How Artificial Intelligence is Shaping the Future of Online Payments

As the VP Product of SafeCharge, that’s been always committed to innovation and creativity, I have to constantly research and be acquainted with technology innovation and trends and assimilate them in our payment solutions. Artificial Intelligence and Machine Learning are two of the main directions that technology is heading to. So, When Fintech Circle approached SafeCharge to write a chapter about the future influence of AI and MI on payment technology, in their new AI Book: The Artificial Intelligence Handbook for Investors, Entrepreneurs and FinTech Visionaries (available now in Amazon), I was happy to contribute my insights.

Artificial intelligence operates as part of your everyday life, whether you know it or not. Your internet searches, your mobile assistants and your shopping, all function at least in part based on the deep learning processes that make AI work. More and more, digital payments rely on these processes as well.

Every payment transaction in your business contains reach information about the payer. If a business uses a payment system with AI or ML technology, this data can be leveraged into income growth, fraud detection and an overall business streamlining and even more important – conversion optimisation.

When you understand the role AI plays now, it becomes clear that it will only play a larger part in payment processing in the future.

Fraud prevention
Today’s fraud detection software already employs artificial intelligence to detect and respond to payment patterns. It flags irregularities in the number of payments made, the source of the payments, and the timing of the transactions occurring. As more accurate data emerges for your business and your industry, the ability to detect these potential problems will only increase. And scoring each transaction with fraud probability

AI functions by applying data analytics to both individual patterns and broader market-based transactions. The technological potential has grown exponentially in recent years, and continued refinements will help make every transaction safer for the customer and the merchant alike.

Optimising Funnels and Conversions
A payments system with ML and AI technology can use smart routing system that intelligently calculates various parameters and routes transactions to specific acquirers to maximize approvals. The Smart routing and payment acceptance optimisation improve the payment processing time and the user-experience, and eventually encourage his loyalty to the business. Maximize approval rate, reduce cost, mange CHB fraud ratio is a smarter way – All embed in the routing optimization target function

A Better Understanding of Customers
This learning does not stop at fraud prevention and conversions. More websites than ever use chatbots and other AI applications to deliver a personalized, streamlined experience focused on individual users. ML can predict customers’ behaviour and convert this data to improve websites, adds, campaigns and even future trends. If it can do this much for brand new visitors to a website, consider just how much it can personalise customers’ financial experience with the data financial organizations collect.

As AI and ML understanding and deployment continue to surge, you do yourself a disservice by not investing in the technology and apply it to your business payment system. In the chapter Big Data, AI and Machine Learning: How to Unlock their Potential in the New Payment Environment, I wrote for The AI Book, I explain in details, how you can optimise your business payment system using AI and ML.

It’s time to plant the seeds. Fix your business plans on the future and start developing your capabilities now.

About the author:
Omri Dubovi, VP Product Management, SafeCharge, a Nuvei company
In his role of VP Product Management at SafeCharge, Omri is responsible for driving the company’s product strategy, enhancements and deliverables. Omri manages key projects and is in charge of delivering creative and innovative services and solutions to correspond to the growing needs of various business models as well as align with SafeCharge’s growth strategy in business and technology aspects. Prior to joining SafeCharge, Omri has served in the payments space for 7 years, starting as a BI analyst and developer then moving upward to product and managerial positions.

ENJOYED THIS POST? SHARE THE LOVE

SafeCharge Limited is an Electronic Money Institution authorised and regulated by the Central Bank of Cyprus and is a principal member of Mastercard, Visa and Unionpay International (CUP). SafeCharge Financial Services Limited is authorised and regulated by the Financial Conduct Authority as a Payment Institution. Both SafeCharge companies are wholly owned by SafeCharge International Group Limited.