Voice-based Payments Market Size, Share, and Industry Analysis By Component (Solutions {Voice Authentication, Payment Processing Platforms, and Voice AI Assistants} and Services {Integration, Consulting, and Support Services}), By Payment Method (Peer-to-Peer (P2P) Payments, In-store Payments, and Online Payments), By Technology (AI and NLP-based Solutions and Voice Biometrics), By Industry Vertical (Retail and E-commerce, Banking, Financial Services, and Insurance (BFSI), Hospitality, and Transportation), and Regional Forecast, 2025-2032

The global voice-based payments market is anticipated to depict substantial expansion over the coming years driven by a shift toward digital payments across various regions. The technology involves the deployment of a voice-controlled device such as a smartphone or smart speaker for making payments.

• In 2022, there was a downturn in the withdrawal of cash and small-denomination banknotes, according to the Bank for International Settlements.

This signifies a growing inclination toward digitalization, which is set to push the demand for voice-based payment technology. A range of benefits associated with the technology comprise the ease and convenience of use, faster transactions, and enhanced customer engagement. Besides, the technology enables automation which reduces the need for human intervention for conducting transactions.

Voice-based Payments Market Driver

Rising Assistance Initiatives and Surge in Technology Adoption to Bolster Industry Growth

Various organizations are taking the lead to provide assistance in the implementation of voice payments. For instance, in 2023, the Payments Innovation Alliance launched a guide for assisting financial institutions in implementing the technology. An increase in technology adoption across several regions and the growing popularity of voice assistants are slated to propel industry expansion.

• According to TNS Inc., 26% of voice assistant owners in the U.K., U.S., and Australia used the technology for making a payment in 2022.

Voice-based Payments Market Restraint

Mounting Cybersecurity Concerns May Hamper Service Adoption

The rising concerns of cybersecurity may hinder the expansion of the technology. In 2023, the U.S. Payments Forum recorded a surge in card-not-present fraud attempts driven by a surge in mobile in-app and online transactions. There is a need for robust security measures considering the heightened significance of securing telephone-based payment card data. The adoption of appropriate measures for addressing these challenges is anticipated to support the expansion of the industry.

Voice-based Payments Market Opportunity

Increased Emphasis on Digitalization and Demand for Fast Payments

A surge in the digitalization of payment ecosystems of various countries is anticipated to open doors to new opportunities for industry players. Furthermore, fast payments have recorded a remarkable surge, as underscored by the Bank for International Settlements. A heightened emphasis on strengthening digital payment verification and authentication strategies by various stakeholders is poised to bolster the adoption of voice-based payments.

Key Insights

The report covers the following key insights:

• Key Industry Developments (Mergers, Acquisitions, Partnerships)
• Overview: Regulatory Scenario
• Impact of COVID-19 on the Voice-Based Payments Market 

Segmentation

Analysis by Component

Based on component, the market is divided into solutions (voice authentication, payment processing platforms, and voice AI assistants) and services (integration, consulting, and support services).

The solutions segment is anticipated to dominate the global market considering the escalating usage of payment processing platforms and voice authentication technology for ensuring safe and secure payments. An increase in the adoption of voice AI assistants for making payments is another significant factor influencing segment growth.

The services segment is slated to depict considerable expansion driven by the rising integration of these voice-based payments technology into various software and applications. Besides, the technology can also be used to provide support services across a range of industries.

Analysis by Payment Method

On the basis of payment method, the market is subdivided into peer-to-peer (P2P) payments, in-store payments, and online payments.

The online payments segment is estimated to lead the global market with the expansion of the e-commerce sector and rising emphasis on contactless payments owing to higher transaction limits and speed. Furthermore, consumers are also opting for online voice-based payments for paying utility bills. According to Nacha, in 2023, the total number of consumer bill payments and other debits stood at 14.53 billion, accounting for USD 9.70 billion.

The peer-to-peer (P2P) payments segment is poised to exhibit significant growth in light of the escalating demand for convenient payment options. Another feature augmenting the adoption of the technology for P2P payments is the advantage of faster payments.

