• Dwaine Thomas, Deputy Chief Operating Officer at PXP Financial


• 26.11.2024 09:45 am
#AIinPayments #RetailAutomation

Each year, the surge in consumer spending during peak shopping events like Black Friday and Christmas cause challenges for merchants who are rushing to process high transaction volumes efficiently while maintaining a seamless customer experience. To shed light on how new technologies such as artificial intelligence (AI) and automation in retail payments are transforming the Golden Quarter, Dwaine Thomas, Deputy Chief Operating Officer at PXP Financial, shares his thoughts. 

From personalised shopping experiences to predictive analytics and supply chain optimisation, AI is helping to reshape how businesses engage with consumers, optimise operations, and drive growth. As well as offering retail merchants unprecedented opportunities to enhance efficiency and remain competitive, AI helps businesses to meet growing consumer expectations for new ways to shop in the digital age. 

Crucially for the Golden Quarter period, AI can help to reduce cart abandonment, using data analysis to predict when a user is likely to abandon their cart. It can then trigger personalised interventions like sending reminders, offering discounts, or suggesting alternative payment options to encourage customers to complete their purchase.

AI can also analyse which payment options are most preferred by users and optimise the checkout flow to offer those options first, as well as optimise cross-border payment processes by automating currency conversion and ensuring compliance with local regulations. Security is also a consideration, with AI in payment systems able to continuously monitor transactions in real time to identify any inconsistencies, errors, or fraud attempts. Ultimately, all this reduces friction in international transactions and provides users with a smoother experience.

The role of automation

While AI is changing how consumers view the retail landscape, automation technologies are transforming back-end payment operations. Not only can automation ensure payments are routed through the most efficient and cost-effective channels in real time, but automated systems can also support back-office operations to optimise the processing of large volumes of payments during the Golden Quarter. 

Crucially, automation streamlines the reconciliation process by matching transactions from payment gateways, acquiring, and bank statements with internal records. Put simply, the efficiency introduced and time saved by using automation technologies helps merchants to stay competitive and prepared for the future.

Next generation chatbots

Chatbots are a form of AI that can enable superior operational efficiency during this crucial retail period. The main benefit of advanced chatbots is their ability to deliver instant, round-the-clock support. Shoppers often have urgent questions about product availability, return policies, or shipping timelines, especially when making Christmas purchases. A sophisticated chatbot can handle a high volume of inquiries simultaneously, providing accurate answers without delay, reducing cart abandonment, and improving conversion rates.

But most importantly, next-generation chatbots go beyond basic Q&A, offering a personalized shopping experience. Using data on past purchases, browsing behavior, and preferences, they can suggest relevant products and promotions tailored to each user. This can prove crucial during the Golden Quarter, when consumers are more likely to be influenced by recommendations for gifts or seasonal deals.

To be better equipped to meet the challenges of the busiest shopping period of the year, retail merchants should embrace automation and AI integration to enhance personalisation, optimize operations, and create a faster and more efficient shopping experience.