The payment industry is experiencing tectonic shifts as the world fights the COVID-19 crisis. The immediate challenges facing the transaction infrastructure includes restricted physical payments, slammed retail and commerce, declined B2B cashflows, etc. In this phase of global uncertainty, artificial intelligence (AI) is emerging as a propeller for digital businesses. Machine learning in payments is enabling banks, FinTech players, and payment providers to join forces and support customers in online purchases.
As a well-established provider of machine learning development services , Oodles AI explores some innovative AI solutions to reboot the payment industry.
How Will COVID-19 Impact the Payments Industry
The ongoing coronavirus pandemic is projected to have long-term implications on the global payment industry. Mckinsey suggests that sectors like airlines, tourism, and retail are witnessing a massive impact of continuing global shutdown including-
a) Reduced cross-border transactions
b) Disrupted supply chains and B2B transactions, and
c) Decreased retail and point-of-sale payment volumes.
The global consultancy projects a negative revenue growth for the payment industry due to declining economic activities and changing consumer patterns.
To counter the downfall, the wider financial sector is adapting to the “new normal” by innovating payment infrastructures worldwide. For contactless transactions, global payment firms are shifting their focus on digital methods of payments, such as-
a) Contactless payments using RFID technology and virtual cards
b) Remote-commerce facilities for small merchants
c) Mobile wallets and tap-and-go checkouts at supermarkets
d) Payment services through popular communication apps like WhatsApp, and more.
“We cannot imagine going to physical banks anymore”
Also, the coronavirus transition is encouraging banks to partner with FinTech players to promote digital transactions among customers. Raj Phani, Founder and Chairman of Zaggle, highlights the upcoming trends in the payment and Fintech industry saying-
“With banking data and services opening up, fintech players would come with so many innovative and disruptive ideas by combining AI/Blockchain along with massive banking data that we cannot imagine any business or even individuals going to Physical Banks anymore in future.”
That said, let’s explore how payment providers, banks, and FinTech companies can harness artificial intelligence development services to stay afloat and support customers.
Machine Learning in Payments: Applications and Opportunities Amidst Crisis
1) Computer Vision for Authorized Access
AI’s vast set of technologies including computer vision is gaining momentum amidst coronavirus lockdown with its contactless identity recognition capabilities. Powered by machine learning algorithms, computer vision is beginning to disrupt traditional POS systems and waiting queues at supermarkets.
Learn more: Machine Learning in Payments