Analysis by Technology

Based on technology, the voice-based payments market is fragmented into AI and NLP-based solutions and voice biometrics.

The AI and NLP-based solutions segment is anticipated to record significant expansion owing to a rise in the demand for AI-based payment systems considering the benefits of enhanced security and fraud detection. The technology enables user interaction with AI (artificial technology), facilitating voice payments by leveraging natural language processing (NLP).

The voice biometrics segment is touted to register considerable expansion over the ensuing years. This can be credited to the adoption of voice biometrics for authenticating transactions. The technology enhances the speed and security of financial transactions.

Analysis by Industry Vertical

On the basis of industry vertical, the market is divided into retail and e-commerce, banking, financial services, and insurance (BFSI), hospitality, and transportation.

The retail and e-commerce segment is estimated to register notable expansion as voice assistants such as Alexa, Google Assistant, and Siri are increasingly being adopted for making payments. High inclusivity, streamlined payment and shopping experience, and effective fraud risk mitigation are some of the key benefits associated with voice-based payments.

The banking, financial services, and insurance (BFSI) segment is poised to surge at a significant rate with an escalation in the adoption of voice technology and software for money transfer. Some of the technologies that are anticipated to be used across the industry comprise AI (artificial intelligence) and IoT devices such as voice assistants and smart speakers.

Regional Analysis

Based on region, the market has been studied across Asia Pacific, Europe, North America, Latin America, and the Middle East & Africa.

North America is estimated to garner a dominant market share owing to the surging number of voice-based transactions and increasing advancements in technology. According to Nacha (National Automated Clearing House Association), the number of B2B (business-to-business) ACH payments touched 6.59 billion, accounting for a total worth of USD 54.20 trillion. Besides, the region depicts an escalated emphasis on enhanced security infrastructure for facilitating voice-based payments. Consumer verification and device authentication have been identified as key components in securing remote and mobile in-app payments.

The Asia Pacific market is anticipated to depict substantial expansion fostered by a surge in digitalization initiatives and the enforcement of government policies aimed at enhancing payment infrastructure. For instance, in May 2022, the Reserve Bank of India rolled out UPI 123PAY. The move would help 400 million feature phone users deploy voice commands for making digital payments. The expansion of the e-commerce industry also fuels the demand for this payment technology in the region.

Furthermore, the presence of a favorable regulatory landscape and mounting adoption of voice assistants are slated to bolster the market expansion in Europe. The region exhibits an increasing adoption of voice-based payments across e-commerce, transportation, and other end-user industries.

Key Players Covered

The report includes the profiles of the following key players:

• Amazon (U.S.)
• Google (U.S.)
• Apple (U.S.)
• Nuance Communications (U.S.)
• Alibaba Group (China)
• Mastercard (U.S.)
• Visa (U.S.)
• PayPal (U.S.)
• Square, Inc. (U.S.)
• Samsung Pay (South Korea)
• Stripe (Ireland)
• Vocalink (U.K.)
• VoicePay (India)
• Tencent (China)
• IBM Watson (U.S.)
• Baidu (China)
• Ant Financial (China)
• HDFC Bank (India)
• Wells Fargo (U.S.)
• Barclays (U.K.)

Key Industry Developments

• In December 2024, iWallet, a provider of digital payment solutions, introduced Voice AI technology payments for the enhancement of payment security. The system has been designed for processing TO (telephone orders) by using voice recognition for meeting the demand for user-friendly and secure payment methods.
• In August 2024, Amazon announced its in-process work on the use of advanced technologies for rolling out safer voice authentication technology for digital payments. The current payment system makes use of OTPs (One-Time Passwords) or PIN (Personal Identification Number).
• In September 2023, the National Payments Corporation of India (NPCI) introduced an array of new features to boost digital inclusion in India. These comprise conversational payments, UPI X Lite for offline payments, and a credit line on UPI. The NPCI ecosystem is anticipated to revolutionize the country as it moves toward digitalization.
• In November 2021, Bank Asia shared plans for the implementation of the voice recognition technology in its banking system. The solution would help customers to transact money even in the absence of an internet connection.