Artificial intelligence (AI) is no longer the stuff of science fiction and fantastical cartoons; it’s here right now. If you accept credit cards in your business, you will soon begin to feel its influence and reap the rewards that its insightful automation can provide.
What is artificial intelligence?
In a nutshell, AI technologies are designed to perform tasks that once required human intelligence to implement. We are already seeing the power of AI in voice-activated systems such as Alexa and Siri as well as in chatbots, online gaming, and self-driving cars. Therefore, it should come as no surprise that it is also entering into the payments ecosystem.
The same technology that can analyze a consumer’s current buying behaviors and intelligently anticipate what they will purchase next week can transform the services your payment processing provider furnishes. Predicting and reducing fraud, simplifying the payments process, enhancing risk assessment, and providing better customer service are just some of the advantages it will bring to the table.
Fraud prevention.
AI and machine learning can be used by payment gateways to calculate a risk score for each transaction. In an instant, fraud or other types of suspicious behaviors can be flagged for further investigation by a human. Furthermore, transactions can be processed more accurately, faster, and in greater numbers with the help of AI.
For example, let’s say that a customer suddenly spends four times their normal amount, or the purchase occurs far from the person’s home address. While humans might never pick up on these discrepancies, AI can flag them in real time, notifying human staff right away so that the situation can be investigated further.
Enhanced payment efficiency.
The automated technology found in AI systems can markedly increase the accuracy and efficiency of payments. Learning algorithms enhance authentication and other security measures while the AI system can also detect and fix human errors before they lead to negative consequences. Finally, because AI can process huge amounts of data accurately and quickly, companies are better able to meet compliance requirements and create actionable reports that will improve their current operations and forecasting abilities.
Improve customer experience.
While many consumers prefer to speak with a human customer service agent to resolve complex issues, automation is already successfully helping to address simple questions. As a result, hold times are eliminated for many requests, leaving staff free to assist with more complex situations that are beyond the scope of the AI chatbot.
AI is also capable of analyzing data such as the customer’s location, time of day, and previous payment history in order to tailor the payments offered. What’s more, AI can leverage these same details to recommend targeted marketing strategies that personalize the buying experience for each customer. It is no secret that this customization is highly sought after by today’s savvy consumers.
The payment gateway industry is already embracing AI. Billions of digital transactions are being conducted with the help of AI — and in half the time. Furthermore, its predictive capabilities allow companies to forecast growth and future payment volume so that every transaction is as efficient and secure as possible. Ultimately, AI will foster a better experience for customers and a more cost-effective, secure ecosystem for financial institutions.
