Worldpay

Australians Ready for Drone Delivery to Take Off

LONDON, July 24, 2018 /PRNewswire/ --

Worldpay unveils Drone Pay proof-of-concept for secure and speedy delivery 

Researchers at Worldpay are investigating the use of drone technology to help combat the growing issue of parcel fraud, it was announced today. The payments provider has unveiled a prototype design that could help pave the way for drone delivery around the world.

Worldpay's Drone Pay proof-of-concept uses EMV contactless* payment card technology to verify the identity of the recipient, ensuring a parcel is delivered to the right 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.

The growing popularity of online shopping has helped move the value of the Australian parcel market to $9 billion,^[1] and this number is set to explode following the launch of Amazon Prime last month. However, a natural consequence of this growth has been the rise in delivery complaints, which topped 1.1 million last year.^[2]

Worldpay's prototype demonstrates how drone technology could help retailers provide a better last-mile experience by offering a more reliable proof of delivery. Recent research by the payments company suggests that Australian consumers are ready for drone delivery to become a reality, as public perception towards the concept becomes increasingly positive. A survey of 2000 consumers found that Australia has reached a tipping point for drone delivery adoption, with 42% ready to embrace delivery by drones, compared to 30% hanging back^[3].

For consumers, drone delivery could offer far greater convenience when shopping online. Shoppers can choose to have a package delivered to a location convenient to them, and also have the opportunity to check the item before accepting it. For merchants, Worldpay's Drone Pay proof of concept could help reduce delivery complaints, which cost companies unnecessary time, money and lost custom every day.

Phil Pomford, General Manager for Asia Pacific, Global Enterprise eCommerce at Worldpay Inc. said: "Drones are already proving invaluable to certain industries, from search and rescue, to environmental research, so there is undoubtedly a huge potential market for delivery too. Our data suggests that consumers are becoming increasingly open to the notion of drone delivery. Nevertheless, there are still several logistical hurdles that need to be addressed before it becomes commonplace. The weight of the package and flying distance both remain potential barriers to adoption, in addition to ensuring that parcels are delivered to the correct customer.