by Romain Colnet, Ingenico

Unlocking the Future of Payments: The Role of AI in Revolutionizing the Industry

In the public world of artificial intelligence, there is before and after Nov. 30, 2022: the date Chat GPT released. However, in an era characterized by rapid technological advancements, AI had already emerged as a transformative force across various sectors, including finance and commerce. 

One of the key areas where AI is making significant strides is in payment processing, revolutionizing the way transactions are conducted and managed. And among the market participants in integrating AI into payment solutions is Ingenico, a global provider of secure payment services.

The Evolution of Payment Technology

The landscape of payment technology has undergone a remarkable evolution over the years, propelled by advancements in computing power, data analytics, and connectivity. Traditional payment methods, such as cash and checks, have gradually been replaced by electronic payment systems, offering greater convenience, speed and security. However, as the volume and complexity of transactions continue to grow, there arises a need for more intelligent and efficient payment solutions.

AI-Powered Payment Solutions

Enter artificial intelligence. AI has the potential to revolutionize every aspect of the payment process, from fraud detection and risk management to customer service and personalized experiences. By harnessing the power of machine learning algorithms and big data analytics, payment providers can gain valuable insights into consumer behavior, identify patterns, and detect anomalies in real-time.

In terms of fraud prevention, the traditional rule-based systems often fall short in keeping pace with sophisticated fraud techniques. AI-driven fraud detection systems, on the other hand, can analyze vast amounts of transaction data, identify fraudulent patterns, and adapt to evolving threats with greater accuracy and speed. 

AI can enhance fraud detection accuracy by identifying legitimate transaction patterns while reducing false positives and negatives. It could also help in the near future to manage, in real time, the credit limit of customers and avoid strict rules that do not apply to every single user the same way. 

Moreover, AI enables payment providers to offer highly personalized experiences to customers, catering to their preferences and needs. By analyzing transaction history, browsing behavior, and demographic data, AI algorithms can recommend relevant products and services, streamline checkout processes, and anticipate customer inquiries, thereby enhancing satisfaction and loyalty. In fact, AI is a useful tool for improving KYC processes.

Another aspect of how AI helps payment hardware is through merchant support. The wider uses of AI (for chatbots, virtual assistants, responsive FAQs) are an easy win in innovative companies. These solutions are easily accessible and clearly improve the experience on payment terminals for merchants.

AI on the merchant side, armed with its extended data sets, will improve accounting and analysis of data in real time. AI will give advice to merchants on stock management, products to highlight or music to play to increase turnover, customer satisfaction, etc. 

AI at INGENICO LABS

INGENICO LABS is the innovation cell of Ingenico and a ”market pull” lab in opposition to a “techno push” team. Technology is never an end unto itself, but rather the right means to solve the right problem. Therefore, Ingenico has incorporated AI at different levels of business lines to solve different issues.

A concrete use case at the Labs has been to use the generative AI feature of UIZARD to create user interfaces and user experiences instantly during ideation sessions. This solution can turn screenshots into polished designs, hand-drawn sketches into wireframes, and design user interfaces out of prompts.

AI is also used by the team to gain data-driven insights. It better enables their ability to identify new revenue opportunities, demand trends, spending patterns, and areas that need improvement. 

What about working on the possibility of predicting failures on terminals and how to maintain them? AI will use its capacity to drive insights out of data to help repair centers predict the maintenance of Ingenico payment terminals and, consequently, to avoid any disruption of payments in store.

INGENICO LABS is also pioneering biometric payments with its groundbreaking solution of palm vein payment. It enables customers to pay only with their hand using their vein pattern biometry. In order to offer this solution to the vast majority of the population, AI will play a necessary role.

Last but not least: personalization and contextualization will drive tomorrow’s user experiences and user interfaces. Pillars of contextual AI require that solutions are intelligible, adaptative, customizable, and context-aware.

Payment terminals will try to act like a human would by proposing, explaining, and adapting. The partnership between humans and machines will be collaborative.

The Future of AI in Payments: 

AI today clearly shows some strong limitations, but in the meantime, it also offers great promises. As long as the expectation is reasonable and fits key purposes, AI will not be deceptive and end up improving the payment experience.

As AI continues to advance and evolve, the possibilities for innovation in the payment industry are disruptive. From predictive analytics and voice-enabled payments to biometric authentication and autonomous transactions, AI promises to reshape the way we pay, shop and interact in the digital age. 

By harnessing the power of AI-driven insights and capabilities, payment providers are poised to unlock new opportunities, drive operational efficiencies, and deliver unparalleled value to merchants and consumers alike.