Guest ArticlesThe Future of Payments with AI During Covid19

David Stellini David StelliniMarch 9, 202114 min

AI has been setting all sectors at blaze except the payment sector. However, the pandemic trod a different course for AI in payment solutions. Catch the full story here


Machine Learning (ML) and Artificial Intelligence (AI) payments are not far-off future technologies. It is interesting to know that artificial intelligence has long been deployed in banking and credit card management systems and to detect fraudulent activity. It is now being widely applied in various areas in the payment and finance industry.

The banking sector has been adopting the use of AI extensively in their services at a very low rate. This is because they had a feeling that their internal accumulated data could provide the required insight into customer behaviour. However, the reality is that they have not been able to identify patterns that would help them to know which products and services are relevant in the market. This article aims at analysing the aspects where AI is a key player in the financial industry.

Enhancement of Fraud Detection

About two decades ago, the emergence of e-commerce drastically revolutionized the buying and selling of commodities and services in an online setup.

Currently, people can purchase products at any time of the day and are not bound by any borders or time zones. Subsequently, this has created a place where real-time payments need real-time fraudulent activity detection.

Given the number of transactions that take place electronically, it is virtually impossible to have human beings monitor such transactions on their own.

Digital payment transactions are anticipated to increase by a huge margin in the near future. Therefore, more and more use of AI to facilitate payments is expected to be the trend for most financial institutions. Artificial intelligence systems are used to send notifications to customers when they detect a fraudulent activity or an activity that does not seem normal. What the AI does is to learn the consumer behaviour, and be able to alert them when they spot outliers to the learned behaviour. If you want to have a payment website, Allfront helps startup businesses create web apps that follow the latest trends in payments.

Emergence of AI-Powered Retail Stores

AI-powered stores are a new concept in the payment world. It means the recognition sensors put in the entire store and helps to mitigate having to go through the traditional checkout procedure. It does so by detecting the items being picked by customers and charging them. This concept is currently being used by Amazon, so that customers don’t have to wait in long queues. AI-powered stores are going to become a popular trend in the coming future because the Covid19 pandemic means that people will be avoiding the traditional check-out process.

Increased Use of Computer Vision Payment Transactions

Many payment companies are increasingly using computer vision in their transactions.They are experimenting with various features such as the use of facial recognition systems to replace credit cards and other payment modes in authorizing payments. The benefit of computer vision features such as facial recognition, gesture detection and voice recognition systems are, they are more secure because it is difficult to fool them. In the future, people will only be using their faces and voice to authorize their payments and skip using credit cards or cash. More financial institutions are using the personalized approach in matters of payment and lending. The use of AI in payments helps to learn the spending behaviour of each customer.

Enhanced Personalized Service

Firms are incorporating artificial intelligence services in other aspects of their business as well. AI-powered chatbots are being adopted by payment firms to interact with their customers, answer questions, make online payments, and navigate their users across the company’s website or application.

The chatbot is a promising use of AI in payments and is an advanced expression of communication between machines and human beings. It is an AI-driven computer program that mimics the conversation with a customer in a natural language. It communicates by the use of websites, mobile apps, messages and telephones.

There are numerous companies that use chatbots to help their customers to check their account balances, make basic account inquiries, and transfer funds from one account to another. Ingenico Group in collaboration with IBM Watson have an AI-driven messaging chatbot that assists merchants in retail, hotel and hospitality sector to make payment transactions with their customers.

The chatbot uses natural language processing and can interact with customers using several languages. This helps to identify customer’s interests, and enable them to make their payments using a secure payment API (Application Programming Interface).

AI algorithms provide lenders with the required insight so as to identify which customers to lend money and what amount depending on their behaviour.


The use of artificial intelligence in payments and other areas has evolved for decades to become part and parcel of our lives. Artificial intelligence provides exciting and limitless opportunities.

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David Stellini

David Stellini - Co-founder @, Seasoned fintech application developer, and co-founder of AllFront, a talented UX / UI team that specializes in front-end development for fintech startups and enterprises.

David Stellini

David Stellini

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