Why AI Upskilling Is the Ultimate Payments Talent Retention Strategy

AI talent is expensive. Payments firms may find the smarter retention play is teaching the people they already have how to use it.

In my conversations with payments leaders, one theme is clear: competition for AI talent is accelerating quickly. Nearly half of firms are now willing to pay a premium for employees with AI skills, underscoring just how competitive the market has become. That shift is forcing companies to rethink how they develop and retain talent over the long term.

The war for talent in the payments industry isn’t new, but the issue has become more pronounced with a sustained hiring pressure for firms across fintech and payments. Big tech and AI-first firms are offering competitive salaries and tempting equity packages, which makes it harder for many fintech companies to keep up and adds pressure at every stage of the hiring process.

Payments professionals looking for new opportunities may find that skills in AI, data analytics, and cybersecurity carry as much weight as traditional industry experience in today’s job market. Candidates who can navigate both compliance and payments infrastructure are especially appealing, and some employers are even looking for backgrounds outside of financial services.

These roles still require a strong grasp of relevant regulations, card networks, and the complexities of payment systems, along with the ability to work confidently in a highly regulated environment.

It’s difficult to find that combination of skills. The talent pool for these hybrid roles is limited, heightening the competition between employers. Still, larger tech firms continue to attract top AI talent, and that raises the stakes for competing payments companies and merchant services alike.

Historically, compensation has been a key incentive in a tight labor market. But this approach is starting to reach its limits, especially in the case of AI talent. For many candidates, the right role offers more than an attractive salary. Job seekers are prioritizing work-life balance, flexible schedules, and meaningful work.

Leading payment companies are shifting away from a compensation-only approach and placing greater emphasis on brand reputation. Employees want to work for innovative, growing companies, and AI upskilling is becoming a key part of that appeal.

Investing in employee development isn’t a “nice to have” so much as a strategic necessity. With AI becoming more integral to payment processes, businesses need to prepare their employees to work with, understand, and advance these technologies.

Embedding AI training into workforce strategies can take many forms, from formal education programs to hands-on cross-functional projects. Beyond building capability, it also shows employees that their long-term growth matters. When people feel they are gaining future-proof skills, they are more likely to stay engaged and less likely to job hop.

Companies risk widening skills gaps and increasing turnover without these investments. As some firms reduce entry-level hiring in favor of experienced AI talent, the long-term pipeline of skilled professionals may also start to shrink, creating additional challenges down the line. Recruitment strategies are evolving alongside these shifts. AI is increasingly being used to streamline hiring processes, from candidate screening to interview scheduling. While these tools can improve efficiency, they also introduce new obstacles.

Easier application processes have led to a surge in candidate volume, often overwhelming hiring teams and slowing decision-making. In a competitive market, delays can be costly, and top candidates are rarely on the market for long.

Employer branding is now a key differentiator, with candidates weighing an organization’s innovation, transparency, and commitment to growth. Companies that clearly communicate their mission, culture, and opportunities are better positioned to attract top talent.

Lengthy hiring cycles can also lead to candidate drop-off, particularly when competing offers are on the table. Payments firms that streamline their processes and communicate clearly throughout are more likely to secure top talent.

Beyond process improvements, payments companies must rethink how they position themselves to potential hires. Despite its central role in digital commerce, the industry is often perceived as infrastructure: reliable, but not necessarily innovative. This perception can be a barrier, especially when competing with high-profile technology companies.

Payments are central to some of the most significant trends shaping modern finance, from embedded experiences to flexible options like tap-to-pay and mobile payments. The work being done in the industry has an immediate and tangible impact on how people and businesses interact with money. Leaders who effectively communicate this impact have a distinct advantage in the talent market. Candidates want to understand what they will do and why it matters.

Transparency is just as important. Clear expectations, well-defined career paths, and open communication during the hiring process help build trust and improve candidate experience.

To move forward, payments companies need a more connected approach to talent that brings hiring, development, and retention together. That means widening the talent pool through skills-based hiring, investing in ongoing learning, and giving employees room to grow across areas like merchant processing and the broader payments ecosystem. It also means making AI upskilling a core part of the strategy, not an afterthought.

Ultimately, the companies that succeed will be those that align their talent strategies with the realities of an AI-driven industry. The most competitive organizations will invest in their people as intentionally as they invest in technology.

By prioritizing development, strengthening their employer story, and creating clear paths for growth, payments firms can position themselves as leaders in the next wave of innovation. In a fast-moving market where talent is in short supply, that could end up being the most important investment they make.

About the author: Afshin Yazdian is the CEO and Executive Chairman at payment processor Kurv, with an extensive background in the payments industry. Yazdian co-founded iPayment, building it from zero to a top 10 payment processing company in the US. Since then, Yazdian has worked with other payment processors like Paysafe before securing a deal with Kurv.