Intelligent CIO Europe Issue 15 | Page 34

EDITOR’S QUESTION transactions so quickly, while keeping fraud and error rates down. Artificial Intelligence is the threshold of survival for the payments industry – already widely used in finance, AI now has a bigger role to play outside of traditional financial services. The digital landscape is home to a growing number of cybercriminals on the lookout for potential targets. If the payments industry does not adapt its processes and fast, not only will customers be lost to competitors, but companies risk putting themselves in the fore for a cyberattack. Merchants are having to tread a difficult tightrope when it comes to balancing customer experience with effective online security and it seems many are getting it wrong. Purchasing goods online has never been easier for consumers but with this simplicity comes the growing global threat of fraudulent activity. T he payments industry is experiencing a period of constant Digital Transformation. Acting as a driving force for innovation and growing international eCommerce, Digital Transformation has the power to completely transform the payments industry. Here are some key aspects for the industry to consider when embracing the change. According to Gartner, the number of devices connected to the Internet of Things (IoT) is set to increase to 20.8 billion in 2020. Consumers are increasingly expecting their IoT devices to enable more than just carrying out tasks automatically; they also expect them to facilitate payments. The Internet of Things is not a new concept, in fact connected devices with a wide range of functionalities 34 INTELLIGENTCIO are already widely used in the home, a trend that shows no sign of abating. Customers are becoming more aware of the presence of IoT and as a result, there is the growing expectation that it should play a role at every touchpoint of their journey as a customer. The growing use of technology has meant that society has seen a rise in Artificial Intelligence (AI), which is now beginning to play a vital role within the e-payments industry – one which is growing quite dramatically. PPRO research found that bank transfers, debit cards, credit cards, e-wallets and mobile wallets amount to the 122 billion digital transactions made each year. This figure is only expected to rise and the reality is that there is no way the payments industry can process so many Facilitating international payment preferences is imperative to successful globalisation and by maintaining customer bases in international markets and understanding market preferences, merchants are able to continue Digital Transformation on a global scale. “ ARTIFICIAL INTELLIGENCE IS THE THRESHOLD OF SURVIVAL FOR THE PAYMENTS INDUSTRY www.intelligentcio.com