Artificial Intelligence Will Change Payment Landscape In Indonesia, This Is What Visa Did

Photo: Doc. Visa

JAKARTA - The payment landscape in Indonesia will undergo a significant transformation through the use of Generative Artificial Intelligence (AI), according to Visa, world leaders in digital payments. As the largest digital payment market in Southeast Asia, Indonesia is in an excellent position to utilize AI to improve payment experience for consumers and businesses. The Indonesian economy is expected to grow faster than the regional average and encourage significant digital economic growth.

Genrative AI is currently revolutionizing various industries, including financial services, health services, and education. By improving service and productivity, this technology changes business growth strategies. This technology is also set to support various consumer experiences, such as in the field of embedded finance.

Embedded finance, which involves integration of payment options into non-financial platforms, has become part of the daily lives of Indonesian consumers. Either ordering online transportation services or ordering food to be brought home through the application, consumers benefit from smoother customer travel (customer journey). While businesses can take advantage of embedded finance technology to develop an integrated solution offer that simplifies the payment process for traders.

"At Visa, we are aware of the extraordinary potential of AI and embedded finance. We are working with our partners to facilitate digital payments that are increasingly smooth and secure in Indonesia. As a trusted brand in collaboration with players in the payment ecosystem, Visa is in the right position to participate in shaping this space and innovating for the future." said Riko Abdurrahman, President Director of Visa Indonesia, in a written statement, Thursday, February 22.

Visa has been at the forefront of AI use for fraud risk protection (fraud) and payments for more than 30 years. Visa is the first network to use AI-based technology for risk management and fraud, by spearheading the use of AI models in payment security.

Currently, the Visa technology platform is one of the best examples of real benefits of AI in helping to solve the various challenges and problems financial institutions have faced for a long time. Visa Consulting & Analytics recently launched a new AI Advisory Practice, which was built with a focus on empowering clients by sharing insights and recommendations that can be followed up to take advantage of artificial intelligence potentials, including the AI generative.

"The AI revolution has arrived, and the payment sector is at the forefront of this transformation. With the new AI Advisory practice, Visa helps clients develop and redefine their way of serving customers through acquisition and engagement," said Manideep Gupta, VP, Visa Consulting & Analytics, Asia Pacific.

In the financial services industry, banks and financial institutions can navigate competitive market landscapes by using AI to gain more subscribers, increasing customer engagement, and optimizing operational excellence. AI can facilitate faster credit assessments for consumers and businesses, which are critical in enabling simpler and more reliable underwriting and billing processes.

This technology can also accelerate the detection and protection of fraud, improve the dispute management process, and automate financial consulting services. This leads to a better user experience and allows the provision of intelligent financial services, such as recommendations and personalized offerings.

The Security Roadmap Visa for Indonesia, which has been updated and introduced in August 2023, provides a framework to secure a payment ecosystem in Indonesia in collaboration with various partners. Visa uses AI and data-based solutions to protect online and physical transactions from potential threats.

In October 2023, Visa announced a $100 million initiative to invest in generating artificial intelligence companies. In addition, Visa Provisioning Intelligence (VPI) from Visa, which was launched in December 2023, is an AI-based product designed to fight fraud tokens from its sources, to help financial institutions prevent fraud.

Tokenization is a qualified AI technology in fighting fraud by changing the number of consumer accounts to a unique code so that it can be more robust in protecting consumer account information from criminals, which in turn enables banks and other financial institutions to offer smooth and secure transactions for customers.