2024 in Payments: AI, Biometric Security, and the Road Ahead

The payments industry has seen another year of remarkable advancements and challenges. One year ago, we hosted a webinar discussing the trends expected to shape the industry in 2024. As we reflect, it’s time to ask: How did these developments unfold, and where are we headed next??

AI in Payments: Revolutionising Fraud Prevention?

Artificial intelligence has solidified its role in payments, particularly in fraud prevention. AI-powered tools are now analysing vast datasets in real time, detecting suspicious activities, and flagging risks before they escalate.?

But here’s the challenge: fraudsters are also leveraging AI to exploit vulnerabilities. Are businesses doing enough to stay ahead of this technological arms race? How can your organisation strike the right balance between innovation and proactive defense??

Biometric Adoption: Convenience Meets Privacy Concerns?

Biometric payment methods—such as fingerprint, facial recognition, and voice authentication—gained significant traction in 2024. They offer seamless, secure transaction experiences that consumers love.?

Yet, convenience comes with its own challenges. How safe is biometric data from breaches? Are businesses equipped to address growing consumer concerns about how their personal information is stored and used? Could a stronger regulatory framework be the answer to building long-term trust??

Tokenisation and Encryption: Strengthening Payment Security?

Tokenisation and encryption technologies continued to raise the bar for payment security this year. By replacing sensitive data with unique tokens, businesses minimised the risks of breaches and unauthorised access, bolstering consumer trust.?

But as these technologies become the standard, what’s next? Could there be new ways to optimise security while maintaining seamless user experiences? Are businesses ready to adapt to the next wave of innovation in payment protection??

What Lies Ahead in 2025?

Looking ahead, 2025 promises to accelerate many of these trends.?

• The initiation of C2P (Consumer-to-Professional), a sticker-based contactless payment product that transforms any mobile phone into a credit card or wallet for face-to-face and online purchases, and SCOF (Secure Card on File), which allows merchants, PSPs, and commerce platforms to tokenize Primary Account Numbers (PANs). By replacing PANs with unique tokens (subject to issuer participation), SCOF enables secure e-commerce and in-app transactions, providing both enhanced security and seamless user experiences.?
• ?AI, continuing to dominate discussions, driving advancements in fraud prevention, personalisation, and operational efficiency.?
• The adoption of VAMP (Visa Fraud Prevention Measurement), which will become critical for measuring fraud prevention efforts and refining strategies in payment processing.?
• The implementation of PSD3 (Payment Services Directive 3), initiated by the European Commission, to strengthen payment security, enhance transparency, and improve fraud detection across the EU.?

At Fibonatix, we’re committed to helping businesses navigate this fast-changing landscape. If you missed our 2024 webinar, stay tuned—there’s more to come as we continue to support businesses in staying ahead of the curve.?