Payment fraud has long been the dark cloud over e-commerce. In 2023 alone, global e-commerce fraud losses hit $48 billion — a massive drain on merchants and consumers alike.
(Source: Juniper Research)
But now, a new era is emerging — where AI + Open Banking are not just combating fraud, but redefining what secure payments look like.
Traditional Cards = High Fraud Risk
Card payments rely on outdated systems that are easily exploited:
• Stolen card data
• Identity theft
• Friendly fraud and chargebacks
Every card transaction exposes both merchants and consumers to unauthorized use and revenue loss.
• Stolen card data
• Identity theft
• Friendly fraud and chargebacks
Every card transaction exposes both merchants and consumers to unauthorized use and revenue loss.
The AI + Open Banking Advantage: Smarter, Safer, Faster
Open Banking replaces card rails with direct, real-time bank authentication, enhanced by AI-driven fraud detection.
Real-Time Authentication — Payments are authorized through the user’s bank in real-time, often with biometric security like face or fingerprint recognition.
AI-Powered Fraud Detection — AI analyzes thousands of data points per transaction — location, device, behavior patterns — to detect and stop fraud before it happens.
No More Chargebacks — A2A (account-to-account) payments are irrevocable, eliminating chargebacks and saving merchants millions annually.
Secure by Design — Open Banking uses strong customer authentication (SCA) and bank-grade encryption, making it safer than cards by default.
Real-Time Authentication — Payments are authorized through the user’s bank in real-time, often with biometric security like face or fingerprint recognition.
AI-Powered Fraud Detection — AI analyzes thousands of data points per transaction — location, device, behavior patterns — to detect and stop fraud before it happens.
No More Chargebacks — A2A (account-to-account) payments are irrevocable, eliminating chargebacks and saving merchants millions annually.
Secure by Design — Open Banking uses strong customer authentication (SCA) and bank-grade encryption, making it safer than cards by default.
The Impact
• Fraud attempts reduced by up to 80% with AI + Open Banking.
• Chargeback rates drop to near zero for A2A payments.
• Faster checkouts + higher trust = increased conversion rates and customer loyalty.
(Source: McKinsey, ACI Worldwide)
• Chargeback rates drop to near zero for A2A payments.
• Faster checkouts + higher trust = increased conversion rates and customer loyalty.
(Source: McKinsey, ACI Worldwide)
