This article indicates that Square is focused on using AI for Fraud and for loans. So is everybody else. I wrote “Now Is the Time to Develop an AI Business Plan Beyond Fraud” four years ago and 70+ Processes Banks Have Already Improved Using AI 2 and a half years ago. Based on this, Square is four years behind Mercator’s members in recognizing the opportunities for applying AI:
“Originally known for its card-reader dongles, Square has expanded to create a business toolkit for small business owners, including various hardware and software products and services such as Square Capital, Square Terminal, and most recently, Square Banking.
In this article, we explore how artificial intelligence and machine learning is used at Square, examining two current use-cases:
• AI for payment fraud protection: how Square aims to ensure that sellers are protected from fraudulent transactions by analyzing and monitoring live transactions and offering various software solutions, such as Risk Manager.
• Small business lending with Square Capital: how Square offers loans to small businesses who may otherwise not qualify by traditional lending standards by assessing default risk, revenues, and other metrics to determine a seller’s eligibility through its service called Square Capital.
We will begin by taking a closer look at how Square uses machine learning to enable its various software solutions that aim to increase fraud protection for sellers.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
