AI in Merchant Payments: Insights from MPE 2024

The Merchants Payments Ecosystem conference 2024 delved into the role of AI in revolutionizing merchant payments, featuring a panel of industry experts moderated by Chairwoman Anna Maj, as stated in Finextra News. Bartosz Skwarczek of GZA Capital Group, Galit Shani-Michel from Forter, Bono van Nijnatten from ASOS Payments, and Francesco Burelli of Arkwright Consulting shared their perspectives on the current landscape and future potential of AI in this sector.

Shani-Michel highlighted the significance of AI in automation, analytics, and identity management for merchants. She emphasized the need for leveraging AI to enhance monitoring and revenue generation.

Van Nijnatten discussed ASOS Payments’ successful transition from rule-based fraud detection to AI-driven solutions, leading to a significant reduction in fraudulent activities. He stressed the importance of human oversight in AI-based systems, ensuring that final decisions on fraud are made by humans.

Skwarczek described AI as a «double-edged sword,» capable of streamlining operations and enhancing cybersecurity. However, he cautioned that AI is not without limitations, particularly in handling conflicting data and evolving to operate efficiently.

Maj challenged the notion of AI being «stupid,» asserting that its capabilities are shaped by programming and available knowledge. She emphasized the potential of AI, especially with advancements like GenAI and improved coding practices.

Burelli underscored the need for a strategic and human-centered approach to AI implementation, advocating for employee engagement to maximize the technology’s benefits.

The panel also discussed practical applications of AI, such as ASOS’s AI stylist, which personalizes shopping experiences, and Skwarczek’s example of using AI to streamline chargeback processes, allowing employees to focus on more critical tasks.

In a keynote, Chris Reid of Mastercard highlighted the importance of trust in combating fraud, noting the evolution of cybercrime and the need for businesses to build trusted identities in the digital realm.

Shani-Michel reiterated the role of AI in fraud prevention, emphasizing its ability to identify bad actors and enhance customer experiences. She urged businesses to leverage AI for understanding issuer behavior and automating payment processes.

The consensus was clear: AI is a powerful tool that, when strategically implemented and combined with human oversight, can revolutionize merchant payments, enhance security, and improve customer experiences. As businesses continue to innovate, AI will undoubtedly play a crucial role in shaping the future of the payments industry.

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