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Artificial Intelligence in Retail Payments: On the Way to Enhance Every Transaction

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Economic volatility and the ongoing impacts of the pandemic have challenged consumer loyalty to brands and retailers over the past few years. In response, more businesses are integrating AI-driven technologies to enhance customer experiences and streamline operations. But is fancy AI really helping retail, or is it just a big maybe? Let’s break it down:

 Estée Lauder’s Mood Decoder: They’re using sophisticated AI to understand shopper emotions. But can computers accurately gauge our feelings? Can they tell if we’re happy or not?

🍔 Uber Eats’ Food Friend: Uber is developing an AI buddy to suggest places to eat. Sounds intriguing, but can it really grasp our food preferences? Will it always know what we’re craving?

🛒 Walmart’s Helper Robot: Walmart has deployed a robot assistant for mundane tasks. But can it replace the human touch when it comes to assisting shoppers? Can it understand us like a friend?

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⚖️ Good and Bad Mix: Newegg’s AI attempts to summarize reviews, but it’s not always accurate. Can we trust it to understand collective opinions?

In this competitive landscape, retailers must leverage AI to provide personalized, efficient and engaging interactions that meet modern consumer needs and expectations on an individual level. AI-infused payment systems are at the forefront of this transformation, turning routine transactions into opportunities for deeper customer engagement and satisfaction.

Empowering Sales Associates: Real-Time Insights and Recommendations

Imagine sales associates equipped with AI tools that provide instant product insights and tailored recommendations. By leveraging data like customer preferences and purchase history, AI empowers associates to offer personalized suggestions that resonate with customers. This not only boosts sales but also deepens customer engagement and satisfaction.

For instance, an AI system might suggest a complementary accessory to a recent purchase, enhancing the customer’s experience and increasing the average transaction value. However, the question remains: can these tools truly understand and predict human emotions as accurately as Estée Lauder’s Mood Decoder claims to do?

Seamless Integrations with Mobile POS Systems

Mobile point-of-sale (mPOS) systems, augmented with AI, streamline transactions, shorten queues and personalize customer interactions. These systems provide sales associates with valuable insights into customer preferences and purchase patterns, enabling them to offer bespoke services that enhance customer satisfaction. The integration of AI with mPOS systems can predict peak shopping times, optimize staff allocation and ensure that customers receive a smooth and personalized shopping experience. But as with Walmart’s Helper Robot, can these systems match the nuanced understanding of a human assistant?

AI-Powered POS Self-Support with LLM-Powered Assistants

AI also extends to self-support for POS systems, utilizing large language models (LLMs) for easy configuration, rapid troubleshooting and answering questions. Retail staff can interact with AI-powered assistants that guide them through POS setup, diagnose and resolve issues and provide instant answers to common queries. This minimizes downtime, enhances operational efficiency and empowers staff with the knowledge they need to maintain seamless POS operations.

For example, if a sales associate encounters an issue with the POS system, they can quickly consult the LLM-powered assistant to resolve the problem without needing to wait for technical support, ensuring uninterrupted service for customers.

Revolutionizing Loyalty Programs with Hyper-Personalization 

Ingenico has deployed AI in the Merchant Digital Experience solutions, a powerful digital platform customized for your merchants, streamlining all aspects of payment operations from terminal setup to support.

Analyzing data from past purchases and browsing habits, AI helps tailor offers and rewards to individual preferences, significantly enhancing customer loyalty and satisfaction. For example, a customer who frequently buys sports equipment might receive exclusive discounts on new arrivals in that category, making the loyalty program more relevant and engaging. This mirrors the approach Uber Eats is taking with its Food Friend AI, aiming to perfectly match customer cravings with restaurant suggestions.

Enhancing Real-Time Promotions at the Checkout

Incorporating AI at the checkout transforms interactions with instant, personalized offers and promotions. These can range from loyalty benefits to financing options, enhancing the customer experience and encouraging further engagement. Real-time promotions can drive impulse buys and increase basket sizes by leveraging the current transaction, previous purchase history, or time-sensitive deals. However, similar to Newegg’s AI summarizing reviews, the effectiveness of these promotions depends on the AI’s accuracy and understanding of consumer behavior.

Interactive Displays and AI-Enhanced Checkouts

Interactive displays with AI capabilities provide on-the-spot product information, recommendations and purchase options. These displays can analyze customer behavior and preferences to offer tailored suggestions, creating a more engaging shopping experience. For example, a customer interested in running shoes might receive personalized recommendations for related accessories like socks or fitness trackers. This use of AI reflects the same ambition seen in Walmart’s robotic assistants, aiming to enhance in-store customer interactions.

Streamlining Self-Checkout with Computer Vision

AI-powered computer vision tools enhance the self-checkout process, allowing customers to effortlessly pick up items and leave without delays. These systems accurately scan and recognize products, speeding up the checkout process and reducing errors while also monitoring for theft, ensuring a secure shopping environment. However, as with any AI system, it’s crucial to evaluate its reliability and accuracy, much like the scrutiny faced by AI writing tools used by Stanley Black & Decker.

Dynamic Pricing with Electronic Shelf Labels

AI-enabled electronic shelf labels dynamically adjust prices based on demand, inventory levels and competitive pricing. This capability allows retailers to optimize their pricing strategies and improve profitability. For example, prices can be adjusted in real time to capitalize on high demand or to quickly move surplus stock. 

Conclusion: AI as a Catalyst in Retail Payments

AI is reshaping the retail payments landscape, enhancing the roles of sales associates, enriching loyalty programs, revolutionizing customer service and improving efficiency across the board. As AI continues to evolve, its potential to transform retail operations and customer experiences expands. Retailers adopting AI-driven innovations will find themselves better positioned to meet modern consumers’ demands, driving growth and staying competitive in the market. However, as highlighted, we must remain cautious and critical of AI’s capabilities, ensuring it genuinely adds value before fully embracing it.


Yacine Mahfoufi is the Head of Global Marketing at Ingenico, recognized as a LinkedIn Top Leadership Voice in 2024. He brings extensive experience in SaaS B2B marketing, having driven impactful marketing strategies at CybelAngel and Alcatel-Lucent Enterprise. Mahfoufi has a track record of leveraging new technologies and innovative approaches to enhance customer engagement and retention. His career is marked by significant achievements, including leading the marketing transformation at Ingenico and launching successful digital initiatives across various roles. Mahfoufi values ethics and fresh thinking in product and service promotion.

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