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INDUSTRY FOCUS

Worldpay trials drone with contactless payment technology to combat fraud

Worldpay is developing a proof-of-concept drone that incorporates contactless payment technology to help combat the growing issue of parcel fraud.

The Drone Pay prototype uses EMV contactless payment technology to verify the identity of the recipient, ensuring the parcel is delivered to the correct person at the right address. This technology is embedded into a drone landing pad, which is issued to the customer in the form of a doormat. When the drone lands to drop off the package, the card details stored within the doormat are read automatically. If the information matches that of the correct recipient, the parcel is released.

Worldpay noted that the growing popularity in online shopping, and subsequently parcel deliveries, has resulted in a rise in parcel fraud. According to Citizens Advice, missing items was one of the most common problems with online shopping deliveries last year, with more than one in five online shoppers reporting the failed arrival of expected parcels.

A survey of more than 2,000 consumers found that 39 per cent of consumers are ready to embrace delivery by drones, with Millennials expressing the most appetite (49 per cent comfortable with the technology).

Appetite for having a drone collect unwanted items is stronger, with 41 per cent of shoppers willing to try the technology for returns. This suggests that the ease and convenience that sky-bound services could offer will outweigh the concerns surrounding autonomous aerial vehicles.

Motie Bring, general manager for the UK, global enterprise e-commerce at Worldpay, said there is huge potential for the drone delivery market. “Along with cost-cutting benefits, drones could also be the answer to reducing congestion and pollution, and enabling faster delivery times. Our data suggests that consumers are becoming increasingly open to the notion of drone delivery, but there are still several logistical hurdles that need to be addressed before it becomes mainstay.

“By verifying the identity of the recipient before releasing the parcel, our proof of concept is an example of how technology can address the common problems associated with home delivery. The volume of parcels in transit will only increase, as shopping online increasingly becomes the channel of choice for UK consumers.”

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