruptive for Industries and Business Models for the Next Five Years According to Business and Technology Executives, in % of Respondents, 2016
Global: List of Top 50 Most Innovative Companies, 2016
3. Innovation Trends in E-Commerce & Retail
3.1. Conversational Commerce: Chatbots and Voice-Activated Virtual Assistants
Global: Chatbot Trend Overview & Examples, October 2017
Global: Annual Cost Savings from Chatbots, in USD million, 2017e, 2019f & 2022f
Global: Share of Companies Which Launched Chatbots or Plan to Launch, in %, H2 2016
Global: Top Platforms Preferred for Building Chatbots, in % of Respondents Among Businesses, January 2017
EMEA: Share of Senior Sales and Marketing Executives Using Chatbots for Customer Interactions, in %, 2016 & 2020f
UK: Predicted Uses of Chatbots and Barriers to Usage, in % of Consumers, May 2016
France: Breakdown of Awareness and Intention to Use Chatbots, in % of Consumers, November 2016
Germany: Share of Consumers Who Could Imagine Using Chatbots, in %, and Interest in Potential Chatbot Uses, in % of Consumers Who Could Imagine Using Chatbots, November 2016
USA: Breakdown of Likelihood of Purchasing Products/Services from Brands Using a Chatbot, in % of Millennial Internet Users, December 2016
Global: Voice-Activated Virtual Assistant Trend Overview & Example, October 2017
Global: Share of User Interactions with Smartphone via Virtual Personal Assistants, 2019f
Global: Top Uses of Voice-Activated Virtual Assistance Devices, in % of Virtual Assistant Users, by the USA and the UK, by Gender, April 2017
Global: Perceived Influence of Voice-Activated Virtual Assistance Devices on Shopping Behavior, in % of Virtual Assistant Users, by the USA and the UK, by Gender, April 2017
Global: Breakdown of Experience With Voice-Activated Ordering, in % of Generation Z Shoppers, March 2017
3.2. Augmented Reality and Virtual Reality in Shopping
Global: Augmented Reality and Virtual Reality in Shopping Trend Overview & Examples, October 2017
Global: Industry Spending on AR/VR in Retail Showcasing, in USD million, 2017e & 2021f
Global: Industries Expected to Benefit the Most form AR According to Global Business and IT Professionals, in % of Respondents, November 2016
Global: Share of Consumers in Selected Countries Who Heard about VR/AR and Would Consider Shopping Using VR/AR, in %, March 2017
USA: Interest in Possible Shopping Uses of AR/VR, in % of AR/VR Users, July 2017
USA: Product Categories Which Consumers are Willing to Shop via AR, in % of Consumers, August 2016
3.3. Internet of Things in Retail: Checkout-Free Shopping and Automatic Replenishment
Global: Checkout-Free Store Trend Overview & Examples, October 2017
Asia: Overview of Selected Automated Convenience Stores in Asia, July 2017
Global: Share of Internet Users Who Believe Automatic Checkout Will be Important in the Future, in %, July 2017
USA: Breakdown of the Likelihood of Trying Amazon Go, in % of Consumers, by Gender, Age Group and Total, December 2016
Global: Automatic Shopping Replenishment Trend Overview & Examples, October 2017
Global: Share of Internet Users Who Believe Online Automatic Replenishment Would be Important to Their Experience in the Future, in %, July 2017
Global: Share of Generation Z Shoppers Interested in Automatic Replenishment Programs, in %, March 2017
4. Payment Innovation Trends
4.1. Overview of Innovative Technologies in Payments
Global: Overview of Selected Innovative Technologies in Payments, October 2017
Global: Most Relevant Technologies for Global FinTech and Financial Companies to Invest In, in % of Respondents, April 2017
Global: Most Relevant Emerging Technologies for Large FinTech and Financial Companies to Invest In, in % of Respondents in Each Group, April 2017
4.2. Mobile Wallets & Contactless Mobile Payments
Global: Contactless Payment Transaction Value, in USD billion, 2017e & 2019f
Global: Number of Contactless Payment Users of Android Pay, Apple Pay, and Samsung Pay, in millions, 2015 - 2017f
China: Share of Internet Users Who Use Mobile Payment in Physical Stores, in %, 2016
