At the Merchants Payments Ecosystem conference 2024, Chairwoman Anna Maj moderated a session titled “Next-Generation Technologies for Merchant Payments,” featuring a panel of experts: Bartosz Skwarczek from GZA Capital Group, Galit Shani-Michel of Forter, Bono van Nijnatten from ASOS Payments, and Francesco Burelli from Arkwright Consulting. Maj engaged the panelists in a discussion about the role of AI in merchant payments and the potential future advancements it could bring to their companies.
Galit Shani-Michel initiated the conversation by highlighting that AI can significantly enhance automation, analytics, and identity verification, urging merchants to focus on how AI can support monitoring and revenue generation.
Bono van Nijnatten, General Manager at ASOS Payments, discussed their use of AI in fraud prevention. He noted that transitioning from rule-based systems to machine learning has allowed the retailer to reduce its fraud department by an impressive 60%. He added, “The remaining team members no longer need to work around the clock. They can maintain regular business hours, and while AI aids in fraud detection, a human will always make the final decision.”
Bartosz Skwarczek referred to AI as a “double-edged sword.” He recognized its ability to streamline efficiency, support content creation, and enhance cybersecurity. However, he cautioned that AI can also make simple errors when presented with conflicting data, indicating that it has not yet reached full operational efficiency.
Maj countered this perspective, asserting that AI can only be considered ‘stupid’ when improperly programmed, emphasizing the importance of addressing biases and enhancing knowledge bases. With advancements in GenAI and better coding practices, she expressed optimism about AI’s potential.
Francesco Burelli pointed out the necessity of a strategic approach to AI implementation, advocating for proactive, human-centered engagement with employees to maximize the technology’s benefits.
Van Nijnatten highlighted ASOS’s introduction of an AI stylist, which personalizes shopping experiences by recommending clothing and accessories tailored to various occasions.
Skwarczek reiterated the importance of incorporating a human element into AI processes. He explained how AI solutions had streamlined chargeback and dispute processes, allowing his team to focus on critical aspects of their work.
Shani-Michel emphasized that while AI provides complex solutions for fraud management, it cannot single-handedly resolve all of a company’s challenges.
In a keynote entitled “Trust is the New Gold,” Chris Reid, EVP of Identity Solutions at Mastercard, examined the evolution of cybercrime alongside emerging technologies. He explained that online fraud markets have become sophisticated, supported by various supply chains including the production of counterfeit identity documents. Reid mentioned that the quality of fake passports and licenses has improved significantly, with fraudulent bank accounts available for sale on the dark web.
He emphasized the need for businesses to cultivate trust within their payment systems while adapting insights gained from observing fraudulent practices online, ultimately fostering sustainable growth in commerce and merchant payments.
In another keynote session titled “From Cost Reduction to Revenue Generation,” Shani-Michel discussed the applicability of AI in fraud detection and payment solutions. She found that many companies were not yet leveraging AI for this purpose. Shani-Michel cited statistics indicating that negative experiences with false declines could deter customers from future purchases, underlining the importance of a seamless customer experience.
She reiterated that AI can accurately identify fraudulent actors by analyzing the identities behind transactions, thereby facilitating a smoother process for customers. Emphasizing the need to understand issuer behavior, Shani-Michel advocated for the automation of payment testing to determine optimal transaction processes.
Concluding her remarks, she encouraged companies to ask the right questions and utilize the proper tools to obtain swift insights, allowing them to effectively address issues rather than merely analyze data. She warned that staying ahead of fraudsters is essential to maintaining a competitive edge.