The Latest Ai In The Payments Industry Statistics Explained
By 2022, it is expected that 90% of all financial firms will be using AI tools in their payments ecosystem (Source: Deutsche Bank)
The statistic indicates that by the year 2022, approximately 90% of financial firms are projected to incorporate artificial intelligence (AI) tools into their payments ecosystem. This suggests a widespread adoption of AI technologies within the financial industry, specifically aimed at improving payment processing and related functions. Implementing AI tools can offer benefits such as enhanced efficiency, faster transaction processing, improved accuracy, fraud detection, and personalized customer experiences. The trend reflects the increasing reliance on innovative technologies to streamline financial operations and stay competitive in the rapidly evolving digital landscape. The statistic also highlights the significance of AI in modernizing payment systems and shaping the future of financial services.
It is expected that the AI in the payment market will reach USD 12.7 billion by 2026 (Source: Market Research Future)
The statistic states that it is projected for artificial intelligence (AI) in the payment market to grow to USD 12.7 billion by the year 2026, as indicated by Market Research Future. This forecast suggests a substantial increase in the adoption and integration of AI technologies within the payment industry over the next few years. The significant growth in the market size indicates the potential for AI to revolutionize payment processes, enhance security, improve efficiency, and provide personalized customer experiences. Businesses across various sectors are likely to continue investing in AI solutions to streamline payment operations and stay competitive in the evolving digital landscape.
AI can help reduce the rate of false declines in payment by up to 70% (Source: Global Banking and Finance)
The statistic indicates that artificial intelligence (AI) technology has the potential to significantly reduce the occurrence of false declines in payment transactions by up to 70%. False declines happen when legitimate transactions are incorrectly flagged as potentially fraudulent and subsequently declined. This can be frustrating for both the customer and the merchant, leading to lost sales and decreased customer satisfaction. By leveraging AI algorithms and machine learning models to analyze patterns in transaction data, financial institutions can enhance their fraud detection capabilities and better distinguish between genuine and suspicious transactions. As a result, the implementation of AI technology in payment systems can lead to a substantial improvement in the accuracy and efficiency of fraud prevention measures, ultimately benefiting both the businesses and the customers involved in payment transactions.
As per World Payments Report 2020, AI, along with other technologies, will contribute to a 17.4% compound annual growth rate of non-cash transactions for 2019-2023.
The statistic from the World Payments Report 2020 suggests that artificial intelligence (AI) and other emerging technologies are expected to play a significant role in driving a compound annual growth rate of 17.4% for non-cash transactions between 2019 and 2023. This indicates that advancements in AI are poised to revolutionize the way financial transactions are conducted, leading to a substantial increase in the volume of digital payments over the next few years. By leveraging AI capabilities such as data analysis, fraud detection, and personalized customer experiences, businesses in the financial sector are likely to benefit from improved operational efficiency, enhanced security, and better customer engagement, ultimately fueling the growth of non-cash transactions globally.
AI applications in payment processing are forecasted to save businesses $447 billion annually by 2023 (Source: Juniper Research)
The statistic indicates that Artificial Intelligence (AI) applications in payment processing are projected to bring substantial cost savings to businesses, amounting to $447 billion annually by the year 2023 as estimated by Juniper Research. This forecast suggests that the integration of AI technologies in payment systems will lead to increased efficiency, accuracy, and automation, resulting in significant financial benefits for organizations across industries. The use of AI in payment processing can streamline transactions, reduce errors, detect fraud more effectively, and enhance overall operational performance, ultimately translating into substantial cost savings for businesses worldwide in just a few years.
As per a survey by Accenture, 64% of payment executives think that AI has a high impact on payment technology.
The statistic indicates that 64% of payment executives, as reported in a survey by Accenture, believe that artificial intelligence (AI) has a significant influence on payment technology. This suggests that a majority of decision-makers in the payment industry see AI as a transformative technology that can greatly impact how payments are processed and managed. The high percentage reflects a widespread recognition among industry leaders that AI has the potential to enhance the efficiency, security, and overall performance of payment systems. This statistic highlights the growing importance of AI in driving innovations and advancements within the payments sector.