China: Payment Transactions Processed via Offline QR Code Scanning, in CNY billion, Q1 2016 - Q1 2017
Australia: Mobile Contactless Payment Awareness, in % of Individuals, by Total and by Generation, December 2016
USA: Proximity Mobile Payment Transaction Value, in USD billion, 2016 - 2021f
USA: Penetration of Apple Pay, Android Pay and Samsung Pay, by Enrolled, Have Used and Frequent Users, in % of Compatible Device Owners, January 2017
USA: Merchant Mobile Wallet Ownership, in % of Banked Smartphone Users, and Merchant Mobile Wallet Apps Used, in % of Merchant Wallet App Users, January 2017
Western Europe: Mobile Payment Transactions, in EUR billion, 2016 & 2021f
Western Europe: In-Store Mobile Payment Share of Total Mobile Payment Value, in %, 2016 & 2021f
Europe: New Technologies That European Multichannel Retailers Are Taking Advantage of, in %, January 2017
Europe: Share of Millennials Using Mobile Payment Service from PayPal and Apple Pay, in %, by Germany, Italy, the Netherlands, and the UK, July 2016
UK: Breakdown of Frequency of Using Mobile Phone to Make Contactless Payments In-Store, in % of Smartphone Users, By Age Group, Gender and Total, 2016
France: Breakdown of Belief in That Smartphone Will Become the Main Mean of Payment by 2025, by Payment Amount, in %, December 2016
Latin America: Share of Consumers Interested in In-Store Mobile Payments, in % of Surveyed Consumers, by Brazil and Mexico, June 2016
Middle East: Share of Consumers in the Middle East Who Would Opt for Alternative Payment Methods, in %, and Selected Alternative Payment Methods They Would Opt for, incl. “Mobile Wallet”, in %, May 2016
4.3. Artificial Intelligence & Voice Payments
USA: Examples of AI-based Advanced Analytics Usage in Payments and Banking, October 2017
USA: Voice Payment Users, in millions, and Penetration, in % of U.S. Adults, 2017 - 2022f
USA: Payment Transactions Carried Out Using Voice Command, in % of Voice Users, April 2017
4.4. Biometric Authentication
Global: Mobile Payment Security Features Demanded by Consumers and Implemented by Businesses, in %, 2016
Global: Security Authentication Features That Online Shoppers in the USA and the UK Would Consider Setting Up for Online Purchases in the Next 12 Months, in %, November 2016
USA: Innovative Authentication Technology for Making and Receiving Payments in 2027 According to U.S. Consumers, in % of Consumers, June 2017
Europe: Top Locations Where Consumers Would Want to Use Biometric Authentication for Payments, in % of Respondents, May 2016
UK: Services that Adults Would be Most Comfortable Using Biometric Identification for, incl. “Authorizing Payments”, in %, September 2015
Germany: Usage of and Interest in Mobile Payments In-Store and Payments Based on Biometric Identification In-Store, in % of Consumers, and in % of Retailers, May 2016
South Korea: Breakdown of Preferred Method of Authentication in Convenient Payment Services, in % of Users, October 2016
4.5. Blockchain & Virtual currency
Global: Status of Adoption of Blockchain Technology Among Global FinTech and Financial Companies, in % of Respondents, April 2017
Global: Business Use Cases for Blockchain According to Global FinTech and Financial Companies, in % of Respondents, April 2017
Global: Blockchain Trends Expected to be Most Important for the Payment Industry According to Industry Participants, in % of Respondents, April 2017
Europe: Share of Internet Users Who Believe that Digital Currencies Are the Future of Spending Online, in %, by Selected European Countries, Australia, and the USA, April 2016
Japan: Breakdown of Awareness of Virtual Currencies, in % of Internet Users, and Interest in Using Them, in % of Internet Users Who Know Virtual Currencies, May 2016
Japan: Locations for Current/Intended Use of Virtual Currencies, incl. “Online Shopping”, in % of Internet Users Who Are Aware of Virtual Currencies and Are Interested in Using Them, May 2016
USA: General Payment Methods Used, incl. Online and Mobile Methods, in % of Internet Users, March 2016

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