Mobile commerce refers to any commercial transaction done with the help of mobile devices like smartphones or tablets. Many entrepreneurs have adopted it to reach a larger audience and ever-expanding customer base of mobile users. Over the past few years, m-commerce has become a major factor motivating the global economy, and numerous companies are finding innovative ways to capitalize on this trend. Two of those trends are the adoption of AI and biometric solutions.
Enhancing security with biometric integration
While some of the underlying technology for biometric payment authentication is complicated, much of it is transparent to the end-user and the merchant. The goal is to provide secure but fast payment. Integrating biometric sensors in payment processing achieves this balance. In a retail setting, fingerprint scanners are sometimes added to a typical payment terminal. The terminal is linked via the retail POS system to the cardholder’s issuing bank. It holds the customer’s biometric data. The fingerprint data is confirmed at the same time as the credit card transactions, so it does not add additional time to the transaction. This type of biometric authentication is reserved for higher-risk transactions and is not required for typical daily transactions. However, with the rise of smartphones and digital wallets, biometric authentication of m-commerce payment is gaining more popularity than before. This has significantly contributed to the growth of the m-commerce payment market.
BioCatch’s mule detection solution
In 2022, BioCatch added more than 40 new customers to its internationally renowned roster, including foundational accounts in India and the Caribbean – expanding its global footprint to 22 countries and protecting more than a quarter billion people from fraud. The new customers, along with the existing ones, adopted the company's solutions through web and mobile channels. More than 40% of consumers integrated their mobile solutions by the end of 2022 . It secured their payments at home and on the go. The company witnessed strong revenue growth due to this massive inclusion.
Amplifying speed and reducing risks with AI
Artificial intelligence applies upgraded algorithms for the immediate detection of fraud and malignant activities in mobile transactions. It analyzes regular patterns and finds abnormalities in transaction data and user behavior. In addition, it prevents unsanctioned exchanges, protecting consumers and retailers from high risks of losing money. Moreover, AI learns and adapts to new threats, continually improving to protect sensitive information. It minimizes the payment authorization and processing time using algorithms that maximize transaction pathways. This speed is especially important in high-demand situations, such as flash sales or limited-time offers. AI also reduces downtime through system overload and failure predictions. It instantly suggests measures and assures mobile payment systems remain operational, even during peak traffic times.
Digital wallets utilize AI through transaction categorization and expense tracking in m-commerce to improve the user experience. It provides analysis of consumers’ spending habits that assists users in controlling their financial activities more effectively. Furthermore, it facilitates seamless integration between various payment platforms and digital wallets. This compatibility allows consumers to link multiple payment methods and choose their preferred option at checkout without any hassle.
Visa announced a $100 million generative AI venture fund in 2023 to invest in GenAI startups. These included payments, fintech, and commerce. The initiative was led by Visa Ventures, a corporate investment arm of the global payment giant that has invested and cooperated with related companies since 2007.
Endnote
The integration of AI and biometric solutions in mobile commerce has transformed security and user experience. These technologies increase the speed and enhance the safety of transactions. They also provide valuable insights into consumer behavior. In other words, these developments have efficiently secured the landscape of mobile commerce. This has assisted entrepreneurs to adapt to the market dynamics and offer consumers a seamless and highly secure shopping experience.
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