Electronic Payments: Recommendations and Solutions

Payment platforms have grown in tandem with digital commerce, and they face various challenges to ensure smooth operation, security, and a good experience for its users. From Arbusta, and within our four services, we have several options that cover the needs of these platforms. These are our recommendations.

The events over the past year have increased the frequency of online shopping in all countries, especially in the United States, where the internet and ecommerce sectors have experienced 44% year-over-year growth. As a result, around 58% of Americans are now more inclined to utilize contactless payment methods than they were before the pandemic.

The automated clearinghouse, a network that allows financial institutions to conduct mass electronic transfers, facilitates the electronic transfer of money from one account to another in the United States. While the network was designed to process regular payments, now it is being used to conduct one-time debit transfers, such as payments made over the phone or through the internet.

During 2020, virtual wallets and payment by cards and electronic money assumed a key role in facilitating payments, and even distributing monetary aid by direct deposit to those who had received tax refunds from the IRS in the same manner. In addition, it is expected that in 2022 65.3% of Americans will use digital banking and more than one billion people will be using e-wallets to carry out their financial transactions.

In this sense, the data indicates that applications and websites that facilitate payments and transactions are gaining relevance, in addition to their primary use within ecommerce sites. Digital commerce is an option that companies are increasingly choosing to adopt, and with it comes the need for heightened security of payment platforms. 

Due to this accelerated growth, payment platforms face different challenges. According to the Trulioo, one of the main challenges payment platforms face concerns fraud and cybercrime prevention. The second is gaining and maintaining consumer acceptance of contactless technologies (QR, and mobile payment) and other instantaneous methods of payments, which are increasingly playing a leading role. The third is new risks, new cross-border opportunities, and new marketplace competition. Lastly, the fourth challenge includes keeping up with a relentless pace of change that took some companies by surprise when coupled with the onslaught of the pandemic.

In order to understand what key points to keep in mind regarding the advancement of digital payment platforms, Karen Reales, a Business Unit Manager in Digital Interaction for Arbusta, explains that “The main challenge for electronic payment is the ability to prevent fraud by providing a secure and reliable platform, and to ensure that the platform is able to promptly attend to varying user interactions to deliver a market exceeding experience”. 

Electronic Payments

These are the recommendations that Arbusta offers to businesses that are facing these challenges: 

Initially, and to ensure that the platform is reliable, that it have a process for anti-fraud policies, that is, it should have an assessment of risks associated with financial crimes. Usually, fraud prevention and strengthening security in financial markets depend on different standards, including KYC (Know Your Customer) and AML (Anti Money Laundering). The regulation of these rules and anti-fraud policies similarly depends on each country. 

However, electronic payment platforms are obliged to evaluate their customers and must comply with the KYC standard, which implies enforcing the CDD (Customer Due Diligence) to digitally identify the user and verify their identity, and AML through the acquisition and verification of the identity of the client. In order to achieve this, artificial intelligence and computer vision platforms are being used. Arbusta’s machine learning training services work with supervised, unsupervised, and reinforced automated learning training to provide solutions for all business needs.

Additionally, it is vital to analyze the data that allows your business to detect improvements within different areas of your service that incorporates clients who want to use the payment platform. We provide this solution at Arbusta by way of our Data Tribes and the standardization of our reporting. In this manner, our data services teams, starting from our data management sub-service, work initially on the normalization of the database and then advance with enrichment and the respective classification of the data. All this, to generate reports (manually or automated) that ultimately help in the decision-making process. 

The solutions we provide for payment platforms include:

Electronic Payments

Machine learning training to achieve a reliable and secure platform through supervised, unsupervised, and reinforced machine learning training, coupled with AI platforms in KYC, CDD, and KYB (backend support for KYC and AML verifications include collection services, data validation and guarantee of policy compliance)

Digital interactions for the accompaniment of users 

  • Digital backend support for Low-and-High-Touch Onboarding
  • Automation of interactions through WhatsApp Bots and Mass email
  • Customer experience measurement via satisfaction surveys deployed based on interactions

Data management to observe and ensure proper operation of the platforms

  • Database normalization
  • Data enrichment and classification
  • Report generation and automation

Interested in starting a conversation with Arbusta to discuss how our teams can contribute to your project? Write to us at [email protected].