Delivering by drone and fighting “parcel fraud”

The payments provider Worldpay is investigating the use of delivery drone technology to help combat the problem of “parcel fraud”.

In a statement issued on Tuesday (24 July), Worldpay explained that its “Drone Pay” proof-of-concept solution uses EMV (Europay, MasterCard and Visa) contactless payment card technology to verify the identity of the recipient, thereby “ensuring a parcel is delivered to the right person at the right address”.

Worldpay continued: “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.”

Motie Bring, General Manager for the UK, Global Enterprise eCommerce at Worldpay, said: “There is undoubtedly a huge potential market for drone delivery when it becomes a reality. Along with cost cutting benefits, drones could also be the answer to reducing congestion and pollution, and enabling faster delivery times. Our data suggests that consumers are becoming increasingly open to the notion of drone delivery, but there are still several logistical hurdles that need to be addressed before it becomes mainstay. 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.

“This is where payment technology will play an important role. By verifying the identity of the recipient before releasing the parcel, our proof of concept is an example of how technology can address the common problems associated with home delivery. The volume of parcels in transit will only increase, as shopping online increasingly becomes the channel of choice for UK consumers. Merchants should therefore explore new ways of innovating their supply chain capabilities, to keep pace with demand.”

Click here to see a video demonstrating the Drone Pay concept.

 

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