This story was delivered to BI Intelligence "Payments Briefing" subscribers hours before appearing on Business Insider. To be the first to know, please click here.Software firm Daon has developed software that will allow customers to use Amazon Alexa-enabled devices, like Echo smart speakers, to send and receive peer-to-peer (P2P) transfers with their banks, according toCNET.The tool would have customers ask Alexa to open Daon, tell the skill to check a balance or send funds, and give a name, at which point the user would be pushed to authenticate biometrically using their phone. Recipients would have to be added as a designated payee option using online or mobile banking in order to prevent fraud. Daon doesn't yet have any partners to launch the service, but is reportedly in talks with various players that could bring the tool to fruition within the next 18 months.The move comes as the P2P payments space continues to expand, and as banks look to take a further stake in the game.Business Insider Intelligenceestimatesthat mobile P2P volume will hit $336 billion in 2021, up from $19 billion six years earlier. As volume grows, more players are moving into the space, including banks that are part of the Zelle network, and third-party players, like Apple and Google, which are developing their own services.As banks specifically seek to compete, a voice partnership would be a smart move, since it could give them early entry to a growing market and fast access to a wide swath of potential users. This news comes following rumors about Amazon pushing to partner with a bank to develop a checking-account-like product, which could incorporate technology like Daon's to extend functionality to Alexa products, making it a win-win for both players.But voice-based P2P could face obstacles that are tough to overcome.Voice payments are becoming more popular, but they still appeal to just a small share of the population.Last year,8%of US adults had used voice commands to buy something or send money ' a figure poised to quadruple by 2022, representing massive gains but still keeping adoption at just 31% of the overall population. As comfort with voice rises, Daon's software could become more appealing, and it might even draw users into the ecosysyem, but it isn't likely to see mass adoption in the futureThat's also due to major pain points.Security is one of the largest deterrents for voice payments, with Alexa being perceived as particularly unsafe. Daon's product has tools to counteract that, like authentication and payee designation, but even with bank branding, which might help, it likely won't be enough to overcome all fears. On top of that, these measures detract from the consumer experience by pushing them back to their mobile device to complete the payment. For many users looking for convenience, it might be tough to justify a multi-device payment when they could simply use an existing service via smartphone alone, especially since many of these already have voice integrations through Siri on iPhones, for example.Dan Van Dyke, senior research analyst for Business Insider Intelligence, Business Insider's premium research service, has compiled a detailed report on voice payments that:Shares current and projected adoption of voice payments.Outlines voice payments and banking integrations on the market.Examines growth drivers and barriers to consumers' voice payments adoption.Providesstrategies for successfully deploying voice interfaces. Subscribe to an All-Access membership to Business Insider Intelligence and gain immediate access to: This report and more than 250 other expertly researched reports Access to all future reports and daily newsletters Forecasts of new and emerging technologies in your industry And more! Learn More Purchase & download the full report from our research store Join the conversation about this story
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