Artificial Intelligence transforms payment services

The incorporation of technological tools and changes in consumer expectations have changed payment services. Today, thanks to technology, it is possible to make physical and digital payments through credit or debit cards, transfers, platforms, payment gateways or QR codes. 

Advances in payment services have been accompanied by the emergence of new challenges for the financial sector, such as the increase in the number of fraudulent transactions, which have triggered losses in the millions of dollars. 

However, technology has also provided solutions to the sector's challenges. Different entities in the financial ecosystem have incorporated Artificial Intelligence (AI) in their operations, with the purpose of reducing payment fraud. 

AI enables real-time analysis of consumer, merchant and device payment data. Thus, by studying the amount, purchase history, time, geographic location, type of transaction and IP address, the user's consumption patterns are identified and it is determined whether they are following a usual shopping habit, in order to evaluate the transaction and identify security risks in the operation. 

Thus, AI-based systems have helped to stop fraudulent payments, benefiting consumers and favoring institutions. For users it has meant a safer shopping experience and for financial institutions it has ensured the approval of real transactions without incurring risks. 

Artificial Intelligence, the tool for payment speed and predictability

The new bet of the financial ecosystem is to solve another of the sector's problem areas: delays in the visibility of payments in account balances, which affect financial institutions in their daily settlement and users in the management of their finances. 

Although consumers expect real-time visibility of their spending on their account statement, some purchases take longer than others to appear on balances. Also, on certain occasions, the amount authorized at checkout may differ from the amount ultimately cleared in the customer's account. Both of these factors have adversely affected the payment experience and prevented the user from knowing his or her financial situation in real time. 

Therefore, the financial ecosystem seeks to improve the predictability, transparency and speed of payments. Through AI, companies in the sector have implemented models that can predict the probability that the amount of the transaction will change or not, from the payment to its clearing in the account. The model achieved 98% prediction accuracy, giving financial institutions the ability to update customer account balances in real time. 

In addition, startups have developed predictive models, based on AI, that allow banks to allocate resources to have sufficient liquidity and provide a service that informs customers of the amounts they would have to have available each day to cover their expenses. 

Advances are not limited here. The Colombian company Nuvu created a solution called Smartcash , which revolutionized the way of making payments, since by means of a code it is possible to make collections from any bank, correspondent or digital channel. 

Thus, technology and, in particular, AI have transformed the way payments are made, helping to combat the new challenges facing the financial sector and, consequently, have contributed to improving the experience of the players in this ecosystem.