- The artificial intelligence that the payments solution provider has added to its platform reduces fraud and speeds up receivable matching
- Interest in AI has increased over the years as it has the capability to streamline payments processes while abiding by complex regulations
- The company notes that suspicious payments are immediately escalated by the system so compliance experts can review them
Payments solutions provider Flywire has just announced the addition of artificial intelligence into its platform. The company says that the platform now has learning capabilities to speed up receivable matching for international payments. According to Flywire: “the enhancements improve the payment-to-settlement time”. Flywire’s press release also added that the newly integrated feature will help prevent fraud as well as reduce costs for those who send money abroad and their recipients.
Flywire’s new capabilities also automate and streamline cross-border payment matching, a challenge that other brands have to deal with manually. In the firm’s press release, Flywire notes that: “typical legacy payment platforms employ rigid, rules-based systems to perform ‘best effort’ reconciliation of invoices with monies received for businesses and institutions collecting payments”. The firm adds that these platforms are limited in terms of supporting “ever-evolving business requirements, multiple currencies, and myriad payment methods involved in collecting cross-border transactions”.
Interest in artificial intelligence has increased in the financial services sector over the years. This increased interest is supported by research, experts say. According to research advisory company Autonomous NEXT, financial firms can eliminate costs if they use this type of technology. Analysts at Autonomous NEXT say that artificially intelligent oversight, KYC, and risk management systems are valuable for financial institutions since they have to follow complex regulations while ensuring that transfers are done in real-time. The new technology also optimises FX conversion.
With this new machine learning capability, Flywire is now more efficient than before. The platform can “streamline the identification and reconciliation of complex, cross-border payments in real-time. Its platform is now able to automate the matching of 90% or more of cross-border transactions and gain additional improvements as the models learn”, the company says.
Experts say that this is a milestone for fintechs because Flywire’s algorithms do not need a lot of supervision to learn new payment methods or support them. The AI can also confirm payment sources and determine if payments are anomalous, the company says. Flywire adds that suspicious payments are immediately escalated to the firm’s operations and compliance teams for review.
“Accepting payments across borders is a highly complex process that increases the cost of collecting monies, opens up FX and fraud risks, and requires enormous operational investment”, said Jason Moens, the Vice President of Product at Flywire. “As more and more businesses and institutions leverage our platform to address these challenges, we continue to look for new ways to enhance its capabilities. The addition of advanced machine learning further streamlines our clients’ payment and receivable operations and removes more of the potential risks that can negatively impact fundamental parts of their business. This allows them to offer customized payment solutions to more of their customers -- wherever they are in the world.”
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