Payments Intelligence: How Can E-commerce Merchants Use Data & AI to Improve Payments

Data and Payments Intelligence(IQ)

The rapid growth of digital payments and e-commerce has created tons of data. Data that can be used smartly to make better decisions for your company. Data is currency; it is the new energy. And it is everywhere – how you use it can make a big difference to your business. Business is no longer a one-way street – from a brand to the customer. Rather it thrives on a dual exchange. The best brands are those that understand and engage well with their customers. They always stay ahead of the pack – new trends, new tech, new policies. Payments intelligence is about how you use data to improve your payments. It is about how you increase the IQ, if you will, of your payments systems. And how smartly you mine, co-relate, and visualize this data can make or break your business.

Why Payments Intelligence for Business?

Payments intelligence gives you useable insights. Here are a few ways how they aid e-commerce payments:

• Gives you a clear picture of all aspects related to your finances, including cash flow, payment reconciliation, fraud and risk assessment, and improve how your business performs.
• Helps you review transactions with accuracy, improve efficiency, and speed up your payments.
• Helps you discern payment trends, customer habits, and local market patterns.
• Helps you analyse transactions and past history to improve payment settings and offer personalized services to customers.
• Helps you make strategic decisions, reduce costs and boost margins.

How to Improve Your Payment intelligence with AI tools

AI and machine learning tools help you reap the benefits of data. If you are looking to enhance the payment IQ of your business, here are a few ways you can get started:

1. Advanced analytics to improve payments + engage customers
AI and analytics help you look at data from across all business functions. They give you a closer look at your sales and show you how engaged your customers are. You can gain insights into payment trends, customer behaviour, and historical data. You can use this data to develop personalized products and services for your customers. As such, you can increase customer satisfaction and retention. Analytics helps you track failed payments. It looks into the payment history of shoppers and suggests other payment options to them, such as a pay-by-link. Thus, it helps reduce churn and improves customer delight. Brands realise this, as research from McKinsey shows. Merchants are willing to pay up to 30% more for better payment analytics.

2. AI-based risk management to keep fraud at bay
AI-based risk management tools use data to safeguard your customers and your brand. AI tools use analytics and machine learning to sift through data and perform precise risk analysis. They help you define rule sets based on your business risk levels. Ai-based tools constantly use data to learn and improve. This helps you build a robust risk fraud prevention setup that works in real-time. You can detect fraud patterns by analysing your customers’ payment history and earlier events of fraud. This helps you tackle fraud cases promptly when they arise.

3. Automated AP/AR for timely billing and payments
Automating your accounts receivables and payables helps you look deep into your payments data. You can correlate data from across functions and get meaningful insights from it. Access to richer data lets you fix delays quickly and streamline your payments. You can process a large volume of payments with higher accuracy and lesser errors. You can reconcile payments easily and on time. Tapping into payment data improves your debt collection and dunning process. Your systems can analyse payment history, and send out automatic reminders, activate retries, or suggest alternate payment methods. Using AI tools to track payment data helps you pre-empt changes in user payment details and automatically update them to ensure zero failure. This removes friction and ensures a smoother user experience.

How can Novalnet help?

We are a global PSP with deep experience in processing payments for the European industry. Many of Europe’s leading brands trust us to handle their payments. We can help you accept payments seamlessly in 125+ currencies in 150+ country-specific payment methods. Our instant plug-ins get you up and running within minutes and with minimal coding. With our AI-based risk management solutions and advanced analytics, you can securely process payments in a PCI DSS-compliant environment.
Give us a call today to know more about how we can help with your payments and enable you to become the best in your game.

Jose Augustine

Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.