With Smarter Posting, Smarter Settlement
Forecast and Smarter Stand-In Processing, Visa can enhance
predictability, transparency and speed in the payment
experience.
Visa Inc. (NYSE: V) today announced VisaNet +AI, a suite of
AI-powered services that address long-standing challenges and pain
points for banks, merchants and consumers—including delays and
confusion with managing account balances and the unpredictability
of daily settlement for financial institutions. VisaNet +AI
comprises several innovative concepts and new value-added services,
including Visa Smarter Posting and Visa Smarter Settlement
Forecast, as well as Visa Smarter Stand-In Processing (Smarter
STIP), a capability announced in August of last year. These
innovations harness Visa’s high-performance AI platform to help
make payments more predictable, transparent, and speedy.
“Our clients, partners and cardholders look to us for actionable
data-driven insights to better manage their businesses and
financial lives, especially during these unprecedented times. Today
we’re announcing a set of services that use AI to make it easier
for consumers to manage their accounts, and for financial
institutions to manage their business,” said Jack Forestell,
executive vice president and chief product officer, Visa. “With our
investment in AI infrastructure, we’re unlocking novel, real-time
solutions to complex problems. This is just the beginning of what
we can do with the predictive power of AI.”
Smarter Posting helps provide greater transparency for
consumers
Today’s digital-native consumers expect real-time visibility
into their finances as they increasingly conduct banking on mobile
and online platforms. However, the payment experience for consumers
can be inconsistent, with some purchases taking longer to finalize
on their balance than others. This lag can create confusion or
concern for cardholders, resulting in increased call center volume
or potential overdrafts.
This delay occurs because the amount authorized in real-time at
the checkout counter can differ from the amount eventually cleared
from a consumer’s account. For example, the final amount can change
when a restaurant-goer adds a tip at a restaurant, or when a
cross-border payment happens involving multiple currencies. To
prevent consumer confusion from seeing multiple charges for a
single transaction, banks often delay posting the payment or
updating the account balance until they have certainty about the
final amount.
To help issuers create a better banking experience for
cardholders, Visa developed Smarter Posting, a service that uses AI
to deliver a customized score for each transaction as part of the
authorization process. The Smarter Posting model analyzes
transaction details and historical data to predict the likelihood
that a transaction amount will remain consistent through clearing.
In testing, the model has achieved 98% accuracy1 in predicting
whether the transaction amount will likely remain stable, giving
financial institutions added intelligence to provide a more
consistent end-to-end payment experience, for example, by
provisionally updating the account balance that a cardholder
sees.
Visa Smarter Posting will be initially available in Europe in
April 2021 and is slated to expand globally in the near future.
Smarter Settlement Forecast uses predictive modeling to
anticipate cash flow needs
Every day during the settlement process, Visa enables the
movement of billions of dollars across thousands of institutions in
more than 200 countries and territories and 160 currencies. It’s
the final step in the payment cycle, where transactions are
aggregated, transfers are facilitated between acquirers and
issuers, and merchant accounts are credited for the sales they’ve
made.
This process requires financial institutions to strategically
allocate resources—so that there is enough liquidity to meet the
day’s settlement volume, without over-allocating resources that
could be leveraged elsewhere in their business. Today’s volatile
environment has underscored the challenge treasury teams face in
predicting daily volumes and making strategic decisions.
Visa created Smarter Settlement Forecast to provide clients with
customized 7-day forecasts of the settlement amount they may need
on hand each day. The service uses information generated by
historical settlement volumes, seasonal indicators, macro-trends,
outlier events, such as those surrounding COVID-19, and real-time
transaction data to provide high quality predictions of cash
outflows and inflows. These forecasts can help issuers and
acquirers optimize treasury and liquidity management processes, and
assist financial institutions settling in multiple currencies with
predictions for each currency.
Smarter Settlement Forecast is slated to be made available to
eligible clients through a subscription in the Visa Analytics
Platform, thereby simplifying integration for clients. Visa is
currently piloting the service with three clients ahead of its
formal launch planned for later this year.
Smarter STIP can improve payment experiences during
outages
Visa Smarter Stand-In Processing (Smarter STIP), the first of
the VisaNet +AI capabilities announced in August 2020, has gained
traction among leading financial institutions globally. Smarter
STIP uses deep learning to help financial institutions increase
transaction authorizations during outages. Smarter STIP generates
an informed decision to approve or decline transactions on behalf
of issuers to provide consumers with a frictionless Visa payment
experience.
Since its release, Smarter STIP has seen strong issuer interest
across every Visa region. In just two months, clients around the
world have added Smarter STIP to their suite of Visa solutions,
including Caixa Econômica Federal, and Doha Bank.
“In Visa we have a partner that is driving new innovations in AI
for payments,” said Mr. Braik Ali H S Al – Marri, Chief Retail
Banking Officer, Doha Bank, Qatar. “With VisaNet +AI we can harness
those innovations and drive new value for our business and
customers.”
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments.
Our mission is to connect the world through the most innovative,
reliable and secure payment network - enabling individuals,
businesses and economies to thrive. Our advanced global processing
network, VisaNet, provides secure and reliable payments around the
world, and is capable of handling more than 65,000 transaction
messages a second. The company’s relentless focus on innovation is
a catalyst for the rapid growth of digital commerce on any device
for everyone, everywhere. As the world moves from analog to
digital, Visa is applying our brand, products, people, network and
scale to reshape the future of commerce. For more information,
visit About Visa, visa.com/blog and @VisaNews.
1 Visa data based on analysis comparing the model prediction of
when authorization and clearing amounts will remain consistent.
Analysis conducted on historical transaction data (August -
September 2020) for 150 million transactions.
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version on businesswire.com: https://www.businesswire.com/news/home/20210202005166/en/
Visa Inc. Lea Cademenos 415-319-2961 lcademen@visa.com
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