Report detailing the application of Artificial Intelligence within the domain of financial transactions
Bei Payment & Banking, an independent economic hub, has recently released a comprehensive whitepaper that delves into the current state and future direction of Artificial Intelligence (AI) in the payments industry. The whitepaper, which is now available for download, combines the expertise of leading companies, including established financial institutions, dynamic fintechs, and tech providers.
The Current State of AI in Payments
The whitepaper reveals that AI is making significant strides in the payments sector, particularly in the areas of fraud detection and customer experience personalization. According to a global survey of senior payment professionals, over 80% believe the best use of AI and machine learning is in fraud detection and prevention, due to the rising trend of payment card fraud expected to increase significantly through 2028[1].
AI-powered chatbots and personalized customer experiences also rank highly as key application areas. Firms are aiming to improve engagement and streamline support processes within payments[1]. The payments industry is actively exploring and implementing AI-driven solutions to reduce costs, speed up innovation, and enhance security. This includes the use of generative AI and agentic AI models, which are rapidly gaining traction for wide-ranging applications such as fraud prevention and customer experience improvements[2].
The Future Direction of AI in Payments
The whitepaper predicts that the payments industry is on the brink of a significant realignment, with mergers and acquisitions aimed at consolidating market strength and accelerating AI adoption. Firms are motivated to compete with FinTech disruptors by embedding AI deeply into their payment platforms[2][3].
Payments are increasingly integrated into vertical specialized SaaS workflows, moving beyond transactional roles towards becoming core value drivers and competitive differentiators for software platforms[3]. Leading financial institutions are investing heavily in generative AI and cloud technologies to improve internal productivity, automate meeting summaries, and ensure robust safeguards around AI use[4].
The AI in finance market is projected to grow at a compound annual growth rate (CAGR) of over 30% from 2024 to 2030, indicating expanding adoption and investment in AI-powered payment innovation[4].
Key Takeaways
- AI is transforming payments with a primary focus on fraud mitigation, customer experience personalization, operational efficiency, and product innovation.
- The area of generative AI and agentic AI represents significant new advances enabling rapid deployment and testing of AI use cases across the payment ecosystem.
- Industry consolidation and vertical SaaS integration are driving payments to become deeply embedded, AI-enabled business workflows.
- Leading financial institutions’ substantial investments and cloud-enabled capabilities are catalyzing widespread AI adoption.
- Strong market growth forecasts underscore AI as a central driver shaping the future payments landscape.
The whitepaper from Payment & Banking provides in-depth insights into the development and future of AI in the payments industry. It is aimed at decision-makers, developers, and anyone who wants to understand how AI is changing the payments industry. The whitepaper also highlights the importance of meeting both technical and ethical requirements in the future, as AI becomes more prevalent in banking and payments.
[1] Source: Payment Exchange 2025 [2] Source: Bei Payment & Banking Whitepaper [3] Source: Various Industry Reports [4] Source: IBM Institute for Business Value
- The whitepaper shows that innovation in the payments industry is heavily driven by artificial-intelligence, particularly in the areas of fraud detection, customer experience personalization, and product development.
- Moving forward, technology advances like generative AI and agentic AI models are expected to shape the future direction of AI in the payments industry, with a focus on consolidation, vertical SaaS integration, and widespread adoption.
