Gone are the days of cash payments or cheques, and digital payments have found their way through our day-to-day lives. With steady growth and immense potential, the digital payments space has started shaping what the future looks like, especially post-pandemic.
According to COVID-19 and E-commerce: A Global Review report, the pandemic increased the e-commerce share of global retail trade from 14% in 2019 to 17% in 2020. However, with a growing reliance on online transactions and digital payment gateways, there is also an anticipated increase in scams, cybersecurity assaults, and false declines. AI-enabled technologies can tackle these cyberattacks and are gaining momentum in the digital payments space.
Fintech companies are improving their AI solutions to fulfill current market demands while also preparing for a fail-safe future by making these systems more robust than before. Did you know that the finance industry makes the most investments in AI? In the next ten years, AI will witness an exponential expansion within the fintech industry, and it has already started making a foray.
The widespread adoption of digital transactions makes embedded AI an essential component of digital payment systems. AI has several applications in the finance industry. Let us look at some of the ways AI is transforming digital payments :
- AI-enabled face recognition
- Effortless Transfers
- Countering fraud intelligently
- AI-enabled banking chatbots
It is a seamless, biometric, and secured face recognition payment method, where customers can scan their faces and make digital payments. Eliminating redundant steps improves the purchasing experience for customers, resulting in a hassle-free grab-and-go approach for them. Therefore, it leaves little room for frustration and ensures an increase in shopping basket values.
Imagine facing glitches while making digital payments. Such lags and delays cause frustration for sellers and customers, negatively affecting customers’ shopping experience. Even if customers may not pay attention to such delays or lags while buying online or in-store, subconsciously, it could spell out the difference between sales and missed opportunities for a business in future sales.
Increasing numbers of users now do much of their shopping online and make real-time payments digitally, which led to a spike in fraud and scams. Many e-commerce and fintech companies are using real-time fraud-detection techniques. They are intensifying their cybersecurity spending. They are making use of AI-driven technologies to detect and prevent fraudulent activities. Adopting task-specific AI to spot suspicious transactions will positively impact the fraud resistance of digital payments.
The fintech industry has already begun to put up significant effort to make the payment process easier for customers by introducing chatbots into finance technology. The conversation AI-powered chatbots provide next-level support to customers in greeting them, gathering information about their problem, providing needed information, and accepting a payment from a user.
Innumerable industries have begun to capitalize on the potential AI holds for them, including the finance industry. Digital payments are the future, and the power of having secure, seamless payment gateways powered & protected by AI is immense. Artificial Intelligence continues to transform the financial ecosystem by ensuring a smooth buying experience and increasing LTV to sellers.
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