Harnessing GenAI and Cutting-Edge Payment Engines: Four Promising Use Cases

Drawing on our clients’ best practices, we’ve pinpointed four key areas where the synergy of Generative Artificial Intelligence (GenAI) and a sophisticated payment processing platform, such as Way4, delivers significant advantages.

Use Case 1: Accelerated Product Development and Testing

Bank staff can leverage the flexible rules within Way4 to swiftly design unique payment products across various domains, including issuing, acquiring, switching, wallets, Buy Now Pay Later (BNPL), digital currencies, and more. The platform also offers tools to test these products’ performance with just a few clicks.

When used in a co-pilot mode, GenAI, trained by a product manager, can automate many steps in the product configuration process. It can suggest enhancements to pricing, risk assessment, loyalty programs, value-added services, and other product elements. Moreover, Way4 can enforce specific limits and rules during product activation tailored to individual customers.

For instance, configurable pricing parameters in Way4 can be dynamically adjusted by GenAI to optimize profitability and customer satisfaction.

Use Case 2: Cost-Effective Customer Service Optimization

GenAI chatbots can initiate rich data exchanges with the processing platform upon receiving a customer request. This data-driven approach allows GenAI to swiftly resolve issues and offer personalized products or services to various customers, including cardholders, merchants, and mobile wallet users. Way4 can instantly create new contracts, incorporating necessary accounting schemes and activating new products and services in real-time.

Consider a scenario where a customer is traveling abroad. GenAI can instruct Way4 to transfer funds between accounts in different currencies, issue a virtual multi-currency prepaid card, and make it immediately available for use. Such workflows can include manager approvals for critical AI-driven decisions.

Beyond cost optimization, the hyper-personalization capabilities of GenAI, as highlighted by EY analysts, enhance customer satisfaction, retention, and confidence.

Use Case 3: Advanced Risk Management

GenAI excels in real-time transaction monitoring by analyzing vast amounts of customer and transaction data from multiple systems within a bank or payment processor. By continuously learning from new data, GenAI refines its detection algorithms, reducing false positives. When GenAI computes a new risk score, it communicates this to Way4, which then adjusts its payment authorization scenarios accordingly in real-time.

Use Case 4: Uncovering Strategic Opportunities

GenAI can uncover new revenue streams for the payments business by exploiting Way4’s capability to process detailed data, including Level 2 and Level 3 data. Way4 captures comprehensive transaction details, such as shopping cart contents, allowing for real-time application of purchase restrictions and incentives. GenAI can identify potential interest from government agencies or non-profits and generate targeted proposals.

Way4’s configurable API ensures seamless data exchange with third parties, enabling GenAI to propose new, profitable collaboration models between the bank and other ecosystem members.

Additionally, GenAI can analyze customer feedback, spending patterns, and emerging lifestyle trends to suggest enhancements to the bank’s existing products. For example, if a new travel destination becomes popular, GenAI can prompt Way4 to add another currency account to a customer’s multi-currency card, ensuring the product remains relevant and valuable.

By combining GenAI with a robust payment engine like Way4, banks and financial institutions can drive innovation, enhance customer experience, optimize operations, and identify strategic growth opportunities.