AI in Payments: Hype vs. reality at MPE 2025

• AI enhances efficiency and user experience in payments but also presents security risks, making ethical use and strong safeguards essential.

• Hackers are using AI for advanced attacks, pushing the payments industry to evolve security standards and stay ahead of emerging threats.

• AI-driven personalization improves online shopping experiences, but merchants need relevant, actionable data instead of overwhelming information.

• By simplifying complex processes, AI turns raw data into insights that help merchants make smarter business decisions and improve customer experiences.

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Nobody can (nor should) deny that AI is already transforming our lives, simplifying various aspects of daily routines and industries, including payments. The payment ecosystem is actively exploring AI-driven improvements in landscapes, security, and efficiency. But what does this really mean for the industry?

Sessions at MPE shed light on AI’s role from multiple perspectives, merchants, security standards organization, business analysts, and software consultancy. The key question remains:

How can leveraging AI make payment processes more efficient, reliable, and impactful?

As we all know, there are always two sides to a story. AI is no different. We see good AI and bad AI, the classic good cop, bad cop scenario. But what determines whether AI is beneficial or dangerous?

If AI listens, learns, and interacts in a way that mimics human behavior seamlessly, it can enhance user experience significantly. From a technical standpoint, this is a remarkable achievement. However, if used with the wrong intent, it can also become a serious threat.

Think of AI like an American Pit Bull Terrier. When trained with care, positive reinforcement, and ethical guidance, it can be a loyal companion. But with bad training, negative influence, and harmful intentions, it can become a risk. Unfortunately, perception plays a crucial role. If an American Pit Bull Terrier has been associated with aggression, people may instinctively avoid it, even if the individual dog is friendly. AI faces a similar challenge. Once people experience AI-related security threats, their trust diminishes, making them hesitant to embrace its benefits.

One of the key concerns raised during MPE was AI’s role in security. Jeremy King from PCI Security Standards Council highlighted a sobering reality: hackers are already using AI to find vulnerabilities in systems. AI can generate and refine attack codes, making backdoor breaches easier and more sophisticated.

Moreover, the rapid advancement of AI-generated media poses serious questions about biometric security. Just 15 seconds of video can be enough to create an AI-generated deepfake of a person. What does this mean for security standards relying on biometric authentication?

The takeaway? Standards and regulations need to evolve at the same pace as AI advancements. Every part of the payments value chain, merchants, payment providers, and security regulators, must collaborate to ensure AI-driven threats are mitigated effectively.

On the flip side, AI is not just a tool for attackers; it is also an essential defense mechanism. AI-driven security systems can detect malware, monitor integrations, and identify suspicious activity faster than traditional methods. The challenge is ensuring that AI is leveraged responsibly and ethically to enhance, rather than compromise, security in the payments industry.

From a merchant’s point of view, the goal is simple: create the best possible customer experience and, in turn, increase revenue. Ultimately, this is the driving force behind every business: making money. And for merchants and retailers, that money is made at the POS.

Laura Treude from Douglas presented the merchant perspective during the panel discussion. Their strategy? Hyper-personalization, not to be confused with hyperpigmentation (a little beauty joke for a beauty retailer!).

As a leading beauty retailer, Douglas thrives on selling high-quality perfumes and makeup products. But today’s customers expect more than just great products. They want a seamless shopping experience, whether in-store or online. Despite celebrating 25 years of its online store, the company faces a unique challenge: replicating the personalized in-store experience in an online environment. In-store, Douglas customers can rely on beauty experts to help them find the perfect foundation shade, the best brush for a specific lipstick, or the ideal signature scent for an upcoming honeymoon. Online, however, customers are left to navigate these choices alone. Without personalized guidance, they might abandon their shopping journey or make unsatisfactory purchases.

This is where AI comes to the rescue like a digital beauty expert wrapped in a superhero cape. Douglas leverages AI-driven hyper-personalization to provide customers with tailored product recommendations, mimicking the expertise of in-store consultants. By analyzing customer data, preferences, and behavior, AI ensures that each online shopper receives a curated experience, enhancing both satisfaction and conversion rates.

But what Treude also pointed out is that delivering data with regards to the payments industry is not all. Next to AI, data is another big buzzword. Data is the future. AI cannot live without data, that is for sure. Data is what keeps the engine running. However, while payment providers are proud and happy to share as much data as possible from various data streams and channels, merchants are often overwhelmed with the sheer volume of information they receive. 

This is not an uncommon sentiment. Many retailers, especially smaller ones, are often understaffed. They lack the time for proper data management, and even if they had the time, many are not familiar with data analytics. What they need is prepared data, data that helps them make informed, weighted decisions quickly. They need to be the final decision-makers, not data analysts.

On this topic, Davnit Singh from Thoughtworks added that the data shared with merchants needs to be of high quality and relevance. Payment providers must ensure that they “deliver the relevant data for the relevant target group at the right time.”

And this is where AI steps in. With the help of AI, data can be filtered, structured, and presented in a way that is not only digestible but also actionable for merchants. AI-powered analytics can highlight key insights, identify trends, and provide recommendations, turning overwhelming data into an asset rather than a burden.

The discussions at MPE made one thing clear: AI’s value in payments isn’t just about automation, it’s about making complex processes simple, secure, and actionable. For merchants, the challenge isn’t accessing data but understanding and using it effectively. AI has the power to bridge this gap, ensuring that insights lead to smarter decisions, better experiences, and ultimately, more revenue.

At Aevi, we believe in making technology work for merchants, not against them. Our in-person payment solutions are designed to bring clarity to complexity, whether through seamless transactions, actionable data insights, or enhanced customer experiences. As AI continues to reshape the industry, we remain committed to helping businesses navigate this evolution with confidence.

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