Modern payment processing systems play a vital role in shaping the customer experience. Now that buying something is as simple as a swipe up on your phone, customers have become digitally savvy when it comes to payment processing. They expect that when they purchase something from a company using digital tools, their processing system will be fast, offer real-time authentication of their payment, seamless payment routing, and an efficient dispute resolution process, too.
This can be a challenge for small to mid-sized businesses that rely on third-party systems. Business owners must choose between paying for the premium payment processing system to offer the best customer payment experience or a cheaper system that may frustrate them. It’s a challenging choice, but a new technology may soon make business decisions easier.
AI technology is rapidly transforming the payment processing landscape, and payment processing platforms are using this new technology. New systems with AI capabilities are coming to market, and they will have enhanced processing capabilities, including:
- Customer personalization by analyzing past customer buying trends for patterns
- Fraud detection is done by analyzing data for large or out-of-the-ordinary transactions
- Automating manual payment processing tasks like scheduling payment for invoices based on past due dates
- Performing financial risk assessments by analyzing spending patterns and cash flow and monitoring transaction and credit history
- Integrated AI chatbots for customer service
AI challenges to overcome
While AI capabilities are outstanding, that doesn’t mean payment processing systems wouldn’t face challenges integrating them. Two significant obstacles arise regarding AI and payment processing: privacy and bias.
AI systems learn by accessing and analyzing large volumes of knowledge. For payment processing systems, this can be a bit of a problem. For AI to thoroughly analyze financial records, it needs access to an extensive history of data, which could be a privacy or regulatory violation. Additionally, AI systems need constant access to financial data, and the information they analyze and present could be outdated or biased. Both of these concerns represent a significant challenge for payment processing software systems to overcome if they plan to integrate AI.
While AI is poised to transform the payment processing industry, it’s still developing. AI tools will likely be integrated into every system in the next few years, and companies that embrace the capabilities of AI in their payment processing will come out ahead. However, it’s still important to be cautious and aware of the challenges and limitations of using AI for payment processing. So, if you’re looking for a payment processing system that enhances the customer experience, consider one with AI capabilities.
