LONDON, July 24, 2018 /PRNewswire/ --
Worldpay unveils Drone Pay
proof-of-concept for secure and speedy delivery
Researchers at Worldpay are investigating the use of drone
technology to help combat the growing issue of parcel fraud, it was
announced today. The payments provider has unveiled a prototype
design that could help pave the way for drone delivery around the
world.
Worldpay's Drone Pay proof-of-concept uses EMV contactless*
payment card technology to verify the identity of the recipient,
ensuring a parcel is delivered to the right person at the right
address. This technology is embedded into a drone landing pad,
which is issued to the customer in the form of a doormat. When the
drone lands to drop off the package, the card details stored within
the doormat are read automatically. If the information matches that
of the correct recipient, the parcel is released.
The growing popularity of online shopping has helped move the
value of the Australian parcel market to $9
billion,[1] and this number is set to explode
following the launch of Amazon Prime last month. However, a natural
consequence of this growth has been the rise in delivery
complaints, which topped 1.1 million last year.[2]
Worldpay's prototype demonstrates how drone technology could
help retailers provide a better last-mile experience by offering a
more reliable proof of delivery. Recent research by the payments
company suggests that Australian consumers are ready for drone
delivery to become a reality, as public perception towards the
concept becomes increasingly positive. A survey of 2000 consumers
found that Australia has reached a
tipping point for drone delivery adoption, with 42% ready to
embrace delivery by drones, compared to 30% hanging
back[3].
For consumers, drone delivery could offer far greater
convenience when shopping online. Shoppers can choose to have a
package delivered to a location convenient to them, and also have
the opportunity to check the item before accepting it. For
merchants, Worldpay's Drone Pay proof of concept could help reduce
delivery complaints, which cost companies unnecessary time, money
and lost custom every day.
Phil Pomford, General Manager for Asia
Pacific, Global Enterprise eCommerce at Worldpay Inc. said:
"Drones are already proving invaluable to certain industries, from
search and rescue, to environmental research, so there is
undoubtedly a huge potential market for delivery too. Our data
suggests that consumers are becoming increasingly open to the
notion of drone delivery. Nevertheless, there are still several
logistical hurdles that need to be addressed before it becomes
commonplace. The weight of the package and flying distance both
remain potential barriers to adoption, in addition to ensuring that
parcels are delivered to the correct customer.
This is where payment technology can help. By verifying the
identity of the recipient before releasing the parcel, our proof of
concept is an example of how technology can address the common
problems that many Australians experience with parcel delivery. The
volume of packages in transit is projected to reach 1 billion by
2021[4], as online increasingly becomes the channel of
choice for Australian shoppers. Merchants should therefore explore
new ways of innovating their supply chain capabilities, to keep
pace with demand."
You can watch a demo of the proof of concept here:
https://www.youtube.com/watch?v=YR9s_lp9l30&feature=youtu.be
* EMV stands for Europay, MasterCard and Visa, and is a global
standard for credit and debit cards that uses computer chips to
authenticate (and secure) chip-card transactions.
About the data
The research was compiled in partnership with Opinium and
interviewed over 20,102 consumers about their opinion on the
Internet of Things and drones. Research was conducted in 10 markets
- Australia, Brazil, China, Germany, the
Netherlands, Spain,
Sweden, Singapore, the UK and USA. In Australia, the study interviewed 2,006
consumers.
About Drone Pay
Drone Pay is a prototype technology developed by Worldpay's
innovation team to understand how payment technology can be used to
create more secure delivery and fulfilment for online retailers,
whilst also adding an additional layer of buy authentication.The
proof of concept uses EMV contactless payment card technology to
authenticate the identity of the recipient. The technology is drone
agnostic, and simply clips onto the drone model. The original drone
remains unaltered.
About Worldpay
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments
technology company with unique capability to power global
integrated omni-commerce. With industry-leading scale and an
unmatched integrated technology platform, Worldpay offers clients a
comprehensive suite of products and services globally, delivered
through a single provider.
Worldpay processes over 40 billion transactions annually through
more than 300 payment types across 146 countries and 126
currencies. The company's growth strategy includes expanding into
high-growth markets, verticals and customer segments, including
global eCommerce, Integrated Payments and B2B.
Worldpay, Inc. was formed in 2018 through the combination of the
No. 1 merchant acquirers in the U.S. and the U.K. Worldpay, Inc.
trades on the New York Stock Exchange as "WP" and the London Stock
Exchange as "WPY."
Visit us at http://www.worldpay.com.
References
1. https://internetretailing.com.au/e-commerce-drives-parcel-boom/
[https://internetretailing.com.au/e-commerce-drives-parcel-boom
]
2. Citizens Advice: Parcel delivery - delivery services in the
online shopping market
3. Research of 2,006 consumers conducted by Opinium in
June 2017
4.
https://internetretailing.com.au/e-commerce-drives-parcel-boom/
[https://internetretailing.com.au/e-commerce-drives-parcel-boom
]