Augmented Reality in Banking: Challenges and Opportunities for AR Payment Technology
Augmented reality (AR) technology has had its ups and downs in the banking and payments industry, but a new report suggests that there is still hope for its use in marketing. According to GlobalData’s Augmented Reality in Banking report, the original standalone use cases for AR, such as branch locators, have mostly shut down due to lack of interest. However, the report highlights that AR can still be valuable when used sparingly and with strong utility.
Currently, AR is most useful for banks in the form of specialized marketing campaigns that leverage the capabilities of smartphones. Online-based payments and banking providers like Revolut have successfully used AR in marketing campaigns, such as the launch of their luxury “Ultra” card with an AR installation in London’s Covent Garden.
In addition to marketing, AR also has potential applications in the sales process, particularly in real estate and vehicle finance transactions. For example, AR can provide additional information to consumers when buying a house, such as refurbishment costs and links to recommended builders or furniture stores. Capital One has also integrated AR features into its Auto Navigator app, allowing users to view information about cars through their smartphone cameras.
Despite the potential benefits of AR technology, there are challenges to its implementation, particularly in managing cybersecurity risks. Banks must ensure that customer data is secure when using AR, especially when working with third-party suppliers to develop AR applications. The interactive nature of AR also poses risks, as malicious applications could potentially trick users into revealing sensitive information or performing unsafe actions.
Overall, opinions on the future of AR technology in banking and payments are mixed. While some believe that the technology is overhyped, others see potential for it to fulfill its promises. As the technology continues to evolve, it will be interesting to see how banks and payments firms navigate the challenges and opportunities presented by AR.
