How Can Artificial Intelligence Change Digital Payments in India

How can AI-powered digital payments change the way we do payments in India? Can it go beyond just payments?

It is 2019, and Artificial Intelligence is slowly taking over daily life. We have smart speakers waking us up and opening our curtains. We have Siri, Alexa replacing our personal assistants. There are AI-powered cameras in our phones and Japan already has an AI-powered robot teaching math to kids.

BCG reports claim that digital payments will cross USD 600 million in India alone by 2020. So, why not use the power of Artificial Intelligence to conquer the world of digital payments? 

Artificial intelligence ensures that gadgets can now imitate human actions. It perceives the environment it is in and adjusts itself accordingly. It is already making strides in the world of electronics, with smart devices taking care of every human request with a ready answer.

But, how can it change payments?

Artificial Intelligence can change customer experience:

The implementation of Artificial intelligence into the online payment sector is not new. The State Bank of India has already created a chatbot that helps NRIs with their branding woes called S.I.A ( SBI Intelligent Assistant), eliminating queues for customer service. Several banks have added this tool to their website.

An Open market survey has proven that customers prefer quick chatbots when interacting with customer service of any banks.

Artificial Intelligence can also capture digital footprints related to their customers and this can help payment gateways reach out to new customers. AI-based systems can match payments with the customer’s historical data to predict their payment behaviour. For example: If customer’s bank account balance is below the amount required to settle a debt, the AI engine sends a prompt to the consumer to auto-transfer funds from another linked account in order to honour the fees. This helps in avoiding late payments, fees and penalties and results in much more satisfied customers.

Artificial Intelligence can enhance fraud detection:

Fraud-detecting companies are employing Artificial intelligence into their software to detect fraud even before it takes place. Artificial Intelligence provides enhanced monitoring of online payments and responds in real-time to possible fraud cases. For example, AI has gone far ahead to understand how users hold and use their phones. If someone else besides the owner unlocks the phone, the AI platform will recognise that the person is not the owner.

Artificial Intelligence in mobile payments will allow filtering on any high-risk transaction by using a security chargeback layer.

This will improve the end-user interaction. AI allows customers to revisit abandoned carts and perform low-risk transactions by using real-time geolocation, physical biometric scanners (Face ID) and other behavioural analytics to detect fraud. AI could be the solution to customer retention, and this could increase sales and the number of online payments.

Artificial Intelligence can improve operational efficiency:

Payment gateways in India will benefit from implementing AI into their digital payments gambit The implementation of Artificial intelligence is changing the way consumers are investing their money. For companies engaging in online payments, AI has reduced processing times and the human errors that can occur with the size of the digital transactions taking place.

This is one of the primary reasons why the digital payment sector is taking on Artificial intelligence, to handle the onset of billions of digital transactions. It has so far, increased automation for companies and helped restructure different operating models and processes for companies. With regard to operational efficiency, AI has also helped handle huge volumes of data to generate financial reports and take care of compliance requirements, processes that would take up a lot of labour in any other case. Many key players in digital payments are expediting the lending process using machine learning and incorporating the capability to build into the multi-layered security strategy of the payment gateway.


AI has a long way to go before making a solid entry into every payment gateway or payment solutions. Fortunately, there are already several implementations of AI taking place where needed. Instamojo too carries out online payments in a seamless, secure manner. If you have a business, set up your online payment link with Instamojo. Keep up with the times, get online.


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