One of the world’s largest payment processing companies has harnessed the power of drones in a move to stamp out fraud and streamline its payment systems.
Worldpay has developed Drone Pay, a proof of concept which delivers online packages and checks the recipient is who they say they are.
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.
When the drone lands to drop off the package, the card details stored within the pad are read automatically. If the information matches that of the correct recipient, the parcel is released.
A spokesperson for Worldpay said: “As drone popularity and technology advance, large multinationals such as Amazon, UPS and Google are already looking to drones to help with deliveries and cut time and cost – especially in booming Asian megacities where they could also reduce traffic congestion and harmful emissions.
“Ground-based robots have already begun delivering packages on a small scale. In the US alone the development of the drone delivery industry has boomed: from a $40 (£30.4) billion market in 2012 to a $1 (£0.76) billion market in 2017.”
The company’s innovation team has built a proof of concept to demonstrate the viability of a delivery drone releasing payment once identity is checked.
Maria Prados, VP of global retail, added: “Drones have the potential to really increase last-mile efficiency, which represents up to 50% of delivery cost for retailers.
“Although we do not expect mass adoption within the next couple of years, major companies are already getting serious with drones – because they can then deliver anywhere and delivery within minutes is every shopper’s dream! 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.”