Chatbots' impact on the payments ecosystem and how merchants can capitalize on them
- 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.
- 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.
- 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.
- Business Insider Intelligence, Business Insider's premium research service, has put together a detailed report on chatbots' role in the payments ecosystem.
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