The latest publication from Hamburg-based market research company yStats.com titled “AI in Payment and Financial Services 2024” explores the impact of AI on payment and financial sectors, covering current implementations, future trends, and projected market sizes, including GenAI, TRiSM, and RegTech.
Major technology trends like GenAI are set to transform the payment landscape
As of today, AI’s integration in payment processing exceeds its presence in remittance and money transfer services, with notable advancements in operations, customer satisfaction, cost reduction, and risk management. In 2024, the report identifies intelligent applications, AI-augmented development, and TRiSM (Technology, Risk, and Information Security Management) as major technology trends poised to reshape the payments landscape. Furthermore, projections suggest that by 2027, the global GenAI market size will display a remarkable double-digit CAGR from 2023. Concurrently, the value of AI in payments is forecasted to soar to more than EUR 55 billion by 2031.
Moreover, the growth in AI investments by banks is set to escalate from 2024 to 2030, with more than 90% of global payment professionals having embraced AI and machine learning to bolster fraud detection. Nonetheless, concerns regarding transparency in decision-making processes linger.
AI innovations are transforming both the embedded finance platforms and B2C E-Commerce
Within the embedded finance ecosystem, AI innovations such as Generative AI (GenAI), Large Language Models (LLMs), and deep learning are reshaping platforms like Square, Shopify, and Amazon. Future developments encompass biometric authentication, customized financial advice, and dynamic risk management, among others.
Moreover, AI’s role in B2C E-Commerce is highlighted, with AI, AR, and VR enhancing customer experiences and shaping purchasing decisions. The report notes that around three-quarters of U.S. retail decision-makers are poised to integrate GenAI into their operations by 2024, reflecting a growing demand for AI-driven solutions. Additionally, chatbots emerge as effective tools in B2C E-Commerce, driven by their efficacy in resolving customer queries.