The news: Checkout.com partnered with Spotify to deliver global acquiring services for the music platform, per a press release.

This deal will include Checkout.com’s Intelligent Acceptance, a proprietary AI solution that enables network tokens and authentication services that make repeat purchases, like subscriptions, swifter and more secure.

Why this matters: Checkout.com will process the monthly subscription payments of Spotify’s 280 million users, per the press release. With Spotify’s US subscription revenues forecasted to crack $6.81 billion, per our forecast, Checkout.com stands to pick up significant volume and revenues on each transaction.

AI strategies: Intelligent Acceptance demonstrates how AI tools are becoming embedded within payment processes. Other competitors are adopting the technology to improve customer experience:

• Affirm’s AdaptAI lets merchants offer personalized APRs, repayment terms, and cash savings.
• PayPal’s Advanced Offers personalizes ads and deals based on consumer purchase data.
• Bolt’s Checkout 2.0 personalizes the checkout experience based on consumers’ device type and purchase history.

Implications for payment providers: Subscription-based payments are strong candidates for tokenization because they’re recurring and auto-verified. By leaning on a token settlement process, providers stand to lower costs and settlement times for their partners.