Transaction Trends

Worldpay, one of the world’s largest payments technology companies and an ETA member, announced this week a proof-of-concept which leverages secure payments technology to add security to the nascent drone delivery marketplace in ecommerce.

Worldpay’s proof-of-concept uses EMV contactless card technology to verify the identity of the recipient in a drone delivery, a frictionless way to increase security and prevent fraud in drone deliveries.

“Drones have the potential to really increase last-mile efficiency, which represents up to 50% of delivery cost for retailers,” said Maria Prados, VP Global Retail, in a blog post which outlines the proof-of-concept. “Also, the potential to reduce parcel fraud, as with our proof of concept, is huge as the drone uses EMV contactless payment card technology to verify the identity of the recipient,” Prados said.

According Worldpay in the blog post, ecommerce has driven the global delivery market to $350 billion, while the drone market globally is expected to be worth over $11 billion by 2020, with $1 billion invested in drone delivery in 2017.

Worldpay says parcel fraud has grown as a “natural consequence” of this ecommerce growth. In fact, Worldpay predicts parcel fraud will cost merchants upwards of $25 billion a year by 2020 if no solution is implemented.

Worldpay’s proof-of-concept drone delivery could provide answer through innovative implementations of contactless and EMV payments technology by preventing delivery fraud while maintaining convenience.

Watch Worldpay’s proof-of-concept video below.