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Insights and Expertise

AI-powered routing is payments to the acquirer best suited for the transaction.
One of the most important benefits of smart routing is that
the new game-changer companies have full control over these predefined routing
rules.

in payments They can set parameters based on what matters most to their
business, such as cost efficiency or approval likelihood.
Here's how smart routing customizes transaction routing
based on individual business needs:
• Cost optimization: Routes transactions to the acquir-
er with the lowest interchange fee to minimize costs.
• Higher approval rates: Directs transactions to acquir-
ers more likely to approve payments, ensuring a more
efficient and smooth customer experience.
• Segmentation and scalability: Facilitates routing
between multiple acquirers and configures volume
By Khalil Kammoun percentages flexibly, which aligns with a company's
Worldline unique organizational needs.

he global digital payments market is revolu- These customizable options make smart routing an
tionizing commerce at an unprecedented rate. invaluable tool across different channels, vertical markets
By the end of 2025, the total transaction value is and geographic regions. It not only simplifies payment
T expected to reach an astounding $20.09 trillion, processing but also automates decision-making to
further emphasizing the significance of digital transac- optimize outcomes in an increasingly dynamic digital
tions in the global economy. payments landscape.

This surge in digital payments compels businesses AI elevates smart routing efficiency
to seek out efficient methods to increase transaction While rule-based routing solves many inefficiencies
approval rates while optimizing costs. This is where AI- in payment processing, integrating AI takes smart
powered routing comes in—a cutting-edge advancement routing to an entirely new level. The combination of AI
in payment processing technology that helps companies algorithms and machine learning refines decision-making
maximize transaction efficiency and revenue. by analyzing historical and real-time data from past
transactions to predict the most effective routing paths.
For businesses, choosing the right acquirer for every
transaction is a critical yet complex process. Poor routing • Enhanced authorization rates: AI-powered systems
decisions can lead to higher costs, an increase in declined learn continuously from transaction patterns,
transactions and ultimately reduced revenue. With increasing the likelihood of successful payments.
millions of transactions processed every day across Companies benefit from fewer declines due to
multiple sectors, the need for an intelligent and cost- incorrect routing and experience smoother, more
effective payment routing system has never been greater. efficient processing overall.
• Data-driven decision-making: By capitalizing on
AI-powered or smart routing is a game-changing solution. historical transaction data, AI achieves unparalleled
By leveraging multiple routing mechanisms and advanced precision in routing decisions, ensuring optimal
artificial intelligence (AI), it precisely identifies the best efficiency for every payment processed.
acquirer for each transaction, ultimately reducing cost
and improving operational efficiency. For businesses, this • Seamless, predictive payments: AI's ability to
evaluate multiple variables simultaneously ensures
means unlocking new revenue streams while simplifying
the complexities of modern payment processing. the smoothest and most reliable transaction processing
path, irrespective of external or unforeseen factors.
What is payments routing?
With AI analysis enhancing transaction routing at every
At first glance, payment processing might seem stage, businesses experience improved approval rates,
straightforward. However, it is anything but. Payment reduced risk of transaction failures and optimized
providers face a multitude of intricate decisions that operational workflows.
determine the route a transaction will take before its
approval. This is where AI-powered or smart routing can Key benefits of AI-powered routing
really make a difference.
AI-powered routing offers not just high-efficiency payment
Smart routing is an intelligent payment decision engine. It processing but also tangible business benefits tailored
applies predefined criteria to transaction data and directs for modern commerce. Some of the key advantages of
implementing smart routing technology include:
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