Prominence of AI in Payment Processing

CIO Review Europe | Wednesday, October 27, 2021

Using AI platforms in risk assessment tools reduces the time it takes to validate bank and merchant transactions.

FREMONT, CA: In recent years, digital transformation has pervaded all businesses, particularly the financial industry. The emergence of artificial intelligence is at the center of this revolution (AI).AI is altering the world for everyone’s convenience, from e-mail spam filters to natural speech recognition to online shopping recommendations. This instance shows how prominent AI now is and how its adoption will only increase. So, here are two ways it is changing payment processing.

Safe and Convenient Payments

Enhancing the Customer Experience: The functionality of payment technology has been optimized thanks to AI. Because so many people are now used to shopping online and on their phones, AI makes a payment more convenient by delivering customized banking. Chatbots are currently being used in apps and websites to answer questions and deliver services around the clock.

Taking Fraud Head-on: Advanced pattern recognition in machine learning AI automatically analyzes and monitors payment behaviors. AI can detect unexpected expenditures or tips that are larger than typical based on previous transactions, reducing credit card theft. Furthermore, using AI platforms in risk assessment tools reduces the time it takes to validate bank and merchant transactions.

AI and the Future of Payments

Computer-Vision Powered Payments: Even though facial recognition technology has been around for a while, pioneers believe it is the way of the future for digital payments. Debit and credit card data can be stored with the facial ID using machine vision AI, allowing users to pay with it.

Voice-Activated Transactions: Biometric secured payments are becoming the standard, thanks to the integration of biometric technology into most smartphones. Advanced use cases, on the other hand, aim to combine AI-powered smart assistants with voice-recognition technology thoroughly. Smart assistants access the accounts for the transaction when one uses voice-activated payments. Voice-activated payments will no longer rely on assistants or other biometric security to verify their authenticity.

Because frictionless payment is at the forefront of the digital transformation of financial services, it will not be long until these techniques supplant the majority of the current ways.

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