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 potential 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 largely fallen out of favor due to lack of interest. However, the report highlights that AR can still be effective when used sparingly and with a focus on utility.
Currently, AR is being utilized by online-based payments and banking providers for specialized marketing campaigns. For example, Revolut partnered with an experiential marketing services company to launch its luxury “Ultra” card with an AR installation in London’s Covent Garden. This showcases how AR can be used to highlight the benefits of a product in a unique and engaging way.
Additionally, AR has found applications in the sales process, particularly in industries like real estate and vehicle finance. For example, Capital One added an AR feature to its Auto Navigator app, allowing users to view information about cars by simply pointing their camera at them. This interactive and informative approach enhances the overall purchasing experience for consumers.
Despite these advancements, there are still challenges to overcome when implementing AR technology in banking and payments. One major concern is cybersecurity, as AR applications often involve sharing data with third-party suppliers, increasing the risk of potential intrusions and fraud. Banks must ensure that customer data is secured to high standards to prevent any security breaches.
Overall, while AR technology may still have a long way to go before it is fully integrated into the banking and payments industry, there is optimism about its potential. A GlobalData tech sentiments poll found that half of respondents believe that AR has practical uses, indicating that the technology may yet fulfill its promises in the future.
