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Merchants face a wide range of challenges as they com- Real-time analytics help banks make better decisions in
pete for and try to retain customers. Many such challenges their relationships with merchants.
stem from the rise of ecommerce and more recently social
commerce. Other challenges arise from the continued dis- While AI is not a panacea to cure all the ills of the pay-
ruptive effects of the COVID-19 pandemic. A key strategy ments industry, it does address several issues that have
for attracting and retaining customers is optimizing the hindered creation of a better experience for merchants,
customer experience whether the transaction is online or banks and consumers alike. Faster decision making, more
in a brick-and-mortar location. accurate decisions, enhanced flexibility and increased
personalization all lead to a more responsive payments
By accelerating transaction monitoring, merchants can industry.
approve payments more quickly and avoid keeping cus-
tomers waiting, as well as reduce fraudulent activities. However, as with any powerful technology, there need to
Retailers can automate or dramatically streamline check- be guardrails to protect the entities AI is deployed to serve.
out, which can help in-store customers avoid queues and That will be the subject of my next article. Like in many
help all customers check out faster. Improved transaction other areas, we will witness a rapid evolution of payment
analysis facilitates offering customers personalized pro- services through AI transformation and Web 3.0 adoption
motions, often in real-time before they check out, to fur- (blockchain rails) and rapid development of new payment
ther drive sales. solutions compared to the revolution the payments indus-
try faced in the early 2000s.
Banks and merchants have periodically had difficult work- Victor Orlovski is the founder and managing partner of R136 Ventures,
ing relationships. AI can help banks make the engagement an investment firm targeting mid- to late-stage startups with a focus on
more frictionless by offering new banking solutions that
protect merchants from fraud as well as streamline the the United States, Israel and Dubai. He is recognized for his expertise in
payments process. It also arms banks with the requisite fintech, ML, AI, IoT, marketplaces and high-performance IT platforms.
information to provide credit assessments more quickly Victor authored From Rhino to Unicorn: How Fortune 500 Companies
and accurately, assisting with better lending decisions. Can Evolve for the Digital Era, a book that sheds light on the challenges
of digital transformations in the business world. Contact him at victor@
r136.vc.

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