The need for building customer trust through effective application of new age technology in digital payments, in an increasingly volatile world
CXOToday has engaged in an exclusive interview with V. Chandramouliswaran, VP – Risk Management, PayPal India
- India’s digital payments landscape is expected to grow exponentially over the next few years. What are some of the technologies that will be crucial in enabling this growth?
In the coming years, AI will aid the fintech sector in providing a tailor-made experience to individual users based on the mining-led intelligence garnered from transactional data. Processes like customer service and voice-based payments are set to be launched as fully automated offerings with the emergence of generative AI.
At PayPal, we leverage AI and data analytics to monitor the customer journey and predict potential risks. Our systems are designed to learn from decisions we have made in the past, analyze and identify what constitutes fraud, and evolve to identify complex hidden risks. Such data infrastructure and decision systems backed by AI will play a crucial role in increasing customer trust and thereby, enabling the growth of digital payments.
- As businesses strive to provide customers with a personalized experience, what is the role of technologies such as AI and data analytics to improve the customer’s payment journey?
As the demand for personalized customer experiences skyrockets, technologies such as AI and data analytics are becoming increasingly important in improving the customer’s payment journey. AI can assist in predicting customer behavior and streamlining payments processes. Whereas data analytics can provide valuable insights into customer behavior and preferences to help businesses deliver delightful and personalized customer experiences that address their concerns. For example, using advanced technologies, PayPal has improved customers’ payment experience by reducing checkout time, accounting for preferred payment modes and currencies, allowing customers to save payment methods for faster checkout, real-time account updating, and access to new pricing options.
Furthermore, AI and data analytics can also enhance fraud detection and security measures, ensuring that customers’ sensitive information remains protected during the payment process. It is crucial for businesses to leverage these technologies to remain competitive in the ever-evolving landscape and continue to innovate on new ways to leverage its power to make better decisions, run efficient operations, and in turn, serve the customers better.
- Amid growing concerns over data privacy, how can businesses ensure customized experiences for their consumers without compromising on security?
We deploy two main approaches that help us make better risk decisions. The first is a model-driven approach in which multiple models from logistic regressions to deep learning models, are carried out before making a decision on a transaction, all within milliseconds. The second is a story-based analytics approach wherein our analysts identify patterns in the decisions we make and learn from them. This methodology, along with multiple decades of deep risk management expertise, has enabled our teams to produce world-class solutions that have had a significant impact on both customers and merchants, providing them with tailored experiences without compromising on security.
- As the threat landscape continues to evolve, what should enterprises keep in mind when it comes to building an effective risk management strategy?
Enterprises should prioritize risk management as a fundamental component of their business strategy when it comes to digital payments. With the sophistication of attacks on consumer data pools increasing, firms must be proactive in detecting possible risks and implementing effective mitigation measures. This includes performing regular security audits, adhering to industry standards and best practices, and investing in cutting-edge technologies and capabilities to combat these attacks. Businesses must also have a solid incident response plan in place to mitigate the effect of any frauds. Businesses may protect their digital payments infrastructure and maintain client trust by taking a proactive and thorough approach to risk management.
- How is PayPal leveraging new age tech to help MSMEs flourish in cross-border trade?
We do not limit our identity as a brand to being in the payments business, but rather, in the business of trust. As we pursue our aim to democratize access to financial services, our complete payments solution is constantly evolving to enable MSMEs in their cross-border expansion.
