Technology has even started revolutionizing the payment industry. Cash transactions are becoming a thing of the past. It can be said that cash transactions almost don’t take place that much in the post-covid world. The entire world has started embracing digital payments.
But the digital developments in the payment industry started a long time ago. Net banking, digital wallets, swiping cards, and everything has been the latest digital payments trends. The Cpovid-19 pandemic saw a rise in the extent of online shopping. As a result, digital payments were also on the rise.
In the event of rising dependency on digital payments, cybersecurity threats and frauds have also increased. Therefore, fintech companies are focusing on introducing intelligent payment solutions. Artificial Intelligence (AI) has been responsible for addressing the current market needs.
AI also helps in making digital payment systems more robust. It is crucial to know that AI is no longer limited to securing the payments system. Look at some ways in which AI has transformed the digital payments industry.
1. Pay-by-face
Visa card payments require Near Field Communication. This technology is beyond contactless card payments. It can help in driving close-range payments without swiping the card. You are not even required to enter the pin till a certain amount.
The face recognition feature of AI aids face payment. This requires minimum engagement by customers. They can simply pay by scanning their faces without even taking out their card from their wallet. The extra steps in payment are eliminated to provide true contactless payments. It helps in speeding up the payment process and improving the overall experience of the customers.
2. Seamless Transfers
Customers want a payment transaction free of glitches. Payment delays frustrate both buyers and sellers. The buying experience becomes less than pleasing. It also doesn’t reflect well on the payment gateway. However, the worst part of this is that the seller is unable to provide a hassle-free experience to the buyers.
AI-powered stores use a futuristic approach to identify customers via a mobile app. The AI tech ensures that the buyers have a smooth experience, and the payment process gets over seamlessly.
Even Amazon has an efficient AI-powered store. Sensors are placed throughout the stores to track what customers are buying. The sensors also track which payment methods are used by the customers. The checkout point at the store is free of lines.
3. Avoid Fraudulent Transactions
The Ecommerce industry has been witnessing frauds and scams with the rise in the use of digitally powered payment systems. Digital payment gateways are focusing on increasing their cybersecurity policies. The payment gateways are meant to ensure that the fraudsters are kept at bay.
Most financial services have inbuilt systems to track and restrict fraudulent activities. The reliance on human intervention sometimes proves to be a weak point that attracts cybersecurity attacks. As the volume of transactions increases, it becomes daunting to identify fraudulent activities at high speed.
Cyber scams occur the moment fraudulent activities go unnoticed. AI can recognize these cyberattacks with the right amount of human input. Therefore, the overall method of fraud detection can be improved. Corporate banking solutions ensure that frauds are detected at a greater speed providing more security and efficiency in online payments.
4. Maintain Financial Health
The integration of AI-based chatbots can be called the most customer-centric of technology to revolutionize the digital payment industry. Virtual assistants are efficient at helping individuals to minimize their debt and manage their savings in a more effective manner.
The AI assistant carries out diagnostics on the financial conditions of an individual. It studies the income and spending goals of the person. It also monitors how regular payments are being handled, such as bill payments. This ensures that the individual is not at risk of paying fines.
With AI assistants, individuals are able to make better and more informed decisions regarding their finances. The users are empowered with predictive decision-making by the chatbots. They can see how their financial situation will pan out. Thus, it creates financial awareness, and users become financially healthy.
5. Banking Chatbots
Banks witness a sheer amount of online as well as offline traffic when it comes to customer support. It can often get overwhelming. Executives need to be recruited, maintained, and trained at the banks to provide customer support. The executives need to become experts in handling customer queries with efficiency. The turnaround time also needs to be reduced.
AI-powered banking chatbots have played a crucial role in revolutionizing the digital payment industry. The conversational chatbots are meant to provide customer service of the highest quality. The chatbots have enabled retail banking solutions to help people in managing their accounts. You will be able to initiate payments within seconds with the help of these chatbots. The wait time for initiating payments has become almost zero.
The AI-powered chatbots can also answer the queries of the customers at an unimaginable speed. They have reduced the pressure on bankers. Furthermore, the banking systems have improved due to the chatbots.
Closing Note
AI systems in the digital payments industry aim to provide a better buying experience to customers. The secure and seamless payment gateways increase the loyalty of customers.
Mphasis 