lady using a credit card to make a payment online

Transforming the Payment landscape with AI

People have increasingly become comfortable using technologies such as AI and machine learning in their day-to-day lives. Various companies also have increased their use of AI and machine learning into their product offerings as well as their processes. With the computer processing technology advancing increasingly, companies, institutions and even governments are gathering massive amounts of data as more consumer interactions move towards digital. This type of technology is already transforming the payments landscape in the following aspects -

Improving Efficiency

AI and machine learning have the potential to revolutionize the way payments are processed by enhancing operational efficiency and decreasing costs involved. For instance, AI enabled chatbots are reducing the load for customer service representatives.

With machine learning being incorporated into payments, learning algorithms play an important in helping speed along authorization of transactions and monitoring.
Furthermore, AI helps reduce the processing time for payments. It also helps eliminate human error and save time for correcting those mistakes.

For a business, processing large amounts of data to generate financial reports to satisfy regulatory and compliance requirements would involve a team that would perform repetitive data processing tasks. Leveraging AI would involve training the models to do these tasks, and the model can ensure completing the tasks faster and more accurately than humans. These technologies can improve efficiency while gathering important user insights in real-time.

Machine learning has already proved to be an invaluable part of fraud detection, but there are many opportunities that lie in product sales, customer care, and retention. Machine learning can draw vast amounts of available data and utilize it to profile customers to guess their product needs while offering new opportunities for upselling.

This model can also help identify which customers that companies are at risk for losing as well as halt customer loss before it happens. Machine learning can help automate many customer service interactions. This model which uses deep insights, cognitive engines and natural language processing is already widely available and the usage will only grow with time.

Fraud Prevention

There are various methods for customers to make payments today. They are no longer limited to paying with cash or even cards. There are new payment methods on the rise such as card-not-present (CNP) transactions, but as it gets popular come new opportunities for fraud. AI and machine learning are at the forefront of not only detecting fraud but also preventing it before it happens.

These technologies already have the capability to uncover patterns and drive hidden insights and are working towards fine-tuning these insights. Companies are choosing to move away from a static model where the reliance is on supervised learning with input towards unsupervised learning wherein the deep belief neural network does not require a labeled training set, but continuously updates the model as new patterns emerge, allowing for a more robust and flexible fraud prevention detection tool.

As more commerce and payments move online, more data is accessible. This new robust algorithm uses machine learning to decrease the false positives and more agile detection of the actual frauds.

AI and machine learning have come a long way in the past decade. These technologies have already been adopted by many sectors and have transformed many aspects of traditional processes. Though exciting new technologies have been adopted by businesses to improve and enhance the payment process and customer experiences, the scope for future implementation is endless.

Related e-commerce articles:

Enhancing the customer experience beyond shopping
Enhancing the customer experience beyond shopping With consumers changing how they purchase and engage with a brand, retailers have leveraged[...]
Importance of AI in customer loyalty
The expectations of consumers today from their favourite brands has increased ten-fold, and with big companies such as Amazon providing[...]
What is GS1 Verified? – Everything you need to know
​Live from the GS1 Connect 2019 EventWith the GS1 Connect 2019 event happening this week in Denver, Colorado, we think[...]
DataPorts and Why they Matter
​Retailers today struggle with managing all of the product content necessary to publish and maintain their online product catalog. Assembling[...]
3 ways Grocery retailers can survive in the age of Amazon
3 ways retailers can survive in the age of AmazonRetail giants like Amazon’s ability to effectively address the ever-changing customer[...]
The Impact of AI on Grocery Retail
The Impact of AI on Grocery RetailIn today’s age, grocery retailers no longer have to make guesses about what customers[...]

About the Author

Leave a Reply 0 comments

Leave a Reply:


Get our best content delivered weekly to your inbox.

Sign up below to get started:

Unsubscribe anytime. Your data is stored only for business-to-business communication purposes. See our privacy policy.