In the latest episode of Leaders in Payments, Greg Myers speaks with John Minutaglio, CTO of Payarc, about the role of artificial intelligence in payments. Payarc, a rapidly growing payment processor, has built a reputation for providing high-touch service to merchants and agents. Their focus has always been on fostering strong relationships, and AI is now playing a crucial role in enhancing that experience.

John explains that Payarc’s AI strategy is centered on augmenting human interactions rather than replacing them. Their AI framework, called PIE, assists customer support teams by providing insights and recommendations, allowing representatives to respond more efficiently and personally to merchant needs. One significant use case is churn prediction, where AI analyzes data to identify merchants at risk of leaving. By proactively alerting human representatives, Payarc can engage with customers before they churn, leading to increased retention.

Another powerful application of AI at Payarc is in developer support. Their AI tools help software providers integrate Payarc’s payment solutions more effectively by analyzing code and identifying errors, reducing the need for complex troubleshooting. AI also enhances fraud detection, particularly in mitigating ACH reject fraud. By analyzing behavioral patterns and external data sources, Payarc can identify suspicious activities before they escalate into financial losses.

John highlights that AI in payments is not just about automation but about using intelligence to drive better service, security, and efficiency. As AI continues to evolve, Payarc aims to remain at the forefront, leveraging advanced models to improve customer confidence, reduce fraud, and enhance the overall payment experience.