Unlocking the immense potential of artificial intelligence (AI) in the payments industry requires addressing consumer awareness and comfort, as emphasized by global payments platform, Paysafe.
According to Paysafe, a worldwide payments platform, addressing consumer awareness and comfort is essential to maximizing artificial intelligence’s (AI) enormous potential in the payments industry. Although artificial intelligence (AI) frequently faces unfavorable criticism, including claims that it will replace jobs and associations with the sci-fi Skynet from the Terminator film series, Paysafe is of the opinion that the technology can have a positive impact.
Paysafe’s most recent study revealed that 86% of consumers have misgivings about using artificial intelligence (AI) for payments. Only 14% of consumers worldwide presently use AI-driven payments technology, and while consumers are generally willing to adopt the technology (at 10%), 17% are completely unwilling.
Fear of payouts from AI
Paysafe, however, discovered that one of the factors preventing wider implementation of the technology was a lack of understanding of it. One of the main reasons people don’t trust AI, according to 24% of respondents, is that they don’t know what protections are in place to prevent their data from being misused. While 35% claimed they simply lack the knowledge necessary to feel comfortable using the technology.
Some consumers were able to recall using instances from everyday life, such as AI-powered checkouts (26%), smart wallets (32%), or payment chatbots (31%). About one-third of customers said they know a fair amount or a lot about applications when asked how aware they are of how merchants are using AI. For instance:
- discovery of fraud (35%).
- Customer risk assessment (33%).
- Consumer preferences (36%).
- enhancing customer experience with payments (36%).
“With the very immediate and significant impact of AI that we’ve seen in recent months, it’s understandable that consumers would have concerns about using such technology at the checkout,” said Rob Gatto, chief sales officer at Paysafe.
“It is essential to raise customer knowledge of and comprehension of AI-driven payment technology in order to promote wider use. In order to remove those hurdles, payment service providers and merchants will need to inform users about the advantages of AI-driven payments, such as improved experiences, convenience, and security. It is essential to explicitly address privacy and security issues, as well as to increase consumer awareness of the use of AI for risk-scoring, fraud detection, and personalization.
Other payment options
Comfort is essential when utilizing technology. It has little chance of surviving if a consumer doesn’t comprehend it, especially if they can’t trust it. Alongside the growth of AI payments, augmented reality (AR) and virtual reality (VR) payments have also soared. However, because customers understand them, they seem to be more common than AI payments.
Only 12% of consumers believe they would not use AR or VR to make purchases owing to security concerns, despite the low adoption rate of 3%. In fact, consumers claimed they could see themselves utilizing VR (27%) and AR (28%) the more widely the technologies are made available. When it comes to paying for something in the metaverse, 26% of respondents echoed similar sentiments, expressing their shared feelings.
Gatto continued, “Consumer understanding and comfort seems significantly less of a barrier to acceptance when it comes to AR and VR payments. We could witness a rapid development in mixed reality commerce once the technology is more generally available because tech companies are putting such a strong emphasis on this field and new headset releases are coming in the market.