Artificial Intelligence (AI) and Machine Learning (ML) are two powerful innovations of the twenty-first century. They present simple automated solutions to even the most complex of problems. The payment gateway industry is one such industry that can actively benefit from incorporating AI and ML into day-to-day activities.
Changing the Future of Payment Processing
Payment processing is a high-risk and complicated task comprising several backend processes that impact multiple variables of the whole network. With the introduction of AI and ML into the system, the entire face of payment processing is up for a massive change. Society is headed towards a future where machines would be utilized to the fullest potential. AI and ML present better and more efficient machine-dependent ways to tackle steps and challenges involved in the best online payment gateway technologies while opening up new doors that humankind couldn’t even have imagined a few years ago.
Increased automation is leading to better insights
Here are a few ways how both artificial intelligence and machine learning are improving the process of online payments.
Fraud Detection
This is one of the existing arenas of the online payment gateways industry where AI and ML are currently playing a crucial role to combat the growing instances of fraud. AI and ML take over on the lines of the pre-existing systems to upgrade them to concur with the present-day needs. Digital payments are rapidly becoming the primary mode of transaction, and as a result, their volume is exponentially rising. Being able to distinguish fraudulent transactions from genuine ones is thus a need but also a challenge of today. Moreover, this needs to be done quickly to reduce risk liability for merchants and all other customers.
Advanced pattern recognition AI technology can be utilized to monitor payment behaviours. Based on tell-tale signs of something unusual, the system can flag and automatically block out transactions. Such systems are already being used in ‘Block Mechanism’ features of major payment gateway services to block unusually high volumes or value of credit card transactions coming from a single point, which is a common sign of credit card fraud. It can also be used to filter out high traffic coming from a single location, which can be a DDoS or a brute-force attack. The system learns from the payment behaviour what signs indicate a potential fraud attack and proactively prepares a suitable plan to combat it. As days pass, AI will find itself deeper into gateways systems to recognize and prevent fraudulent attempts.
At Zaakpay, the team uses several AI tools to analyze payment behaviour to understand what could be exploited by frauds to commit data theft. Upon discovering any such loophole, it is patched immediately to offer absolute security to the customers.
Safe and Convenient Payments
AI can be integrated on several levels to make the online payment process more convenient. With chatbots or popups, the whole journey from placing the order to the checkout page can be simplified for the customers. The system can automatically point them towards the next step based on the customer’s behaviour. This way, businesses can capture more sales with easy checkouts.
Automated suggestions for related products can also boost sales. For example, a shopper purchasing a keyboard might not have thought of buying a mouse alongside it. But if the system pulls out an affordable and complementing mouse while the customer is placing the order for the keyboard, the chances are that the customer would end up buying the mouse. Based on the transaction value and the payment details already available, AI can also recommend which payment option would be most suitable. Chances of cart abandonments reduce significantly with such suggestions.
AI and ML are currently being used for fraud detection in terms of safety. They can also be used for better and improved customer verification. For example, Address Verification System (AVS) is a tool used in collaboration with an online payment gateway to request the billing address of the customer before processing a transaction. This is then matched with the issuing bank’s records, and the processing completes only upon successful verification. This prevents fraudulent card transactions as a fraud won’t know the customer’s billing address even upon getting access to the credit or debit card.
Better insights
Customer data and insights are crucial to making informed business decisions. In the current scenario where competition is at its peak, a single mistake can cause businesses several lakhs of rupees. Zaakpay provides its merchants access to the best online payment dashboard with all transaction details. Merchants can analyze this data with relevant software to draw inferences necessary to business decisions. For example, merchants can find out the most active shopping period from the purchase trend and launch campaigns or rewards during that time. They can also figure out factors that lead to cart abandonment.
Moreover, these reports can also be used to make business operations more efficient. By connecting the gateway with accounting or management software, bookkeeping, record maintenance, and inventory management can be automated. This quickens the processes and reduces labour and administrative expenses for the business. Not to mention, there has been a sharp reduction in errors due to human inefficacy. Better coordination among the different business verticals can also be set up using AI and ML.
Conclusion
As discussed above, AI and ML hold the key to revolutionizing the payments industry. By capitalizing on their offerings, merchants can provide the best possible experience to their customers, benefiting from the increased revenues. Zaakpay is a consistent partner in this journey of the merchants. It is India’s best online payment gateway service with a flexible pricing and tangible range of features explicitly customised based on what the merchants need now. They will need AI and ML to make a deeper percolation in the industry.
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