AI Improves Payments Orchestration with ‘Smart Logic’


Artificial intelligence (AI) is poised to revolutionize the landscape of payment and commerce, offering transformative potential across various sectors within financial services. Andy McHale, Spreedly’s senior director of product and market strategy, underscores the profound impact of AI and machine learning on enhancing efficiency and identifying patterns that human capabilities alone cannot achieve.

McHale emphasizes the role of machine learning and AI in expediting calculations and discerning intricate patterns and strategies that may elude individual or team-based human efforts. He suggests that the sheer scale of data and complexity of transactions necessitate the intervention of AI-driven algorithms to optimize processes effectively.

Moreover, McHale predicts that the benefits of AI and machine learning technologies will manifest predominantly in the passive components of finance, rather than in consumer-facing activities. With the advent of open data and open banking initiatives, McHale underscores the critical importance of AI in bolstering fraud prevention measures and ensuring secure data transmission.

In particular, McHale highlights AI’s potential to streamline consumer experiences by reducing authentication hurdles and minimizing friction during payment transactions. By leveraging AI, financial institutions can enhance the security of commerce transactions while simultaneously optimizing the user experience, ensuring a seamless and hassle-free purchasing journey for consumers.

As a payment provider, McHale envisions AI playing a pivotal role in payment orchestration, empowering financial institutions and acquirers to optimize transaction routing methods. AI-driven intelligence enables organizations to achieve optimal acceptance rates, mitigate fraud risks, and manage expenses associated with transaction fees more efficiently.

Furthermore, AI’s real-time analytical capabilities offer significant improvements over traditional transaction routing procedures. In the event of network failures, AI-powered analysis can swiftly redirect funds to backup systems, enhancing reliability and resilience in payment processing. This represents a marked departure from conventional routing protocols governed by manual rules and rigid workflow engines.

In conclusion, the integration of AI and machine learning technologies holds immense promise for transforming the payment and commerce landscape. By leveraging AI-driven insights, financial institutions can enhance security, streamline operations, and elevate the overall consumer experience. As the fintech industry continues to embrace innovation, AI will undoubtedly emerge as a cornerstone technology, driving unprecedented advancements in payment orchestration and beyond.