Artificial intelligence has been a highly relevant topic in recent months. The generation of texts with ChatGPT, or the application of this new technology to other sectors such as education, is also extending to a new understanding of artificial intelligence applied to the payments sector.
Félix Uriarte, Chief Strategy Officer of Sipay, reveals the four advantages of artificial intelligence to facilitate and make digital consumption processes more flexible:
- Next best offer: This is one of the most popular applications and consists of making product recommendations based on each consumer’s profile and their purchasing behavior compared to the group, which is very effective at boosting sales. This functionality, which we know especially from streaming platforms, is already being used in consumer processes and even in the banking sector.
- Next best action: This approach relies on predictive analytics tools and uses machine learning algorithms applied to historical consumer data and purchase history to identify the optimal time to offer a deal to each customer. It is particularly useful for achieving general objectives such as customer loyalty and improved satisfaction.
- Payment method optimization and security: Thanks to artificial intelligence, the system selects the most suitable payment method at any given time. A good example is card transaction routing, which involves accepting a card based on the issuing bank, amount, and time of day, among other variables. Acceptance rate differences can be significant due to system inefficiencies (inadequate fraud filters, outdated card limit management, etc.). Additionally, it streamlines the process and improves security through real-time fraud analysis, risk scoring, and other features.
- New payment processes: In addition to dynamic pricing based on data, such as the number of purchase attempts or the terminal used by the buyer to browse an ecommerce site, in the sector we are working on “dynamic payment” which consists of detecting opportunities to boost sales with, for example, installment payments and other alternatives.
“Payment methods are becoming increasingly important for business efficiency precisely because of the application of artificial intelligence. For example, at Sipay we are working on creating tools that analyze the outcome of a payment transaction in real time to manage alternatives in case of denial for non-critical reasons,” says Félix Uriarte.
