Mastercard partnered with mobile chip designing giant Qualcomm and wearable technology manufacturer Osterhout Design Group (ODG) to develop an augmented reality (AR) shopping experience.
The AR experience incorporates ODG's R-9 AR smartglasses, Identity Check Mobile, iris authentication, and mobile payments via Masterpass.
The smartglasses will display digital descriptions of a physical product — such as its price — that a consumer looks at while shopping with them on. Consumers can then purchase items using Masterpass and verify their identity through an iris scan. The AR demo — which used clothes from Saks Fifth Avenue — was showcased at this week’s Money20/20 conference in Las Vegas. This showcase follows Mastercard’s recent partnership with Swarovski for a virtual reality (VR) shopping app.
As AR and VR technologies popularize, major opportunities for payments players will continue to open up.
- AR technology is popularizing. By 2022, global AR glasses shipments are projectedto hit 23 million units, up from 150,000 unit shipments in 2016. As consumer interest in AR technology increases, more opportunities to integrate payments — through shopping experiences like Mastercard’s, for example — will open up, allowing payment players to enter the space. Integrating a biometric authentication method like iris scanning can reassure consumers that their data is safe on this relatively unfamiliar purchasing platform.
- Payment firms are seeking ways to take advantage of the rising popularity in this space. Worldpay — Europe’s largest merchant acquirer — recently launched a VR payment offering targeting VR game producers. And as more retailers innovate with AR and VR — Ikea launched an AR app allowing consumers to digitally see how furniture would look in their homes, for instance — it will present even more opportunities for payment players to get involved and grab a share of the market.
- Provides an overview of the numerous applications of AI in retail, using case studies of how retailers are currently gaining an advantage using this technology. These applications include personalizing online interfaces, tailoring product recommendations, increasing the relevance of shoppers search results, and providing immediate and useful customer service.
- Examines the various challenges that retailers may face when looking to implementing AI, which typically stems from data storage systems being outdated and inflexible, as well as organizational barriers that prevent personalization strategies from being executed effectively.
- Gives two different strategies that retailers can use to successfully implement AI, and discusses the advantages and disadvantages of each strategy.
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