Transforming Payment Processes: A Discussion of AI-Enabled Routing Optimization

Abstract

The utilization of Artificial Intelligence (AI)-enabled software and hardware is expected to enhance the effectiveness of monetary exchanges, which is the main objective of this research. Since transaction costs are based on the actual amount being transferred, customers feel more at ease making purchases using this approach. This work aims to investigate the role of financial systems in effective corporate administration, with a particular emphasis on gateways as key components of these systems. This study investigates the factors (price, procedures, risk assessments, etc.) that influence the connecting of merchant identities across several channels in a digital payment system. When multiple endpoints are connected to a central hub, they are referred to as a ‘‘terminal.’’ The study shows that utilizing AI-enabled software and hardware can reduce transaction costs and increase consumer confidence in purchasing decisions. This research can potentially improve financial systems for businesses and consumers by identifying the most effective applications of AI in this sector.