Artificial Intelligence (AI) is changing businesses by allowing a combination of technology to perform activities that traditionally require human intelligence. AI is altering how businesses operate internally and externally; communicate with their customers and how they strategise their business development.
We used to speak of AI as the future, but it is here already. We now have Alexa, Google Assistant, Siri and ChatGPT to assist us in our day to day lives.
In November of 2021, artificial intelligence company OpenAI launched ChatGPT, an interactive chatbot that can fulfil a number of tasks for its user. From typing out a text response for someone to coming up with an entire dissertation on any given subject. As OpenAI mentions in a blog explaining more about this chatbot, “ChatGPT interacts in a conversational way. The dialogue format makes it possible for ChatGPT to answer follow-up questions, admit its mistakes, challenge incorrect premises, and reject inappropriate requests.”
We even played around with Dall-E 2, another one of OpenAI’s developments, to create this blog’s image. Dall-E is an AI system that creates realistic images or art based on the description you input.
But, AI is also transforming the payments industry, with the aim of providing consumers and businesses with a more secure and convenient online payment experience.
Why is AI valuable in the payments industry?
Card payments, digital wallets, bank-transfer apps and many other payment methods are used by customers on a regular basis.
AI is able to enhance processes in the payment chain by detecting fraud and improving risk assessment speeds. By leveraging AI advances such as facial recognition and two-factor authentication, businesses can provide a secure payment experience to their customers. Speaking of experience… how do enhanced security measures and reduced processing times sound? Quite valuable.
What does it mean for the future of the payments industry?
Fraud detection
AI enables security for businesses, consumers and banks by helping detect fraudulent activity promptly. AI-powered tools are used to analyse customer behaviour patterns, identifying suspicious activity across multiple channels, and detecting fraudulent activities such as identity theft and payment fraud.
We’re all familiar with facial recognition, two-factor authentication (2FA) and 3D Secure (3DS) protocols. It’s all AI, and it’s being used to protect your online payments along with other security measures.
By using AI to monitor online transactions, banks and acquirers like Truevo can reduce the risk of potential losses due to fraudulent activities while providing customers with a secure payment experience.
Read more: Common online payment fraud trends and solutions
Security and authentication
By leveraging machine learning, companies can quickly identify fraudulent transactions and take preventive action to stop them from occurring. Customers’ personal information can be protected from cybercriminals with the assistance of ID verification using customers’ biometric data such as facial recognition or two-factor authentication (2FA).
Customer experience
What sounds better than tailored payment recommendations that assist in optimising a payment process? AI does that too. Based on the detection of personalised spending patterns, it enables automated payments, reducing the amount of time and effort customers spend making payments.
Finally, Chatbots – systems built by businesses to have conversations with humans, similar to ChatGPT – have been developed to improve the customer experience to offer timeous and seamless service which is crucial in the payments industry.
AI is here to stay and is evidently impactful in the payments industry by reducing processing times, handling data, and meeting regulatory compliance needs. As a payment processor, adapting and embracing the ever-changing environment is crucial to process millions of transactions. Whilst customers gain from enhanced security and experience, Truevo will continue to make their money flow by processing more transactions with the help of our friend, AI.
To infinity and beyond!
