• Perceptions about risk are hindering the adoption of real-time payments, as many companies and consumers are hesitant to leverage these rails for fear of fraud and cybercrime. AI offers the potential to effectively manage these complications.
• Balancing the need for security with a fast and convenient customer experience is a constant challenge for any payments provider, especially one that intends to operate in real time. AI can be a key tool to deliver on this promise.
• FIs and payments providers are recognizing AI’s potential to eliminate payments roadblocks and accelerate the transaction process by improving fraud detection. Firms that have integrated AI into their systems are reporting numerous successes.

Real-time payments are a boon to consumers and companies alike, but they are not without their hurdles. These include the need for rigorous onboarding procedures and anti-money laundering (AML) checks to safeguard against fraud. Even an instant payment as simple as a friend paying another for dinner over a peer-to-peer (P2P) app can create anxiety when the transaction is falsely declined for fraud.

Read more...