Payments behemoths continued investing in technology to control costs and streamline operations in the second quarter. 

Visa and Mastercard are deploying AI for the following: 

• To fight fraud; 

• Enhance data and analytics; and 

• Boost accounting and sales operations. 

  

Mastercard is using AI for operations including data analytics, fraud and cybersecurity to improve offerings and efficiency, Mastercard Chief Executive Michael Miebach, said during the company’s Q2 earnings call on July 31. 

Visa, meanwhile, is “applying generative AI to enhance the entire payment ecosystem,” which includes risk management and fraud-fighting capabilities, Chief Executive Ryan McInerney said during the company’s Q2 earnings call on July 23. 

Visa is working on its Compelling Evidence 4.0 solution, which aims to reduce the number of chargebacks and losses associated with fraudulent chargebacks. Mike Lemberger, senior vice president and chief risk officer at Visa, recently told Bank Automation News: “We heard the industry on this one.”  

READ MORE: Visa takes on not-so-friendly fraud 

Visa is also deploying AI for productivity gains in accounting and sales operations, McInerney said. 

“We are very optimistic about the positive impact that generative AI can have, not just on our own productivity but on our ability to help drive increased sales and lower fraud across the ecosystem,” McInerney said. 

New solutions 

Mastercard, meanwhile, is developing biometric payment solutions to enhance and simplify the payments process, CEO Miebach said during earnings call. 

“We are scaling our biometric checkout program to new regions,” Miebach said. “In Europe, we’re partnering with Polish Fintech PayEye to allow shoppers to pay with a simple glance, and in Latin America we are working with Ingenico” to allow customers wave their payment device near the portal. 

And the new Visa Flexible Credential solution allows customers to use one card to toggle between payment methods like debit, credit card or buy now, pay later payments, according to a May 15 Visa release. 

The San Francisco-based company is also using AI to track and stop fraud for account-to-account payments with the Real-Time Payments network by using more than 500 data elements in real time, the release stated. 

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