Technological developments such as artificial intelligence and machine learning
\nhave become widely available and versatile in their use. Over the last two decades
\nmany people have become more aware of and accustomed to using this technology.
\nThis has led to an increase in the adoption and investment in AI by many companies.
\nSince it has become more affordable and accessible in recent years, it\u2019s no surprise
\nthat AI is taking over the digital payment space. As companies and institutions gather
\nlarge amounts of data, numerous transactions have gone digital. Here is how the
\ndigital payments landscape will be impacted by advances in AI.<\/p>\n
Many companies are using AI to personalise the payment process for customers. AI
\nhas the ability to analyse customer spending and can recommend a payment
\ninstrument that best suits the customer\u2019s purchase at the time of payment. This can
\ninclude a cashback method or a debit\/credit card payment.
\nThe emergence of chatbots has been one of the most exciting applications of AI in
\nthe digital payments space. These are slowly replacing humans in the customer
\nservice sector. They have the ability to solve customer queries and provide
\nrecommendations, enhancing the overall customer service experience. Many
\nchatbots allow customers to make payments as well.
\nThe most well-known form of AI is voice-assistants such as Amazon\u2019s Alexa and Siri.
\nThey can perform numerous functions such as order items on Amazon or make
\npayments on e-commerce sites.<\/p>\n
The most important feature of AI is fraud detection. AI has the ability to assess large
\namounts of data and come up with commonalities in fraudulent and non-fraudulent
\ntransactions. With regards to payments, artificial intelligence assesses a range of
\nfactors and assigns a risk factor to each merchant. An unfamiliar IP address or
\nlocation will give a seller a higher risk score. After analysing numerous factors, a final
\naverage score is used to determine if a merchant is fraudulent or not.
\nFinancial institutions such as banks use AI to detect fraudulent transactions in real
\ntime, something that would not be possible with a manual check. AI is always finding
\nnew ways to differentiate between fake and real transactions and improve the
\nsecurity of digital payments.<\/p>\n
Businesses can cooperate with digital payment companies to increase their
\ncustomer base based on recent purchases they have made. When a person makes
\na purchase on an e-commerce website such as Amazon, artificial intelligence will
\nuse an algorithm to suggest similar or complementary products customers can buy,
\nthereby increasing the company\u2019s digital footprint. AI systems have the ability to
\nstudy customer past purchase trends to predict their behaviour.
\nAI also assist customers with their personal bank accounts to make the payment
\nprocess more efficient. If a customer\u2019s debit balance is low AI will prompt the
\ncustomer to auto-transfer funds to their account. This ensures that there are
\nsufficient funds for purchases and bill payments.<\/p>\n
Artificial intelligence aids in investor decision-making which is purely data-driven.
\nWith the increase in the amount of data available, businesses and investors are
\nalways on the lookout for techniques to process the data better and make more
\ninformed decisions. AI along with big-data analytics has resulted in operational and
\nstrategic efficiencies that have been incorporated in all verticals from finance to retail
\nand healthcare. Overall, AI has had helped reduce spending and risk and has used
\nconsumer-centric tools to automate savings and benefit consumers in terms of
\nspeed and cost savings.<\/p>\n
One of the key benefits of AI is that it helps improve the operational efficiency of a
\ncompany. This includes reducing human error through better processing as well as
\nproviding the users with better insights. They are having an even greater impact on
\nthe financial services industry. According to a research conducted by KPMG, AI is
\nset to replace 75% of outsourced financial services in 15 years which will allow these
\ncompanies to develop other areas of the business.
\nArtificial intelligence makes transactions more secure and convenient and is set to
\ntake digital payments to the next level. The integration of AI and payment
\napplications will help transform the fintech industry. Financial institutions are working
\nwith local governments to create an ecosystem that prevents fraudulent transactions
\nwith the help of AI technology. Research has shown that by 2023 the digital
\npayments in India will reach $1 trillion. It is only a matter of time before AI captures a
\nsignificant portion of these transactions.<\/p>\n","protected":false},"excerpt":{"rendered":"
Technological developments such as artificial intelligence and machine learning have become widely available and versatile in their use. Over the last two decades many people have become more aware of and accustomed to using this technology. This has led to an increase in the adoption and investment in AI by many companies. Since it has become more affordable and accessible […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[],"class_list":["post-6721","post","type-post","status-publish","format-standard","hentry","category-digital-payments"],"_links":{"self":[{"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/posts\/6721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/comments?post=6721"}],"version-history":[{"count":9,"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/posts\/6721\/revisions"}],"predecessor-version":[{"id":6771,"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/posts\/6721\/revisions\/6771"}],"wp:attachment":[{"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/media?parent=6721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/categories?post=6721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bijlipay.co.in\/blog\/wp-json\/wp\/v2\/tags?post=6721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}