The Intersection of AI and Ecommerce Payments
To streamline online sales, experts recommend reducing friction and increasing the efficiency of the checkout process. For this reason, integrating AI in e-commerce payments is becoming essential for businesses that seek to stay competitive, as this technology is disrupting the consumption by enabling fast, secure and independent payment processing techniques. It can also help companies address a growing problem in e-commerce: fraud.
E-commerce is expected to grow sharply in Mexico in the coming years, with projections indicating that 16.5% of retail sales in the country will be made via e-commerce by 2026. This puts Mexico ahead of all other countries in the region, with the exception of Brazil, in terms of e-commerce sales.
As retailers in Mexico look to capitalize on this trend, AI will undoubtedly play a key role in enhancing the customer experience and driving sales growth, especially when it comes to e-commerce payments. While many fear that AI will replace human beings, others say that this technology will help and improve lives. Stripe, a leading payments company, can help organizations leverage the benefits of AI.
“Stripe is helping AI companies differentiate. It is improving customer support, creating better experiences for developers and boosting fraud prevention. For example, OpenAI’s ChatGPT premium subscription uses Stripe Billing and Stripe Checkout,” says René Salazar, Head of Partnerships LATAM, Stripe.
Machine learning and AI offer great solutions for fraud prevention as they continuously learn from millions of global businesses that process payments. For example, Stripe’s Radar assigns risk scores to every payment and automatically detects and blocks fraudulent transactions.
Troublingly, fraud has grown alongside online sales, particularly in Mexico. Stripe is also assisting users in mitigating fraud. “Every US$1 of fraud costs businesses US$3.3 due to operation burdens. Just think about how much personnel you have to hire to answer to clients in response to chargebacks or similar issues,” says Salazar. Stripe’s recommendation engine dynamically presents the appropriate payment methods to buyers based on their country. Stripe has also improved its authorization rates by 2% and reduced fraud by 8%
There is a revolution taking place in technologies like Large Language Models (LLMs), which could reduce 37% time in writing task, says Salazar. What is next for AI applications in payments is the creation of a business coach using LLM. Stripe is working to develop this technology under the name Sigma, which is expected to identify the client’s transactions to give a financial situation report, he adds. Furthermore, this technology will be able to give insights of the financial situation of the client’s company.