New Artificial Intelligence Revolutionizes Online Payments: Conversion Grows 6% at Major Retailers

✅Introduction

Three pillars are fundamental to the commercial success of the world’s largest companies: increasing sales conversion, reducing fraud, and controlling operating costs.

To balance this complex equation, Adyen, a leading payment technology provider for large companies, launched Adyen Uplift, an innovative artificial intelligence (AI) solution that is already delivering impressive results in efficiency and financial return.

✅Tested globally, the solution has a positive impact on conversion and risk management

Adopted by more than 60 large companies around the world, including names such as Patagonia, On, Indeed, and Nord Security, the technology officially launched in the Brazilian market on April 16, 2025.

Since its implementation, merchants have seen an average increase of 6% in online payment conversion rates, a significant result for digital retail.

In addition, the platform’s advanced suite of AI models delivered major improvements in risk management, reducing the number of manual rules applied in payment review by 86%. Impressively, 35% of customers eliminated these rules entirely, saving a considerable amount of time and operational resources.

We had global customers operating with more than 500 manual rules — today, they work with just one, says Thais Fischberg, Adyen’s president for Latin America.

Even companies with lower transaction volumes could add $1.2 million in annual sales and substantially cut their processing costs simply by adopting artificial intelligence, she adds.

Artificial Intelligence and Big Data: The Secret Behind Payment Optimization 💡

Adyen Uplift represents a profound transformation in the way payments are optimized, integrating AI into the Adyen platform’s robust global data ecosystem.

In 2024, the platform processed transactions exceeding €1.2 trillion for the world’s largest companies.

The solution was designed so its AI models can share information and continuously learn from one another, forming a complex network of interdependent decisions.

For example, the customer’s checkout experience is adjusted based on predicted risk, which in turn depends on the authentication used and the payment method chosen. Even the strategy for retrying a failed payment is set dynamically.

Real-time data sharing and Adyen’s vast database mean that Adyen Uplift is constantly evolving, Fischberg explains.

This technology represents a paradigm shift for payment performance, not only in Brazil but in every market where we operate.

✅ Scalability and Speed: Getting to Know the Shopper in Seconds ⏱️

The solution’s scalability is another key differentiator for identifying shoppers effectively.

When a brand gets a new customer, there’s a more than 90% chance that Adyen already has data validating that specific combination, allowing the legitimacy of the transaction to be verified quickly.

This process results in a smoother, faster checkout for legitimate customers while strengthening fraud prevention.

As a result, the need for manual rules is virtually eliminated, significantly reducing the operational workload of review teams.

In addition, the system dynamically selects the ideal authentication path for each payment, such as the 3DS protocol or Data Only, balancing the level of risk with the best possible consumer experience.

This integrated approach means each transaction goes through multiple AI decision points (between 2 and 5 on average), with a response time of under 20 milliseconds, ensuring speed and efficiency.

Balancing risk, conversion, and costs has always been a dilemma for companies — but that has changed,” says Rodrygo Moço, Head of Product at Adyen LATAM.

Adyen Uplift is being rolled out gradually, with modules released over the coming months and an interface that suggests optimizations and allows customers to run controlled tests.

E-commerce Growth Demands Smart Solutions for High Data Volumes 📈

The development of Adyen Uplift and the integration of AI into payment technology represent a crucial step forward for e-commerce, especially given the sharp increase in the value of remote purchases.

In Brazil, according to data from the Brazilian Association of Credit Card and Services Companies (Abecs), the total value of online purchases in 2024 grew 17.9% compared with the previous year, reaching roughly $196 billion.

In this context, it is essential for companies to adapt quickly to industry changes and consumer behavior, adopting platforms that process data intelligently and effectively by integrating AI into a robust real-time information ecosystem.

Additional Benefits: Lower Costs and Fraud Prevention 🔒

The gains from Adyen Uplift aren’t limited to conversion and security.

The solution also directly reduces operating costs for merchants by blocking fraudulent transactions more accurately, lowering processing expenses, and curbing chargebacks, a problem that hurts the profitability of many companies.

The launch of Adyen Uplift coincides with the fifth anniversary of the start of Adyen’s in-house AI model development, whose mission is to raise the performance of payment operations, driving greater efficiency and conversion.

In addition, the company is working toward a future in which AI automatically ranks the most effective payment methods for each store and shopper, making checkout even more personalized and intelligent.

✅About Adyen

Adyen (AMS: ADYEN) is the payment technology platform of choice for leading global companies.

With end-to-end integrated capabilities and data-driven insights, Adyen offers a single global solution that accelerates business growth.

With a presence in many countries and strategic offices, Adyen serves major clients such as Uber, 99, Magazine Luiza, iFood, Grupo Globo, and C&A, among others.

✅Impact of the New U.S. Tariffs: Shein Suppliers in China Shut Down and the Market Restructures

How the shift in U.S. tariff policy is affecting global e-commerce and the fast-fashion supply chain

Starting May 2, 2025, international shipments valued at less than $800 will lose their import duty exemption in the United States.

This decision, announced by President Donald Trump, is causing significant changes in the global e-commerce industry, especially affecting the Chinese suppliers of fast-fashion giant Shein, based in Guangzhou, in the area known as “Shein Village.”

✅Tariffs and Factory Closures: A Challenging Scenario for Chinese Suppliers

With the repeal of the “de minimis” policy, which previously allowed low-value products to be shipped to the U.S. tax-free, shopping on platforms like Shein has become considerably less attractive for American consumers.

This new tariff landscape has worsened the difficulties faced by local suppliers, who were already dealing with China’s slow economic growth.

As a result, many factories have scaled back or halted operations due to the sharp drop in orders and sales volume.

Faced with piled-up inventory and unfinished products, some business owners have started selling their items directly through social media, looking for ways to minimize losses.

To mitigate the negative impact, Shein has been encouraging production to move to countries such as Vietnam, which offer lower costs and more favorable tariffs.

However, this migration represents a logistical and financial challenge for many small suppliers, making adaptation difficult.

Price Increases and a Warning to U.S. Consumers ⚠️

✅Regional Economic Effects and the Search for New Markets

The factory closures aren’t limited to Guangzhou; they extend to other cities in Guangdong province, such as Panyu and Dongguan, where the economic slowdown and the U.S.-China trade war have been putting pressure on the industry.

Many suppliers are redirecting their sales to nearby markets, such as Japan and Singapore, where there is greater demand for affordable products and lower shipping costs.

✅A Shift in Export Profiles and Adapting to the New Trade Reality

Even before the new tariff policy, trade between China and the U.S. was already facing challenges.

Many American companies had begun moving away from the Chinese market.

One example is a factory in Dongguan that lost four American clients at the end of 2024, resulting in a $150,000 drop in revenue — about 80% of the company’s total revenue.

With tariffs reaching as high as 145% on Chinese products, sales to the U.S. have fallen, while exports to Europe and Asia have increased.

To adapt, many Chinese companies are adjusting prices for new markets and exploring alternative channels, while American consumers are turning to wholesale platforms such as Alibaba, DHgate, and Taobao, which have seen strong growth in downloads on the U.S. App Store.

✅Looking Ahead: Challenges and Opportunities in Global Trade

The new tariff policies require Shein and its Chinese suppliers to reinvent their strategies in the face of higher costs and reduced competitiveness in the U.S.

The balance between supply and demand will be crucial in shaping the future of global e-commerce, spurring new channels and alternatives to meet the challenges posed by these changes.