The Future of Payments

When I was working at Citi Cards, I was under the impression that people were spending a lot of time figuring out what credit cards they should have. Were they going to get points or miles? Weren’t they going to be so excited that they could redeem their points with Amazon? Of course, working in a credit card company I was thinking about this all day and I lost sight of the fact that my customers had far better things to do with their time.

That’s why the Pymnts.com study on How We Will Pay caught my eye. The study highlighted a couple of key numbers I hadn’t thought about:

  • 61% of shoppers don’t enjoy the act of shopping
  • 66% of consumers would use a connected device to enable a seamless shopping experience

In short, most people don’t like shopping and find payments an even worse pain to deal with. The future of payments isn’t about making payments cooler (a la Venmo) it’s making them invisible. My friend Ashwin Shirvaikar described this as Internet of Things Payments in his section of Disruptive Innovations V.

But what does a future of transparent payments look like? Some examples are:

  • Uber already integrates payments seamlessly into its app. You don’t think about “paying” for an Uber. You think about booking a trip and the payment is part of that. It’s like express check out at a hotel.
  • Slice On-demand Insurance is an insurance platform for the “Gig Economy.” Slice provides insurance to Airbnb hosts and Uber drivers only when they are providing services. It integrates seamlessly into the buying transaction by providing insurance any time the host takes a reservation.
  • Parkmobile, a leader in mobile parking, has developed an integrated parking solution with BMW.  When parking at a Parkmobile enabled location, drivers will be able to begin a parking session directly from their dashboards without leaving their car to pay a meter. The parking session is terminated once the driver leaves the spot. 

But who should develop the future of payments? The Pymnts’ How Will We Pay survey asked this question to consumers. Interestingly enough, the top named company was Amazon.

The Pymnts’ How Will We Pay Survey. Note: Super Connected Consumers Have 6+ Devices That are Not Laptops, Smartphones or Tablets

So why does Amazon come up so high on this list? Because customers want an innovative shopping experience, not an innovative payments experience.

The best example of this is Amazon Go. Amazon Go is a prototype payments experience of the future. Customers go into an Amazon Go store, pick up their items and leave. Checkout is performed automatically when the customer leaves the store. While there are currently some issues around the price to create these stores (automation being more pricey than human labor) and theft due to shoplifting, this is a good view of the future of payments.

While those working in the payments industry think about payments all day, consumers see payments as an inconvenience. Some services like Parkmobile and Slice are already providing great payments integration. In the future, companies will be providing truly integrated services like Amazon Go.

Alexa Blueprints: Personal Alexa Skills in Minutes

I like building Alexa Skills. Skills are Amazon’s name of the apps that run inside Amazon’s Echo and other Alexa products. Building skills is a good way for me to understand how Alexa works and it’s a pretty neat party trick to get Alexa to pretend that she knows me.

Building skills used to be difficult.  You needed to know how to program a voice user interface. Alexa soon came out with templates which made things easier but still required you to know how to program and so some basic system administration.  I persisted in building a simple trivia game and Amazon sent me a T-Shirt for having published one of the first 1000 skills.

My Shirt for Building One of the First Thousand Alexa Skills (Front)
My Shirt for Building One of the First Thousand Alexa Skills (Back)

I remember thinking, “Where can Alexa be useful to me?” At the time, my boys were just starting to learn peoples birthdays. So I started building a skill for family birthdays. This was a great way to drill them on an important topic until they memorized it.

Alexa would ask, “Who’s birthday is on June 20th? One … Daddy … Two … Mommy … ”

And the kids would respond, “Daddy!” (Actually, they probably said “One” because the technology wasn’t very good at picking up names at the time.)

The problem with this skill is that you needed to include all the birthdays into the skill itself. So I could build a birthday family trivia skill but it would have the birthdays for my family. That’s not a particularly useful skill for other people.

My wife Abigail had a good idea for a skill as well. She said, “It would be really convenient to have a skill for the babysitter to know everything about the house — like bedtimes, WiFi passwords and emergency phone numbers.” But we couldn’t do this either because the program needed to have OUR information inside of it.

Amazon solved a lot of this problem last month with Alexa Blueprints. Alexa Blueprints are a simple and convenient way to create a customized skill that’s just for you. Instead of programming to create the skill, you just type into the web forms and Alexa does the rest.

You Create a Blueprint Just by Filling Out a Form

There’s a number of pretty cool thing is that you can build with Alexa Blueprints. I can easily build my birthday trivia game, Abigail’s babysitter skill and even a Game Show complete with buzzers. My sons and I used the Mother’s Day blueprint to build a card for my wife. It took about 10 minutes and Voila — the Mother’s Day card was done!

Sample text for a 10 minute Alexa Mother’s Day Skill

Take a look at this video to see how you can create your own Alexa blueprint.

Update (10/1/18): I’ve also created another couple of skills for the boys. I’ve used the Flashcards Blueprint to create a vocabulary quiz for my son’s fourth grade class. It’s a great way for him to come up with the definitions for us to put in. Also, we use Whose Turn to decide who’s turn it is to do different activities.