Slowly and steadily, disruptive technologies like Artificial Intelligence, Machine learning, and AR/VR are seen spreading their wings worldwide. With all curtains open, Siri and Alexa are successfully overcoming our personal assistants. With such inclination towards AI-powered cameras in our phones, it is an untold pressure on developers to deliver nothing but the best. The following post explores different ways through which AI-powered mobile payments can have a great impact on the online realm.
If anyone were to ask me to briefly define the term Artificial Intelligence; I would say “gadgets imitating human actions.” There is a plethora of benefits of using the tech, but one that catches the eye is the ability to perceive the environment and adjust accordingly. According to sources, the wave of AI is already making significant strides in the world of electronics – and digital payments are no exception.
Mobile Payments: Let’s Focus on the “How” Part
There is no denying the fact that a revolution is seen in the financial industry – all thanks to the transformative technologies. We live in an era where people are well-aware of the potential threats and breaches and therefore demand a safe, swift and easy payment structure. In the present scenario, more and more data is being fed to machines for more accurate results. So the stakes are pretty high! One wrong move can destroy everything.
To be precise, customers are connecting anywhere and everywhere to make their lives at ease at any given point of time. Whether it is transferring funds or paying bills, online transactions are gaining momentum like never before. By incorporating machine learning and Artificial intelligence, organizations can feel relaxed in many ways such as:
- Complete the KYC (Know your Customer) online
- Improved customer services
- Changing the way people invest
- Predicting borrower delinquency
- Get real-time authorization of transactions
Quite noteworthy, isn’t it? If we turn pages back, the unbanked population ended up being caught in the quest of cumbersome challenges and infrastructures. By leveraging AI, we are able to harness different potential applications of the technology through its large scale and broad applicability. Unlike earlier, KYC procedures are no longer slow, complex and, of course, ineffective. As of now, other than one identifying critical information, especially provided by the government and biometrics, one can easily analyze a range of third-party data sources including credit reports, CIBIL scores, watch lists, social media, transaction history, and the list goes on!
Uses of AI in Payments
- Banking Chatbots– Smartphone users more often than not tend to engage with chatbots and SMS text messaging services. Financial organizations craving better customer experience and engagement must cope up with this tech or they may have a lot to lose! One of the best examples to quote here is the Bank of America’s chatbot, Erica. Here, via voice or text message, customers can easily communicate so that they can keep up with their finances. Another example is PayPal, which incorporates its chatbots with Facebook Messenger. This, in return, enables users to make a payment within the app. Everything is done without much hassle.
- Predictive Analytics and Machine Learning– AI can help companies identify patterns in data to customize e-commerce for individuals. If we take a close look at the process of predictive analysis, it can mine through large quantities of data quickly and efficiently. More and more companies are seen utilizing big data to understand their consumer’s spending habits. What they find is crucial information in regard to their end-users in the timeliest manner. This can lead to an increase in engagement and improved business planning. By incorporating both Artificial Intelligence and Predictive Analysis, one can receive actionable insights like never before. For instance, Capital One has the potential to create new products and deals for their consumer based on their spending behavior.
- Fraud Detection– One of the finest ways AI technologies seem to be impacting mobile payment and improving the end-user interaction is transaction filtering to prompt only high-risk transactions with a security chargeback layer. As a result, it avoids deterring good customers returning to abandoned carts or performing frequent, low-risk transactions by utilizing real-time attributes like geolocation, behavioral analytics, and physical biometric traits to identify charges which might be fraudulent in nature. Applying AI to mobile payment processes is aiding in reducing customer friction and might encourage mobile sales. Fraud platforms that employ emerging technologies to fight fraud are another example of how artificial intelligence is changing mobile payments.
By now, I am sure I have made my point clear. Transforming many aspects of traditional processes is a win-win situation and the digital payment landscape is no longer an exception. Furthermore, it is safe to say the possibilities for future implementation are nearly endless.