Technology is the most powerful thing when it empowers everyone, and PayPal proves it every time as it has been broadening Artificial Intelligence and Machine Learning models across the company. To democratize AI, an end-to-end data exploration, feature engineering, model training, and inferencing platform that is available to all business domains and cross-functional users are critical to PayPal’s success. Data science and machine learning have been integral to PayPal’s sophisticated fraud detection offerings which have made PayPal the preferred choice of payment processor globally.
Partnership on AI
The mission of “Partnership on AI” brought together a multi-stakeholder community spanning technology developers, researchers, advocates, and organizations representing affected communities to develop a shared understanding of challenges and opportunities that touch a wide range of constituencies–and promising answers and strategies to meet and address those issues.
Machine Learning Models
PayPal’s machine learning models can help predict in advance if a user’s card will be declined for a transaction and prevent the purchase from being completed. If a decline is predicted, the company can create a custom experience for the user that will ensure a valid purchase goes through, which has resulted in improvement of auth rates between 60-240 bps for certain merchants. For example, PayPal can surface a different payment method within a user’s PayPal wallet that has been successful in the past. The company can also prompt a secondary form of authentication using 3D-secure or request a CVV to make sure the user is who they say they are.
Data Science Models
Data science models can help the company in identifying good transactions so that it can “stand in” for purchase and make sure it goes through when merchants face technical issues that interrupt transaction processing. PayPal can also take this one step further by offering VIP stand-ins: for highly engaged and loyal customers, the company is able to “stand-in” for purchase regardless of the reason for a decline. Both scenarios minimize losses for a merchant and give the consumer confidence that their payment will go through when using PayPal. The company is then able to recover the transaction value when the systems are back online through a smart retry recovery model.
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