Valuations in the tens of billions of dollars for AI startups, unimaginable overnight riches and skyrocketing investments are understandable given the unique technological transformation that AI unlocks. Yet amidst the unbridled enthusiasm, bearish investors and analysts point to critical bottlenecks, from the grid and power generation to GPUs and environmental impacts. Yet one of the most essential aspects needed to fuel AI market growth and help AI startups justify their lofty valuations has been nearly invisible. Even the most advanced AI is powerless if it cannot be adopted due to an inability for consumers and businesses to pay for it. Those that embrace the already existing cutting-edge payment solutions solving the issue stand to set themselves apart from a crowded AI field.
The Emerging Market Imperative
The next wave of valuable customers is coming from digitally native young people, especially in fast-growing emerging economies. Instead of relying on traditional credit cards, they use alternative payment methods that work for their lifestyles. Mobile wallets and instant payment apps are fast, convenient and trusted in their communities.
To reach these customers, AI companies have to move beyond Visa, Mastercard and American Express and accept a wide range of Alternative Payment Methods (APMs). To put APM’s importance in perspective, according to research by PwC, cashless transactions in Asia-Pacific are expected to jump by 109% from 2020 to 2025, with Africa close behind at 78%. These regions are quickly becoming the real hotspots for digital finance growth.
Real-time payments show how quickly things are changing. For example, Brazil’s instant payment system Pix is on track to overtake credit cards as the top online payment method by 2025, according to Statista. That’s why being able to accept APMs like Pix in Brazil, M-Pesa in Kenya or UPI in India is not a nice-to-have; it’s the only way to win in these markets.
The Trust Trio: Fraud, Chargebacks and AML
The next big thing every AI company has to get right is trust. Security and compliance are non-negotiable. Whether you run a subscription platform, a digital marketplace or a B2B SaaS, your service is a tempting target for fraud. Leaving risk unchecked isn’t just a minor problem but it can threaten your company’s growth and even its reputation.
Companies need smart tools to manage the growing threat of payment fraud. If fraudsters target a company successfully, real customers end up facing extra hassles and slowdowns, which leads to more abandoned carts, lost subscriptions and churn. It’s the antithesis of the frictionless customer experience. And if you don’t control chargebacks, you risk hidden costs that can quietly kill your growth.
Cutting Edge AI Tech Still Must Address Bureaucratic Hurdles
There’s also no getting around compliance. As fines climb to record highs and projections show the trend is not stopping anytime soon, AI businesses must protect themselves as well as customers. To keep up with global standards like PCI DSS and PSD2, companies need a Payment Fraud Detection & Risk Management system integrated into their payment hub. Real-time monitoring to instantly spot suspicious activity and multi-layer authentication help businesses with explainability to regulators and avoid fines, while enabling high approval rates and untarnished brands.
The AI revolution promises to redefine how the world does business. However, that promise depends on the reliability of payment systems. The companies that will lead the next decade and become the true giants of the AI era aren’t just those that build the best algorithms, but those that can enable access to them globally, and payment solutions, from compliance to alternative payment methods, make that happen.