It is estimated that the global spending on AI in banking (including payments) will reach $6 billion by 2023 (Source: IBS Intelligence)
The statistic indicates that global spending on artificial intelligence (AI) in the banking sector, including payments, is projected to reach $6 billion by the year 2023, according to data from IBS Intelligence. This suggests a significant investment in AI technology within the banking industry, likely driven by the increasing adoption of automation, machine learning, and data analytics to enhance operational efficiency, customer service, and security. The substantial financial commitment to AI in banking reflects a growing recognition of the potential benefits that AI can offer, such as improved decision-making, personalized customer experiences, and fraud detection, highlighting a shift towards digital transformation and innovation in the financial services sector in the coming years.
In the U.S, 61% believe that AI will be prevalent in the finance industry by 2025 and the majority of the transactions will be automated (Source: PYMNTS)
The statistic presented indicates that a majority of people in the United States, specifically 61%, anticipate a significant presence of artificial intelligence (AI) in the finance industry by the year 2025. This suggests that there is widespread belief in the potential for AI to greatly impact and transform the financial sector, particularly through automation of transactions. This statistic reflects a growing acceptance and expectation of technological advancements in finance, whereby AI is seen as a key player in reshaping the industry landscape in the near future. This sentiment likely stems from the increasing adoption and utilization of AI technologies across various sectors, highlighting the potential for AI to revolutionize how financial transactions are conducted.
By 2025, AI can help reduce operational costs for banks by 22% (Source: AutonomIQ)
The statistic suggests that by the year 2025, banks can potentially experience a reduction in operational costs by 22% by leveraging artificial intelligence (AI) technology. This reduction in operational costs can be attributed to the automation of various processes within banking operations, leading to increased efficiency, reduced manual workload, and improved accuracy in tasks such as customer service, fraud detection, risk management, and regulatory compliance. AI can enable banks to streamline their operations, optimize resource allocation, and enhance overall decision-making processes, ultimately resulting in significant cost savings. The potential benefits of AI in the banking sector underscore the transformative impact of technology on improving operational efficiency and competitiveness in the industry.
92% of European banks are investing in machine learning and AI to improve their payment services (Source: Finextra)
The statistic reveals that a significant majority of European banks, specifically 92%, are actively incorporating machine learning and artificial intelligence technologies into their operations with the specific goal of enhancing their payment services. This indicates a widespread recognition within the banking industry of the potential benefits that advanced technologies can offer in terms of optimizing payment processes, increasing efficiency, and improving customer experience. The proactive adoption of machine learning and AI signals a strategic approach by European banks to stay competitive in the rapidly evolving financial landscape and adapt to the increasing digitalization of payment services. This trend underscores the importance of innovation and technology in ensuring that banks can meet the changing needs and expectations of their clients in a digital-first environment.
Implementation of AI in payments can help reduce identity theft cases by 60%, according to Business Insider.
The statistic indicates that the implementation of artificial intelligence (AI) technology in the payments industry has the potential to significantly reduce identity theft cases by up to 60%, as reported by Business Insider. This suggests that AI-driven systems are able to more effectively detect and prevent fraudulent activities, such as unauthorized use of personal information for fraudulent transactions. By leveraging advanced algorithms and machine learning capabilities, AI can analyze vast amounts of data in real-time to identify patterns and anomalies that may signal potential threats. As a result, the adoption of AI technology in payment systems can enhance security measures and provide greater protection for consumers against identity theft, ultimately contributing to a safer and more secure payment ecosystem.
According to a 2020 report, the fraud detection and prevention market, a key application of AI in payments, is expected to reach $63.5 billion by 2023. (Source: MarketsandMarkets)
This statistic indicates that the market for fraud detection and prevention solutions, which utilize artificial intelligence technology within the payments industry, is projected to grow significantly by the year 2023. Specifically, the market is predicted to reach a value of $63.5 billion based on a report from 2020 by MarketsandMarkets. This growth is likely driven by the increasing adoption of AI-driven technologies to combat fraudulent activities in digital payments and transactions, reflecting a growing awareness among businesses and consumers of the importance of robust security measures in the fast-evolving landscape of electronic financial transactions.
According to McKinsey, AI can add up to $1 trillion of additional value in the payments industry.
