Artificial Intelligence is being employed extensively within the payment sector
In the ever-evolving world of finance, Artificial Intelligence (AI) is making a significant impact. From multiple payment service providers in the US, such as Axytos, Deutsche Firmenkredit Partner (DFKP), Monei, Stripe, Lemonway, Mastercard, Riverty, Scalapay, and Treezor, to European fintechs and banks, AI is reshaping the way payments are made and secured.
According to the European Central Bank, the Eurozone witnessed approximately 72 billion cashless payment transactions in the first half of 2024, totalling around 113 trillion euros. This surge in digital transactions has paved the way for AI to step in, revolutionising various aspects of the payment industry.
Beyond fraud detection and credit risk analysis, AI is being employed for biometric and behavioral identity verification, customer experience personalization, payment processing automation, and predictive analytics for proactive security and operations optimisation.
For instance, AI enhances biometric authentication methods like facial recognition, voice authentication, and fingerprint scanning, thereby preventing identity theft and account takeovers while improving security and user experience. Behavioural biometrics, which analyse how users type, swipe, or navigate apps, enable continuous authentication that is challenging for fraudsters to mimic.
AI also powers virtual assistants and chatbots, such as Bank of America’s Erica, handling customer interactions like balance inquiries, transfers, and dispute resolution, thereby transforming customer service. It enables highly personalised financial services by analysing individual customer data to recommend tailored financial products and services beyond generic segmentation, greatly improving the customer journey.
For businesses, AI automates bookkeeping and transaction processing, helping small and large merchants operate more efficiently. It also dynamically adapts to emerging fraud and payment patterns, minimising false declines and reducing chargebacks by identifying “friendly fraud” through pattern recognition.
Predictive analytics allow financial institutions to anticipate potential threats and vulnerabilities ahead of time, strengthening proactive defences and operational risk management beyond reactive fraud measures. These AI capabilities collectively transform how both customers and businesses pay, process, and secure payments in the US.
In the areas of Know Your Customer and onboarding, Lemonway, Mastercard, Monei, Riverty, Scalapay, and Treezor are using AI. Klarna, a Swedish payment service provider, introduced an internal AI assistant named Kiki in June 2023, based on OpenAI's language models, to support employees in communication, marketing, and the legal department, including setting up individual contracts.
US credit card issuers Mastercard and Visa have acquired AI providers Recorded Future and Featurespace for fraud detection purposes. Companies like Ixopay, Otto Payments, Ratepay, and VR Payment cooperate with Hawk AI for AI-based transaction monitoring. Cashback companies Payback and Rakuten are optimising their marketing campaigns with the help of AI.
Notably, Qonto has developed its own AI that assists in recruitment by writing job ads and transcribing and analysing job interviews. American Express uses chatbots for customer service and personalised offers based on customer spending behaviour.
In conclusion, the integration of AI in the payment industry is not just a trend but a fundamental shift towards a more secure, efficient, and personalised financial ecosystem. As AI continues to evolve, we can expect even more transformative changes in the near future.
Sources:
[1] Unsere Website-URL/hier-setzen-banken-und-fintechs-heute-schon-ki-ein/ (Infographic on the use of AI in banks and fintech) [2] Various articles from 2025 on AI applications in the US payment industry. [3] Various articles from 2024 on AI's impact on fraud detection and prevention in the payment industry. [4] Various articles from 2023 on AI's role in customer service, personalisation, and operational optimisation in the payment industry.
- The fintech industry, emphasizing finance and technology, is leveraging Artificial Intelligence (AI) to revolutionize various aspects of payment processing, such as biometric and behavioral identity verification, customer experience personalization, payment processing automation, and predictive analytics for proactive security and operations optimisation.
- European banks and fintechs, including Lemonway, Mastercard, Monei, Riverty, Scalapay, and Treezor, are employing AI in areas like Know Your Customer (KYC) and onboarding, demonstrating that AI is not just a trend, but a fundamental shift towards a more secure, efficient, and personalized financial ecosystem.
