AI in Payment Processing

What is AI in payment processing?

Artificial intelligence (AI) has digitized payment processing, streamlining online shopping and paying bills through the Internet. According to the 2019 Global FinTech Adoption Index, 25% of small & medium businesses use AI technologies in banking, financing, and financial management. AI-powered digital banking drives a superior customer experience by mimicking the actions of in-person customer service, but faster, with round-the-clock access. Instead of waiting to reach a live person, customers can interact with a virtual assistant or chatbot—supported by natural language processing, powered through intelligent IA.

AI in payment processing is also starting to utilize computer vision, which replaces traditional currency and credit cards. Account information is stored digitally, and customers use smartphones to pay for purchases (i.e., Google Pay, Apple Wallet, etc.). Financial organizations are also starting to utilize computer vision so that customers can open accounts online instead of in a traditional bank.

AI technologies are especially useful for fraud detection. AI uses big data to build user profiles for payment settings, analyzing transactional history and past behaviors to establish a pattern. When unusual activity occurs, AI alerts the bank or customer, prompting them to block the account or re-confirm the transaction via text, email or other communication methods. Less time is needed to verify daily transactions as well. Machine Leaning (ML) algorithms analyzes data to quickly weed out fraudulent activity. 

Key business benefits of AI in payment processing

Artificial intelligence has made payment processing and digital banking much easier. Here’s why:

  • Gathers financial data faster. Transaction history and account information is available in a snap.
  • Higher ROI. PwC estimates that AI is projected to increase the GDP of the financial and professional services industry as much as 10 percent by 2030.
  • Commitment to fraud prevention. Machine Learning detects risky behavior and fraudulent activity quickly, making it one of AI’s top qualities.
  • Saves time and money.  Virtual Assistants and interactive chatbots save operating and human resources costs.
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