The last three years saw the evolution of traditional payment methods that have made headway mainly due to other innovations.
What used to be as simple as using cash, credit cards, or wiring money has now turned into a complex network featuring advanced payment technologies.
These advancements are dramatically improving transactional speeds and security features whilst re-defining the conduct of financial transactions by business and consumers globally.
Perhaps one of the profound developments in this paradigm has been the use of payment systems that integrate AI tools.AI technologies are changing the payments industry by allowing process automation, improving the efficiency of anti-fraud techniques, and creating better customer engagement.
AI takes center stage
For the organizations, the tools based on AI enable operational effectiveness, mitigate human errors, and optimize decisions based on data in real-time.This is very critical as the objectives of the organizations are to enhance the payment modes in terms of the quality, quantity, and security level to the delight of the customers.
While also enhancing productivity, AI also takes center stage in securing transactions.Current machine learning algorithms are more efficient than traditional ones in flagging fraudulent transactions by analyzing user behavioral patterns and tracking user activity.
In addition to stopping fraud from happening, payment systems will be able to mitigate the risk of fraud in advance and enhance the protection of sensitive information by making use of the tools provided by AI.What's more, the adoption of AI is also encouraging new solutions in customer service.
From personalized options to voice payments or even predictive analytics suggesting the best course of action depending on the consumer’s actions, there are many methods by which AI improves the payment process.
Helping companies remain relevant
Such innovations are helping companies remain relevant in a world increasingly dominated by the internet, where consumer desire for speed, convenience, and safety exceeds that of any other time in history.At a recent conference in Tel Aviv, Money TLV AI Payments, discussions were held on these topics.
Ben Herut: Director of Risk, Chargeflow, a risk-tech startup specializing in chargeback management and friendly fraud prevention.
“While most chargeback automation tools rely on static templates and preset rules, we created a superior product by utilizing AI and machine learning, unlocking the true power of intelligent automation.”
Michal Ohana, Partner and head of the Financial Regulation dep. At Shibolet, she mentioned "the importance of how the regulator provides tools to financial entities using AI, on the one hand, but with the establishment of an orderly and hermetic risk management system, on the other hand, to prevent exposures and risks to the end customers."
Zack Levine - GM – Israel at Checkout.com , Checkout.com is a leading digital payment platform for Enterprise merchants like Playstation, UberEats, Alibaba.
They have raised $1B+ and are continuing to build out their local Israel office in Tel Aviv.
"Our merchants are extremely focused on maximizing their online conversion and acceptance rates because doing so increases their revenue.
Our core intelligent acceptance engine has long used Large Language Models for this, and they are getting better and better over time."
Keren Aviasaf-Migdal CEO at PaymentsOp "Our goal in producing the event and holding a panel on applications of artificial intelligence in payment systems proved that there is still room for innovative and creative solutions both in the user experience, in improving performance of acceptance rates, in models of clearing fees and in the merchant's support.
In my estimation, today we are only seeing the first buds of artificial intelligence integration in payment systems, and we will be surprised by how far it will take us in the near future."
As we move forward, it is clear that AI will continue to be a cornerstone in the development of payment technologies. It’s no longer just a "nice-to-have" addition; it has become essential for any business looking to optimize its payment processes and stay ahead of the curve. With AI driving new levels of efficiency, security, and personalization, the future of payments is more dynamic and promising than ever before.