Reports indicate that about a fifth of Domino's Pizza, Inc. (NYSE:DPZ)’s customers in Britain use Amazon.com, Inc. (NASDAQ:AMZN) Alexa to place their voice-command orders. Domino’s, which already has many other digital offerings, unveiled the Alexa feature three months ago. According to Domino’s head of digital in the UK, Nick Dutch, voice-ordering is convenient for customers.
“We’re building for the future, and we need to leverage this… in the hope that over time, more people use the technology,” said Dutch.
Digital strategy
The Alexa feature can be used by any customer of the pizza chain who has an online account as this is necessary since favorite orders can be saved and submitted via platforms such as Alphabet Inc (NASDAQ:GOOGL) Google Home, Amazon apps or website or Facebook Inc (NASDAQ:FB) Messenger. Domino’s digital strategy has been panning out well and it is expected that since the popularity of voice payments is growing, the use of Alexa will also increase.
Last year global digital sales for the pizza chain rose by 19% from the previous year and reached a figure of $5.6 billion. The growth of voice payments is expected to be to the advantage of Domino’s as this is a trend that is slowly growing. According to a survey that was conducted by BI Intelligence about 8% of respondents in the United States have use voice commands to make purchases, pay a bill or making peer-to-peer payments.
Voice payments
It estimated that voice payments will increase in use by nearly four times the current levels in the course of the next half a decade. By 2022 about 78 million consumers or 31% of adults in the United States will be using voice payments. This is likely to lead to more payments players venturing into voice payments and as a result will have a ripple effect which will entice even more users to pay with Alexa.
Besides Alexa other voice assistants such as Apple Inc. (NASDAQ:AAPL)’s Siri and Google Assistant are also gaining the abilities of bank tellers, personal shoppers and cashiers. Currently Siri is capable of making peer-to-peer payments with Paypal Holdings Inc (NASDAQ:PYPL) Venmo while Alexa can be used to pay off credit card bills via Capital One. Users of Google Assistant are also able to shop using their voices.
On Monday shares of Domino’s Pizza Inc rose by 0.73% to close the day at $199.99.