The statistic that AI can add up to $1 trillion of additional value in the payments industry, as reported by McKinsey, suggests that the integration of artificial intelligence technologies has the potential to significantly impact and enhance the efficiency, profitability, and overall performance of payment systems. AI can offer various benefits such as improved fraud detection, personalized customer experiences, streamlined processes, and enhanced decision-making capabilities. This substantial value addition indicates the growing importance of AI applications in the payments sector, driving innovation and transformation within the industry to meet evolving consumer demands and market dynamics.
Visa states that card-not-present fraud, where AI is largely used, dropped by 18% in 2018 due to collaborative analytics, AI, and information sharing.
The statistic provided by Visa indicates that instances of card-not-present fraud, which often involve conducting transactions online or over the phone without the physical presence of the credit card, decreased by 18% in 2018. This decline was attributed to the successful application of collaborative analytics, artificial intelligence (AI), and the sharing of information among various entities in the industry. By leveraging advanced analytics and AI technologies, financial institutions and payment processors were able to better detect and prevent fraudulent activities. Moreover, the sharing of critical information and insights across different stakeholders played a significant role in enhancing fraud detection capabilities and strengthening overall security measures in the payments ecosystem. This joint effort led to a notable reduction in card-not-present fraud, highlighting the effectiveness of utilizing data-driven approaches and promoting collaboration in combating financial crime.
Nearly 80% of banking executives believe that AI will revolutionize the way banks gather information and interact with customers, which will include payments (Source: Narrative Science)
The statistic highlights a significant belief among banking executives that artificial intelligence (AI) will fundamentally transform the banking industry, particularly in the way information is collected and customer interactions are conducted, including payment services. With nearly 80% of banking executives holding this view, it suggests a widespread consensus within the industry on the potential impact of AI technologies. The shift towards AI-driven processes is expected to enhance efficiency, personalization, and convenience in banking operations, indicating a strategic focus on leveraging technology to optimize customer experiences and operational processes in the banking sector.
AI’s potential return on investment in payments for retail businesses is estimated to be approximately 300% (Source: McKinsey & Company)
The statistic that AI’s potential return on investment in payments for retail businesses is estimated to be approximately 300% means that for every dollar invested in integrating AI technology into their payment systems, retail businesses can expect to see a return of three dollars. This estimation, provided by McKinsey & Company, suggests that AI technologies have the potential to greatly enhance the efficiency, accuracy, and overall effectiveness of payment processes within the retail industry. By leveraging AI in payment systems, retail businesses stand to benefit from reduced errors, improved customer experiences, increased operational efficiency, and ultimately a significant increase in their financial returns, making AI a highly attractive and lucrative investment for retail businesses seeking to optimize their payment processes.
84% of respondents (business professionals) have seen their payment processes improve because of artificial intelligence and automation (Source: Financialexpress.com)
The statistic shows that a majority (84%) of the business professionals surveyed reported experiencing improvements in their payment processes as a result of implementing artificial intelligence and automation technologies. This indicates a high level of success and efficiency in using these advanced technologies to streamline payment procedures within their organizations. The positive impact of artificial intelligence and automation on payment processes suggests that businesses are increasingly recognizing the potential benefits of integrating cutting-edge technologies into their operations to enhance productivity, accuracy, and speed in managing financial transactions. This statistic highlights the growing significance of leveraging AI and automation tools in optimizing payment processes and staying competitive in today’s fast-paced business environment.
Furthermore, businesses using AI for payment fraud detection experienced a 60% lower fraud rate compared to competitors not using AI, as revealed by a Sift study.
The statistic suggests that businesses utilizing AI technology for payment fraud detection have significantly lower instances of fraud compared to their competitors who do not use AI. Specifically, the study conducted by Sift showed that businesses using AI experienced a 60% decrease in fraud rates. This indicates that AI is a highly effective tool in identifying and preventing fraudulent activities in payment transactions. By leveraging AI algorithms and machine learning capabilities, businesses are able to enhance their fraud detection processes and stay ahead of potential security threats, ultimately reducing financial losses and protecting their customers’ sensitive information.
References
0. – https://www.www.financialexpress.com
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