As technology advances, more businesses turn to artificial intelligence (AI) to optimise payment processing, improve customer service, and reduce costs.
AI significantly impacts merchant services by improving authorisation rates, lowering payment processing fraud, and increasing chatbots’ effectiveness in answering queries. Although, whether the benefits from lower payment processing costs will be passed on to merchants remains to be seen.
James Yerkess, Partner at Bankbrokers UK and Ireland, explores how AI has the potential to reduce costs for payment processors significantly. As AI continues to develop, it will likely have an even more substantial impact on the payment processing industry regarding payment routing, forecasting and automation.
This includes topics with examples and recent developments from Paypal.
– Payment optimisation and routing
– Predictive analytics and forecasting
– Process automation and efficiency
– Risk assessment and credit scoring
– Fraud detection and prevention
– Automated transaction reconciliation
– Customer service automation
– Personalised marketing
As AI continues to develop, it will likely have an even greater impact on the payment processing industry. AI has the potential to revolutionise how payments are processed, and it will likely lead to significant cost savings.
However, ensuring that these benefits are passed on to merchants is less clear and likely to require negotiation and benchmarking to ensure this takes place.
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