AI-related payments experienced a staggering 1,170% increase annually from 2022 to 2023 among corporations.
A new report published today by our platform reveals a surge in interest among payments companies in utilizing Artificial Intelligence (AI) to transform their products and services. The analysis indicates that 75% of the 16 companies surveyed mentioned AI at least once during their 2023 earnings calls, marking a 1,170% year-over-year increase in AI mentions between 2022 and 2023.
The report highlights that the focus of AI applications in the payments industry is shifting towards future projects related to productivity and cost gains. Generative AI saw the biggest uptick of mentions, with 75% of companies discussing it at least once over the course of 2023. Most mentions of generative AI were concentrated in Q4 of 2023.
Paypal mentioned AI the most frequently, discussing the technology across all four earnings calls in 2023 with a combined total of 29 mentions. Square and Cash App owner Block came in joint fourth with payments processor Worldline for AI mentions, while Mastercard came in second and Visa closely followed in third.
The report also emphasizes that payments companies are increasingly interested in utilizing AI to develop better products, increase productivity, and improve security measures. However, it does not provide specific details on the types of future projects related to productivity or cost gains that payments companies are planning or any new findings on the applications of AI in customer service and experience improvements.
The report also notes that companies are embedding generative AI-powered chatbots and virtual assistants to resolve payment queries in real time, reducing response times and improving user experience. Moreover, AI-driven predictive analytics and real-time data processing enable payment systems to handle higher transaction volumes with minimal latency, crucial for scaling operations.
However, the report does not indicate whether the interest in AI is a buzzword fad or a long-term trend. Lucy Ingham, Editor-in-Chief and Head of Content at the platform, suggests that the interest in AI could be a real disruptive technology for the industry, but 2024 will determine its extent of attention.
The report also underscores the importance of responsible and ethical AI use, emphasizing fairness, transparency, and accountability to mitigate risks like bias in credit scoring and transaction approvals. This ethical focus is integral to trust building in handling trillions of dollars in transactions and is becoming a core part of industry strategies alongside AI adoption.
The report further notes that the overall fintech industry, including major payments players like JPMorgan Chase and Revolut, is integrating AI for risk management and personalized services. This AI integration supports faster loan processing, better fraud detection, and tailored customer experiences, aligning with broader market trends such as the rise of Central Bank Digital Currencies (CBDCs) that reshape payments infrastructure.
In conclusion, payments companies in 2024 are focusing their strategies on leveraging AI to streamline operations, enhance customer engagement, and responsibly scale their platforms while navigating ethical and governance challenges brought by AI technology.
Technology is playing a significant role in the plans of payments companies for 2024, as they aim to leverage artificial-intelligence (AI) to streamline operations, enhance customer engagement, and responsibly scale their platforms.
Additionally, many payments companies are integrating AI for applications such as generative AI-powered chatbots, virtual assistants, and AI-driven predictive analytics to improve user experience, reduce response times, and handle higher transaction volumes.
