Enhancing Payment Ecosystems with AI/ML: Real-Time Analytics for Fraud Prevention and User Insights

Kushwah, Lokendra Singh (2025) Enhancing Payment Ecosystems with AI/ML: Real-Time Analytics for Fraud Prevention and User Insights. World Journal of Advanced Research and Reviews, 26 (1). pp. 2124-2132. ISSN 2581-9615

The integration of Artificial Intelligence (AI) and Machine Learning (ML) has revolutionized payment ecosystems by enhancing fraud prevention, optimizing transaction processing, and personalizing user experiences. AI-driven fraud detection systems leverage real-time analytics and anomaly detection to identify suspicious activities with up to 99.2% accuracy, reducing false positives by 60% while maintaining high transaction approval rates. Machine learning models, including ensemble classification techniques and deep neural networks, enable adaptive security mechanisms that respond to evolving fraud patterns. The implementation of microservices architecture, coupled with intelligent data management strategies, enables unprecedented scalability and performance optimization. Machine learning models, including anomaly detection algorithms and classification systems, work in concert to provide multi-layered security while reducing false positives and maintaining high transaction approval rates. Additionally, AI-powered personalization engines analyze behavioral data to deliver context-aware payment recommendations, improving customer satisfaction by 38% and increasing transaction completion rates by 41%. The implementation of microservices architectures and intelligent data management strategies ensures scalability, resilience, and compliance with global regulatory standards. These technological advancements, combined with sophisticated feature engineering and real-time decision-making capabilities, have established new standards in payment processing efficiency, security, and user experience. As AI continues to evolve, its role in financial security and seamless payment experiences will expand, setting new benchmarks in fraud mitigation, operational efficiency, and user-centric payment processing.