As artificial intelligence becomes integrated across the payments ecosystem, it’s reshaping the payments journey. Its influence extends beyond isolated improvements and efficiencies, unlocking benefits at every touchpoint and creating a new frontier for growth.
As Dennis Kettler, global head of data strategy and data sciences at Worldpay, observes: “AI is accessible to a broader range of individuals and teams, resulting in an acceleration in its application and a decrease in time to market. Additionally, the sophistication of AI has advanced significantly. Tasks that were unfeasible a decade ago, or even five years ago, are now achievable due to advancements in AI and cloud infrastructure”
According to Worldpay’s 2025 Merchant Insider Report, 98% of small businesses now use AI tools, and 40% have adopted generative AI, double the rate from the previous year.
This trend is not just about efficiency, but survival. Seventy-two percent of business executives see software innovation as critical to staying competitive. By embracing AI tools, businesses are optimizing operations and redefining what’s possible in payments – setting themselves apart from the competition.
AI Across the payment journey
AI’s impact on software-led payment platforms is profound. Worldpay for Platform’s new report identifies five key areas where AI is already making a difference:
Turning declines into approvals in real time
AI reduces false declines and streamlines authorizations by validating transactions instantly. According to a 2024 PYMNTS intelligence report, 56% of U.S. consumers have experienced a false decline in the past three months – a costly problem for merchants. AI-driven validation boosts approval rates and customer satisfaction.
From manual admin to predictive control
Traditionally, processing invoices and reconciliation have been resource-heavy tasks. AI automates matching invoices to purchase orders, flagging duplicates and recommending approvals based on user history. This is especially valuable for SaaS platforms supporting complex service industries like healthcare or field services.
Smarter defences against smarter fraud attacks
With more than half of fraud now involving AI, legacy tools can’t keep up. AI improves fraud detection by enabling real-time monitoring across thousands of behavioral signals. It also enhances know-your-customer compliance and customer due diligence, safeguarding users, and businesses alike.
Embedded solutions when they’re needed
AI recommends the right tools and features based on how merchants use the platform and who their customers are, unlocking increased value from Day 1. Employing contextual relevance, dynamic decision-making and automated workflows – optimized by AI – keep the platform experience smooth, fast, and scalable. This personalization increases customer engagement and loyalty by 25%.
Faster rollout and onboarding
Smarter onboarding makes first-time activation feel effortless, getting you up and running faster. With support, applicability, systems and data all working in harmony, problems are reduced or resolved quickly so merchants can focus on what really matters.
A holistic approach to AI
As you grow, it’s important to have a multipronged approach that includes the following:
- Build AI systems with embedded controls to meet regulations like PCI DSS and GDPR.
- Partner with payments providers who have proven AI models to accelerate deployment and ROI.
- Align internally. AI adoption is both a technical and operational shift. Success requires cross-functional support, clear goals, and ongoing refinement.
Worldpay’s report predicts that, in the next five years, AI will have streamlined business operations, resulting in more effective and personalized payment experiences. Businesses will become smarter and more strategic, with the biggest gains being accelerated growth, innovation, and security.
Spending on AI is projected to triple from $35 billion to $97 billion by 2027 – which isn’t far off. As the market evolves, software platforms that build AI into their core strategies will shape the next generation of payment experiences and unlock exceptional value for merchants and customers.
