Many businesses find themselves constrained by outdated solutions and limited payment channels in a landscape where cutting-edge transaction options, driven by technologies such as artificial intelligence, are rapidly gaining traction.
Continuing to operate in the traditional manner could lead to long-term harm for businesses. Experts in the payments industry highlighted to PYMNTS this year that leveraging AI’s capabilities to enhance payment processes is the way forward.
Although the payments sector has been a latecomer to the financial technology revolution, AI holds the promise of revolutionizing operations, from customer service to back-office tasks. By automating resource-intensive procedures and endless manual reconciliations, AI offers significant advantages in optimizing workflows.
Michael Mueller, CEO of Form3, emphasized the intriguing evolution of the payments industry, noting its enduring relevance despite its longstanding presence.
Once businesses implement AI-driven process enhancements, reverting to manual interventions or sifting through data by hand becomes a challenging prospect.
Expanding Influence of AI in Payments
The immediate impact of applied AI technologies can be witnessed in streamlining routine processes within areas like accounts receivable, accounts payable, cash flow forecasting, credit assessment, fraud detection, and compliance. These applications facilitate more efficient decision-making processes that are quantifiable and prioritize security without compromising convenience.
According to Andrew Gleiser, Chief Revenue Officer at Aeropay, companies investing significantly in AI to enhance approval rates in payment processing are reaping substantial benefits. Increasing authorization rates by a mere 10% can significantly boost revenue for both the company and its customers.
Historically, digital payments lacked the depth of data required for comprehensive analysis. AI has transformed this landscape by enabling companies to derive valuable insights swiftly and intelligently from payment data.
Justin Shoolery, Head of Data Science and Analytics at Sticky, highlighted the transformative potential of AI and machine learning in the payments sector, driving improvements and fostering prosperity within companies.
Ahsan Shah, Senior Vice President of Data Analytics and AI at Billtrust, underscored the evolving nature of AI, particularly in conceptual AI, which encompasses generative capabilities like content creation, fraud monitoring, anomaly detection, and recommendations. This human-centric software complements existing technological frameworks effectively.
Smooth and error-free processes in insurance, fund management, and cash flow can enhance customer satisfaction and attract a broader clientele, as noted by Aanchal Kochhar, Head of Product at Capital One Trade Credit. The integration of AI allows for significant room for expansion and innovation.
Establishing Trust in AI for Future Success
PYMNTS Intelligence reports a growing interest in AI-enabled shopping experiences among Generation Z and millennial consumers. Businesses incorporating AI technologies can realize immediate benefits in customer support, sales, marketing, and anomaly detection in payment processing.
Karandeep Anand, Chief Product Officer at Brex, emphasized the dual monetization opportunities in digital payments: optimizing fund management efficiency and enhancing payment effectiveness. The ability to streamline financial operations and save substantial man-hours during quarterly financial closures is invaluable.
Emily Glassberg Sands, Head of Data Science at Stripe, highlighted the potential for creating user-centric products and enhancing customer satisfaction through AI-driven innovations.
As the world transitions towards innovations like real-time payments, AI’s rapid processing capabilities will be crucial for automation and fraud prevention. However, businesses must invest in data and technical infrastructure to effectively leverage AI, necessitating workforce alignment and skill development to operationalize AI models successfully. Addressing concerns regarding data privacy, compliance, and governance is paramount in the AI implementation process.
Amir Wain, CEO and Chairman of i2c, cautioned against hasty adoption of AI technologies, emphasizing the importance of a collaborative approach and ethical considerations when handling sensitive financial data.
Beerud Sheth, CEO of Gupshup, stressed the importance of precision, relevance, and goal-oriented implementation of AI in business contexts, ensuring consistency and accuracy in decision-making processes.
While AI applications in payments continue to evolve, they hold immense potential for enhancing payment workflows, especially in emerging areas like in-car purchases and next-generation transaction experiences.
Drew Edwards, CEO of Ingo Money, highlighted the pivotal role of payments in the artificial intelligence landscape, particularly in scenarios where human interaction is limited, such as in connected cars. AI tools can analyze data effectively, but human involvement remains crucial in decision-making processes.
Tony Wimmer, Head of Data and Analytics at J.P. Morgan Payments, emphasized the enduring role of humans in conjunction with AI technologies, underlining the symbiotic relationship between advanced software solutions and human expertise in the payments sector.
Jake Joraanstad, CEO of Bushel, predicted a rapid acceleration in AI development within the payments industry, urging a balanced perspective on the timeline for AI advancements and their practical implications.
