Bot Boom: What is Changing in Payment Processing?

Banking CIO Outlook | Wednesday, February 26, 2020

The growing popularity of chatbots unfolds a brighter future for the payment industry.

FREMONT, CA: Banks are early adopters of most new technologies that have seen widespread commercial success. So when AI started making the rounds, banks turned to AI for smarter solutions. Here enter chatbots, promising enhanced customer experience. Today, chatbots are reinvigorating the payment landscape too. Most banks have integrated messenger-based chatbots as a part of their operational infrastructure. This rising popularity of chatbot is unfolding several potentials for payment processing.         

Chatbots usually hang out where customers do. The most popular of which are instant messaging apps installed on the smartphone. The more intelligent the chatbot becomes, the more services can be covered by messaging apps, and the more valuable the subject of payment becomes. Chatbot payment processing through messaging apps can simply store users' payment data in the messaging platform and then pay with any current payment method, like a credit card, debit card, or any other payment apps. This means that customers only need to share their payment information with a single provider. This method is already in use widely by banks.

Chatbots Top 10 Payment and Card Solution Companies - 2019 could also be designed to receive payments. To do this, the payment platform operators would have to build a chatbot app store to allow users to choose appropriate chatbots. Payments could then be processed by the platform operator using users’ payment data. It would also be possible for chatbots to replace other retailer-specific apps, and for these chatbots themselves to contain payment processing. Banks would simply use their chatbot to approach their customers and offer them a convenient way to pay.

Today, chatbots have grown to become a compelling tool for brand-to-customer communication and ensure cost reduction. Its exploding popularity unfolds an excellent future for the payment industry.

See also: Top AI-Powered Solution Companies

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