Online payments are set to increase 11% per year between 2015 and 2020 according to a report from Cap Gemini & BNP Paribas. Companies that accept online payments and transactions are forced to face users’ concerns about accuracy and fraud. PayPal and QuickBooks, for example, have added an extra layer of security protection to their login process. They text an access code to the phone number a user has on record in their account; which identifies the person who is in possession of the phone as the account holder. This is a great enhancement, but it is does not use the more sophisticated solutions companies should be looking to implement using Artificial Intelligence (AI).
AI and Online Fraud Prevention
Card-not-present transactions bring new opportunities for fraud. However, the development of Artificial Intelligence and machine learning for managing massive amounts of data has curbed fraud by detecting when it occurs as well as preventing it before it happens. As with any AI application, transaction fraud prevention programs work is based on identifying patterns and then looking for irregularities within a user’s account.
In our previous post on the Financial Industry, we shared an example of holistic fraud prevention where fraud was detected by a change in the user’s habit – from using a trackpad to a scroll bar. Marketing as sales data collected from website use can offer many potential solutions, such as this example, to ecommerce payment and transaction sites.
New AI Financial Efficiencies
Faster transaction processing saves time, which in turn saves money. It also reduces human errors. New AI efficiencies are set to dramatically improve the customer sales experience for businesses that offer online transaction. In most cases, day-to-day fulfillment and operation costs can be both streamlined and secure.
Conversational chatbots reach consumers where they like to shop; which is anywhere they want at any time of day or night. Chatbots that are driven by AI can provide a personalized conversation with consumers, and they are equipped to answer product or service questions. Even better, you’ll be notified when you’re (likely) running low on shampoo, laundry detergent, or other products you order online. AI is taking the concept of product suggestions to a smarter new level.
Big Players Jump on the AI Bandwagon
The National Business Research Institute reports that over 32% of financial institutions use AI voice recognition and predictive analysis. Huge retailers such as Amazon are using such programs to streamline orders. Amazon uses naturalistic payment with its assistant Alexa for orders that do not require passwords.
Mastercard also uses instant verification online in place of passwords and access codes. Imagine the efficiency savings to the Mastercard network that handles 75 billion transactions per year at 45 million global locations.
Just as some of the great human brains of the last few decades have moved the bar significantly for technology uses, great algorithm “brains” are bringing us closer and closer towards human-less solutions.