Acquiring banks face a profitability challenge: Just 53% of the merchants they have on their platforms are turning a profit. The rest of their merchant accounts often wind up losing revenues to fraud, low transaction volumes and credit losses, while others just close out before they have the chance to transact enough to turn a profit.
Artificial intelligence (AI) has emerged as one of acquiring banks’ most essential tools in the fight to curb profitability challenges, but are acquiring banks making the most of it?
AI In Focus: Gaining Ground On Merchant Monitoring, a collaboration between PYMNTS and Brighterion, a Mastercard company, provides an overview of how AI factors into acquiring banks’ merchant monitoring strategies. We surveyed 104 executives at acquiring banks across the United States to learn about the concrete ways in which AI systems have enhanced this aspect of their business and their plans for expanding AI usage in the future.