Patience is lacking in many places these days – and the business world is no exception. It’s hard to make a business leader wait for something to see what’s going on or where things are going in a world that’s changing so fast all around them.

This is likely why nearly one in five merchants (19%) onboarded by acquiring banks in the United States each month are leaving too quickly to generate a profit for the average acquirer, according to the edition of December 2021 of “AI In Focus: Gaining Ground On Merchant Monitoring”, a collaboration between PYMNTS and Brighterion.

If they stick around a little longer, they might realize the benefits of leveraging artificial intelligence to monitor their systems and ensure no nefarious activity breaches security to compromise the business and its customers, even for a second.

But it’s not an overnight transformation. In fact, our research shows that nearly half of merchants on acquirer platforms are unprofitable, so there’s a delicate balance when it comes to convincing a CEO to hold on when results take more of a hit. time to appear than they would like. .

Fraudulent activity and low trading volumes also prevent 12% and 9.3% of merchants on acquirer platforms from being profitable, respectively, according to the report.

“AI In Focus: Gaining Ground On Merchant Monitoring” explores why AI is so important to merchant monitoring strategies at most acquiring banks. PYMNTS surveyed 104 executives of acquiring banks in the United States to find out how they use AI to monitor their merchant accounts and what benefits the technology has brought to their businesses.

Read more: How 104 acquiring banks are using AI to fight fraud and launch unprofitable merchant accounts

The report aims to provide actionable insights on how acquirers can leverage AI to improve their bottom line and deliver a holistic set of value-added services to their merchant customers.

And, while monitoring traders using AI isn’t a new phenomenon, it’s something that still has a lot of potential in 2022 and beyond. In fact, nearly one in three acquirers (31%) plan to invest in AI systems to monitor merchants over the next three years, according to our research.

As with fraud detection, acquirers who don’t plan to invest say they already use AI to monitor traders, so they’re ahead of those who barely learn what they’re doing. probably should have done years ago. Almost all US acquiring banks intend to expand their AI capabilities in the future.

Our research also shows that 45% of acquirers generating less than $100 million in annual revenue plan to invest in AI to improve their merchant monitoring over the next three years.

Acquirers generating more than $100 million in annual revenue are much less likely to expand their AI capabilities during this time because they are already using the technology, as only 15% of acquirers with more than $100 million in annual revenue will improve their AI capabilities in the next three years, and 85% are already using AI for this purpose.



On:More than half of US consumers believe biometric authentication methods are faster, more convenient and more reliable than passwords or PINs. So why do less than 10% use them? PYMNTS, in collaboration with Mitek, surveyed over 2,200 consumers to better define this perception in relation to the usage gap and identify ways companies can increase usage.