MasterCard is embracing chatbot integration (MA)

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Mastercard announced that it will be introducing a chatbot that will give both merchant and bank partners the ability to engage directly with consumers through a number of messaging platforms.

With Mastercard KAI, Mastercard's bot for banks, US consumers will be able to ask questions about their accounts, see their purchase history, and even learn about rewards and benefits through Facebook Messenger. Merchant partners will also get chatbot capabilities through Mastercard, this will allow customers to shop on messaging platforms such as Facebook Messenger, and then check out using MasterPass.

Chatbot integration could help Mastercard and its partners build a larger digital presence while reducing costs. 

• Using a chatbot increases engagement. Messaging apps are used nine times a day on average, significantly more then the average app, which is used twice daily, according to a study by Flurry Analytics. By incorporating a chatbot, banks and merchants can reach consumers where they already spend a lot of time. This increased engagement also gives merchants the ability to cross sell by delivering offers to customers that are tailored to their specific needs and interests, making customers more likely to respond.

• The addition of a chatbot can boost digital presence while reducing costs. Deploying a chatbot is often cheaper than building an app or employing customer service representatives. This could incentivize some small business merchants that are interested in building a digital presence but may find it too expensive to build an app, to turn to a chatbot. Using chatbots could also enable banks to reduce costs associated with employing customer service representatives.

Advancements in artificial intelligence, coupled with the proliferation of messaging apps, are fueling the development of chatbots — software programs that use messaging as the interface through which to carry out any number of tasks, from scheduling a meeting, to reporting weather, to helping users buy a pair of shoes. 

Foreseeing immense potential, businesses are starting to invest heavily in the burgeoning bot economy. A number of brands and publishers have already deployed bots on messaging and collaboration channels, including HP, 1-800-Flowers, and CNN. While the bot revolution is still in the early phase, many believe 2016 will be the year these conversational interactions take off.

Laurie Beaver, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on chatbots that explores the growing and disruptive bot landscape by investigating what bots are, how businesses are leveraging them, and where they will have the biggest impact.

The report outlines the burgeoning bot ecosystem by segment, looks at companies that offer bot-enabling technology, distribution channels, and some of the key third-party bots already on offer. The report also forecasts the potential annual savings that businesses could realize if chatbots replace some of their customer service and sales reps. Finally, it compares the potential of chatbot monetization on a platform like Facebook Messenger against the iOS App Store and Google Play store.

Here are some of the key takeaways:

• AI has reached a stage in which chatbots can have increasingly engaging and human conversations, allowing businesses to leverage the inexpensive and wide-reaching technology to engage with more consumers.
• Chatbots are particularly well suited for mobile — perhaps more so than apps. Messaging is at the heart of the mobile experience, as the rapid adoption of chat apps demonstrates.
• The chatbot ecosystem is already robust, encompassing many different third-party chat bots, native bots, distribution channels, and enabling technology companies. 
• Chatbots could be lucrative for messaging apps and the developers who build bots for these platforms, similar to how app stores have developed into moneymaking ecosystems.  

In full, the report:

• Breaks down the pros and cons of chatbots.
• Explains the different ways businesses can access, utilize, and distribute content via chatbots.
• Forecasts the potential impact chatbots could have for businesses.
• Looks at the potential barriers that could limit the growth, adoption, and use of chatbots.

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of chatbots.