Role of Artificial Intelligence in Making Payment Systems Smarter


  • Neha Vivek Dharurkar, Ramakrishnan Raman, Ameya Makarand Lonkar


Purpose: To understand use-cases and explore potential use-cases in which Artificial Intelligence (AI) can make Payment Systems smarter in terms of improved turn-around time, reduced costs, reduced manual intervention and robustness.

Methodology: The study was conducted by reviewing literature and interviewing the industry experts to understand payments processing, current scenario with respect to implementation of AI in payments industry and the future opportunities in AI. Based on the same, authors explore the possible areas where AI can be adopted.

Findings: The findings of study suggest that there are multiple use cases in payments industry such as compliance and fraud management, optimization of payment processing and customer service. Application of AI will not only make payment systems smarter and effective but also robust and secured than ever before.

Research Implications: As authors identify multiple potential areas in payments industry wherein AI can be adopted, scholars in payments as well as AI can cohesively work towards practical implementation of such use cases. This will also enable FinTech companies to develop innovative products for payments industry.

Originality / Value: This research paper adds use-cases of application of AI to existing implementations. Further, the paper considers various payment systems across the world giving it a global value.