The last three years saw the evolution of traditional payment methods that have made headway largely 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 while redefining the conduct of financial transactions by businesses and consumers globally.
Perhaps one of the most profound developments in this paradigm has been the use of payment systems that integrate artificial intelligence tools.
AI technologies are changing the payment industry by allowing process automation, improving the efficiency of anti-fraud techniques, and creating better customer engagement.
For 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 quality, quantity, and security level to the delight of the customers.
In addition to enhancing productivity, AI also takes center stage in securing the transactions.
Enhanced security
Current machine learning algorithms are more efficient than traditional ones in terms of flagging fraudulent transactions by analyzing users’ behavioral patterns and tracking user activity.
In addition to preventing fraud, 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 regarding 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.
Such innovations are aiding in 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.
“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,” said Ben Herut, the director of risk at Chargeflow, a risk-tech start-up specializing in chargeback management and friendly fraud prevention.
Michal Ohana, partner and head of the financial regulation department at Shibolet, explained 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.”
Also at the conference was Zack Levine, the vice president at Checkout.com, a digital payment platform for Enterprise merchants like Playstation, UberEats, and Alibaba. It has raised $1b. and is based 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,” said Levine.
“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 the performance of acceptance rates, in models of clearing fees, and in the merchant’s support,” Keren Aviasaf-Migdal, the CEO of PaymentsOp, said.