Payment Systems to thwart Fraud Detection and Prevention, in line with AI

Banking CIO Outlook | Thursday, June 06, 2019

FREMONT, CA: The payments industry's constant fight is to safeguard, and the software ecosystem against theft and fraudulent fees from criminals bent on causing economic damage. AI is rapidly becoming a useful tool for payment firms and financial institutions to decrease fraud in all settings, but chiefly to secure e-commerce transactions.

AI can enable payment businesses to look at transaction data in new and more efficient ways, increasing the number of legitimate successful transactions while reducing the number of illegal transactions. Advanced technology for AI fraud prevention and detection will be a growing investment area for payment firms. AI can assist payment firms in supporting the merchants they embark on by establishing a standard that is continuously adapting, living in real-time and adjusting with every chargeback and instance of fraud. Not only does this ensure a better ecosystem, but it also enables payment firms to safeguard themselves from losses owing to fraudulent merchants in a manually impossible manner.

The existence of chatbot programs, when applied to a customer-facing environment such as customer service and dispute resolution, will save banks billions of bucks in operating costs and hundreds of millions of working hours.

Most smartphones delivered today are fitted, with a virtual assistant powered by AI. For many components of a consumer's lives, along with personal finance, the smartphone became the iconic touchpoint. Hundreds of millions of customers are getting their payments and online banking to their smartphones with the proliferation of mobile banking applications.

Based on sector projections, voice commerce is anticipated to develop shortly in double-digits. AI then opens a new trade channel—one that can leverage payment firms to generate more digital touchpoints for customers to make purchases conveniently and safely. At last, by bringing payment information to the next level, AI can drive digital transformation for merchants of all sizes. They can also provide targeted marketing skills such as rewards programs and analytical dashboards to assist company owners in managing their stock, capture new revenues, and optimize their companies for each customer.

AI carries a great deal of promise for payment technology businesses by being a precious instrument for providing more strong payment products, driving customers and merchants towards more digital trade possibilities, and, most importantly, establishing a more secure and safe ecosystem.

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