EmTech India 2018: Future of payments lies in ‘ambient payments’, says PayPal’s Edwin Aoki
Digital payments are quickly moving towards a scenario where the medium of transaction is ubiquitous and something that one doesn’t have to think about, said Edwin Aoki, chief architect, PayPal. “We call it ambient payments,” he said.
“Today, when most people use Ola or Uber, they don’t really think about payments. It’s part of the overall experience. Everything associated with payments happens in the background seamlessly. Our aim is to create more and more of these ambient experiences,” Aoki said while delivering a keynote address at EmTech India 2018 on Thursday.
Unlike the past where customers had to go in search of payment mechanisms like an ATM, in the future, payments will come to customers, he said.
“Think of a scenario where you are making a payment from your car, for a parking spot, for example. In such a scenario, the use of a 2 factor authentication would be inconvenient and perhaps even dangerous,” Aoki said.
“But if you think about it, your car knows quite a bit about you. It has access to your location data, the pressure on the seat, etc. The car can, to a fair degree of certainty, ascertain information about your identity. All these technologies are available today, although they are not necessarily being used for payments,” he added.
But with the proliferation of the use of such personal data, the issue of data security and data regulation will become extremely important, Aoki said.
A recent estimate made by the US government’s Council of Economic Advisers pointed out that cyberattacks cost the US economy alone between $50 and $100 billion a year.
“At PayPal, we use over a 1,000 data points in order to bring a one-tap experience for our customers. We also use data in our fraud and risk analysis. Additional investments that detect and deter cyberattacks are essential. We need to invest in self-healing infrastructure that limits the scope and impact of breaches when they do occur,” Aoki said.
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