Smart routing, better results: How AI is revolutionizing payment authorization

Artificial intelligence is poised to contribute up to $19.9 trillion to the global economy by 2030, driving progress across many industries. One area experiencing significant transformation is payment optimization, where AI is enabling businesses to make better real-time decisions and increase payment conversion. This means improved results for both merchants and customers.

The need for flexibility

We previously highlighted the hidden cost of declined transactions – missed revenue opportunities, damaged customer relationships and operational inefficiencies. Many declines stem from rigid, rule-based systems designed to prevent fraud. These systems can lack the flexibility to identify legitimate transactions, which can often backfire and lead to false declines.

As consumer expectations evolve, the one-size-fits-all approach is no longer sufficient. Merchants are looking for smarter ways to optimize the payment journey, seeking higher approvals with minimal friction and cost. AI – increasingly integrated into our daily lives – is enhancing payments performance, too. It helps merchants accurately interpret complicated data sets and nuances fundamental to achieving optimal results.

Game changer across industries

AI is revolutionizing industries by offering personalized shopping experiences, powering recommendations, and improving customer interactions and support. In the payments sector, AI's impact is substantial:

• Smooth consumer experiences: Speed, convenience and personalization are now standard demands. By enabling quicker authorizations, AI can improve conversion rates and reduce friction in the payment process.
• Sophisticated fraud prevention: AI employs predictive analytics to detect emerging patterns and adapt in real time, resulting in faster and more secure transactions. According to Juniper Research, global losses from online payment fraud are expected to exceed $362 billion from 2023 through 2028, with $91 billion of that in 2028 alone. AI’s ability to prevent fraud proactively becomes essential to safeguard merchants from rising threats and financial impact.
• Simplifying complexity: AI can analyze vast amounts of transaction data in real time, allowing for decisions tailored to each payment. This adaptability makes every transaction count, improving authorization rates and payment efficiency.

Improved decisions, now and tomorrow

AI evaluates a wide range of factors, such as transaction data, consumer preferences and device information – even across multiple devices – to make informed recommendations about individual customers and transactions. By treating every transaction as unique, the whole process becomes more dynamic and improves the likelihood of successful authorizations. Beyond this, AI can determine the most efficient route for transactions through the best-performing networks or financial institutions, balanced with cost-effectiveness. These smarter choices can have a huge cumulative impact on payment efficiency and, of course, on your bottom line.

The benefits of harnessing AI are greater than making the best decisions for today. AI continuously learns from the data it analyzes, identifying repeated behaviors and adjusting automatically for a future-forward approach. This stops threats before they can cause harm, getting you ahead of what’s coming next.

Optimal treatment for every transaction

At Worldpay, we combine the power of AI with our expertise to optimize payment performance. Our solutions deliver tangible results, with Worldpay clients achieving an average savings of 28.2% through dynamic debit routing.

This intelligent approach not only enhances approval rates and reduces fraud but also delivers better outcomes for businesses and their customers.

As businesses continue to adopt AI, they can expect enhanced performance, reduced fraud, and increased revenue opportunities. The future of payments optimization is here, powered by AI, spearheaded by experts like Worldpay.

• Learn about our optimization solutions.