AI-powered finance: Bridging payment disparities

By Amit Sagiv, Co-Head of Payments, Wix

There’s been a paradigm shift in payments, and it’s much bigger than just leaving your wallet at home. The whole dynamic and inner workings of payments have changed with contactless payments, connected devices, IoT, and more. This means the building blocks that once were considered unique and innovative are now the baseline for new systems that try and disrupt the financial sphere – and, more importantly, how users experience payment processes.

It’s all moving very quickly, and the pieces of the puzzle are being built from the infrastructure first, with experience built on top. There’s a market shift from what users could do to what the users should and need to do.

What’s really happening in payments today?

The biggest tech talk has been about the extension of machine learning (ML) and artificial intelligence (AI) and the introduction of generative AI (GenAI). These technologies disrupted the dynamic of communication between the human user with the machine and data and will continue to influence how software and the user interact, how payment interfaces are built, and the user experience as a whole. For example, what was handled in person has shifted to digital experiences, no longer requiring in-person interactions, and new interfaces were developed for digital interactions, leading to different user experiences.

AI-powered interfaces are in continuous learning mode, so their experience improves and becomes more personalized as the user interacts with them. AI-powered technologies, such as ChatGPT and other LLMs, are now the “workhorses” that manage transactions instead of people. More specifically, LLMs can handle natural language, so people don’t need to speak finance to succeed in financial tasks like chargeback handling or budget/cash flow planning.

How the user experiences the process has completely shifted. With the proper configuration, this model can speak to anyone in any language and at any level of financial knowledge. While total AI integration is a bit farther away for payments, it’s slowly coming along with product design to address fintech problems and handle huge amounts of data from many sources in a relatively short and simple way.

Democratizing financial information & knowledge

The good news is these technologies are democratizing financial information and knowledge, and now there’s more accessible information available. This change has promoted inclusion on a never-before-seen level because now more people are served properly, and the legacy risk assessment methods are changing. AI is accessible to all genders and available in a broad range of demographic areas. Consequently, individuals of any gender, race, and credit score can access information using a mobile device, eliminating biases associated with these demographics.

The evolution of the digital financial ecosystem shows the technological gap is getting bigger, and technological literacy is essential for users to understand and keep up with the fast-changing landscape. For example, mobile devices have changed how payments are conducted in everyday payment activities. Now, business owners can easily pay their vendors or suppliers digitally rather than with old-school paper checks.

Apple payment system growth

Apple Pay is more than just Apple Payment, a convenient way to make payments, as many think it is. It’s not just a way to store a credit card on a phone. It’s also a gateway to a whole financial ecosystem with interest rates and the highest growing adoption rate across the industry to disrupt the banking system.

Apple has launched or announced key products and services for banking. More specifically, “The essential design of Apple’s financial services can be thought of as a container (Apple Wallet) that stores money (Apple Cash), credit (Apple Card, Apple Pay Later, Apple Pay Monthly Installments), and identity (government-issued IDs and other credentials) and wraps them with a transaction layer (Apple Pay) that can securely interact with a variety of other Apple components and third-party systems.”

This led to the development of contactless payments with tap-to-pay and mobile point-of-sale (POS), dramatically reducing entry barriers. More people can interact as easily physically with digital payments as they would online. So, not only does this change how merchants collect payment, but it streamlines the entire process for the buyer.

What does this mean for the future of commerce?

Unified commerce is a cohesive experience with multi-channels of sale that live across brands and surpass channels. It’s the practice of connecting backend systems with customer-facing channels via a single platform. It’s the setup companies that are required to support omnichannel journeys and create a unified experience and view of shopper interactions, products, and management systems. There’s a continuation of the experience, and it’s seamless.

This strategy integrates all the data merchants collect about prospects, customers, and products into a single platform and how they can manage the customer experience. It naturally follows the buyers’ journey and creates fewer system limitations and boundaries.

Digital wallets and digital IDs have changed how people pay. Now, everything is stored in a digital wallet. What we used to carry in our physical wallets, such as ID cards, membership cards, etc., can now be digital versions and store more information, including plane tickets, concert tickets, and more.

In the past, sophisticated financial solutions and insights were reserved for the elite 1% due to the extensive manual work required for meaningful analysis of each account. However, with the advent of AI, this process has become much lighter and more accessible to all who need it, effectively democratizing financial knowledge and accessibility. We anticipate a significant shift towards providing financial tools and insights to the masses, previously available only to the wealthy.

In essence, what was once a service reserved for purchase by the rich — knowledge — is now becoming available to everyone through mobile technology. We eagerly await the transformative impact of this on financial inclusion and empowerment. Furthermore, fintech is improving exponentially because people are making better decisions faster. It’s like everyone is transitioning from nail and hammer to a power drill, and we’re only at the beginning of this transformation.

The AI payments future is here

Now imagine every business, regardless of size, has a financial navigator (i.e., advanced technology) so intuitive that it not only reacts to the needs of merchants and users but anticipates them, guiding them toward smarter, strategic decisions. The future will be about transforming simple transactional tools into comprehensive financial allies.

The walls between payment processing, cash management, and capital facilitation will be torn down to empower businesses with options and personalized, strategic pathways tailored to their growth. This is where we’re headed and where we need to go.

At Wix Payments, our commitment lies in actively fostering these transformative shifts and championing financial inclusion for every user worldwide. We’re dedicated to ensuring that the benefits of advanced financial solutions and accessibility extend to all, empowering individuals and businesses on their path to success.

About the author

Amit Sagiv is the Co-Head of Payments at Wix. Sagiv is responsible for all aspects of the strategy, execution, and growth of Wix’s fintech offering, enabling merchants to manage orders and payments all in one place. Since joining Wix, Sagiv has played a key role in creating Wix’s complex global payments ecosystem. Prior to Wix, he founded Inkcliq, a social platform for collaborative storytelling and has served as an executive, leading teams for numerous Israeli fintech startups, including Pepper (Banking), and Leverate, and worked as a project manager for several leading brands such as Intel and Teva Pharmaceuticals. Sagiv is a highly effective financial services veteran with experience in payments, banking, and stock trading and is a dedicated mentor and adviser in the space.