|June 12th, 2020|
AI (Artificial Intelligence) is gradually carving its way into the world of payment processing. This is not unforeseen but something that was expected considering the benefits and advantages AI can provide to the payments industry. As a matter of fact, financial service providing companies are estimated to spend $11 Billion on AI in the year 2020. For this industry, AI means an advanced analytical financial technology that has the potential to revolutionize payment processing, and the whole payment ecosystem for merchants, banks, as well as for the consumers.
AI comes into a system offering the simplest facilities and soon overtakes the most complex operations. It’s unique self-learning feature makes it a viable tool for intelligent operations and processes as well. The requirement of efficient fraud detection systems and keeping track of consumer behavior becomes easier with technologies like AI. Let’s look at some significant ways in which AI is transforming the payments industry.
1. Voice assistants: Voice enabled assistants can perform several functions from guiding consumers to payment pages to answering their queries. AI enabled voice searches guide users and ease the process of making digital transactions. Virtual assistants also simplify the purchase cycle by making searching easier. You can also directly ask your voice assistant to make a payment via your digital wallet etc.
2. Detecting frauds: AI’s brain is called a ‘neural network system’ and it works just like a human brain. These systems are used to detect and flag frauds to pick up on subtlest variations to determine fraudulent transactions in the system. AI helps in catching and flagging seemingly legitimate interactions by fraudulent players where humans overlook the anomalies. AI has modified payments security and taken it several notches higher up.
3. Smarter payments: From smartphones to payments, everything is becoming smarter and advanced. Intelligent applications that guide users related to finance and transactions guide consumers about their spending, helping them make savings decisions. Smart assistants can “run diagnostics” on users’ financial positions and do things like making payments, paying bills, auto-saving, managing spending and tracking expenditures. From paying for bookings to paying for ecommerce, AI has made payments smarter for everyone.
4. Record-keeping & backchecking: Smart AI based solutions are being used to track customers’ credit journey and to make a profile based on customer’s behavior and digital interaction. AI is a ‘data-miner’ above everything else and it helps uncover old and new data alike providing customer data to build profiles and personas. AI provides moneylenders a precise peek into the creditworthiness of customers and helps them in making important decisions.
5. Payment optimization: Debit card transactions with AI based virtual assistants, advanced banking apps and evolved security methods have made payments better and secure. Adaptive methods of improving payments are benefitting merchants and consumers alike. New financial tech that has AI ingrained into its wiring has helped to optimize payments, taking them to a whole new level.
6. Customer interaction: AI enabled chatbots which act as customer executives take the load of human employees. Most of the time it is a chatbot that deals with your problems, guiding you to solutions. When AI is against the ropes, a human assistant comes in. However, the first contact either via text or through speech is with bots acting as bankers.
7. Automating payments: The role of manpower is crucial in the payments ecosystem but AI is rapidly changing this belief. With automated payments users and merchants both are at ease since recurring and regular payments have become self-performing with AI integrated automation. The need for human presence in this process has been eradicated successfully with the advent of AI.
8. AI and digitization of payments:
Though seemingly insignificant but AI has transformed digital payments beyond imagination. With smart mobile wallets and transaction methods digital payments have caught on with other conventional and popular methods of payment.
Artificial intelligence is unique in the way it connects consumers, merchants and ties up the whole payment ecosystem. The neural networks help in assimilating information and driving relevant insights that help in taking this industry forward. The future of payments with AI is one with greater avenues for automation and modified ways of delivery. High intelligence face recognition systems and voice payments will become popular in the coming days.
We are yet to see the complete effect of AI in the payments industry. However, with the ongoing enthusiasm for embracing AI related advancements it is soon to catch up with all sectors of this market. All we have to do is to simply wait and watch.