AI-based payments: a revolution for emerging markets

Artificial Intelligence (AI) revolutionizes payments in emerging markets by offering solutions that promote financial inclusion, enhance fraud security and simplify compliance. In regions such as Africa, Asia and Latin America, where infrastructure and accessibility challenges remain, innovations such as iWallet modernise traditional systems and accelerate the adoption of digital payments. These advances contribute to integrating these dynamic economies into a more equitable and connected global ecosystem.

FACTS

• Artificial intelligence (AI) plays a key role in the transformation of payment systems around the world, particularly in emerging markets such as Africa, Asia and Latin America.
• These regions, home to 85 per cent of the world's population, face major challenges such as limited infrastructure and a large, unbanked population.
• AI-based payment solutions not only improve the accessibility of payments, but also enhance security through advanced fraud detection.
• For example, in Nigeria, fraud increased by 112% between 2019 and 2023, while in India it jumped by 101% over the first five months of 2024.
• Through predictive analysis, businesses can reduce these risks and thereby build consumer confidence.
• Innovations such as those of iWallet, which introduces voice AI into payments, also enable the modernization of traditional systems.
• This type of technology, in line with PCI standards, ensures enhanced security and a simplified user experience, thereby promoting greater adoption of digital payments.

ISSUES

• Rethinking financial inclusion With more than one billion unbanked people in these regions, it is crucial to offer solutions tailored to local realities, such as mobile wallets and local currency payments.
• Strengthening safety and compliance : Companies have to face complex regulations and increased fraud. The d的IA systems, such as those offered by iWallet, help secure transactions while simplifying compliance.
• A market with real potential: Despite the challenges of infrastructure and digital access, the projections show immense potential. The AI market in Africa is expected to reach $18 billion by 2030, while Asia and Latin America will reach $215 billion and $19 billion respectively.

PERSPECTIVE

• Innovations in AI-based payment solutions are part of a global dynamic of digital transformation. From 2013 to 2023, emerging markets contributed 66% of global GDP growth, highlighting their central role in the global economy.
• The generalisation of digital payments in these regions is not limited to mere technological modernisation. It embodies a comprehensive strategy to reduce economic inequalities and integrate marginalized populations into the formal economy. Initiatives such as iWallet also demonstrate that the AI can simplify complex processes, such as billing or cheque management, while reducing operational costs.
• AI-based payments represent a unique opportunity to create an inclusive and resilient global economy. As these technologies democratize, they pave the way for equitable and sustainable participation, linking consumers and businesses in a globalized digital ecosystem.

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