The global digital payments ecosystem is rapidly evolving, with various stakeholders working towards creating secure, compliant, real-time, ubiquitous, and cost-effective payment rails. Regardless of size or sector, all businesses that handle transactions and transfers rely on payment rails.

Payment rails are platforms or network infrastructures that enable digital money transfers between payers and payees, independent of country, currency, payment method, channel, or persona. Each payment rail operates differently based on factors such as payment type, speed, technology, settlement network, or geographical location.

IBM Cloud for Payments offers a secure foundation for global payment growth, facilitating new revenue streams, maintaining positive customer experiences, and ensuring secure transactions while adhering to the highest compliance standards. The platform provides end-to-end as-a-service solutions for check payments, cross-border payments, and real-time payments.

By digitizing the payment infrastructure, businesses can enhance payments management, cash forecasting, and other payment operations. Digitization allows for faster and more consistent access to data, improving overall cash forecasting, liquidity decision-making, and enabling innovation and growth.

Using AI and Machine Learning to Combat Payments Fraud

Cyber threats, fraud, and payment processing are constantly evolving, and businesses expect their payment systems to keep up. Integration with IBM Safer Payments, a real-time payment fraud monitoring solution, empowers clients to improve fraud detection, manage false positives, and stay ahead of new threats without compromising transaction speed.

IBM Safer Payments on the IBM Cloud platform provides statistical, modeling, and model-support tools that help financial crime professionals build models capable of rapidly recognizing and stopping payment fraud attacks across various cashless payment systems. Additionally, clients can leverage IBM Watson Studio for model development, using considerably less data and achieving faster model update cycles.

Building Resilient Payment Infrastructures

The cost of cybercrime is escalating, with a 10% increase in the average total cost of a breach. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) network serves as a secure and standardized platform for financial institutions worldwide to exchange information about financial transactions. To enable frictionless cross-border payments, it is crucial to establish a collaborative effort among banks and ensure resilient and compliant payment infrastructures, as cyberattacks can disrupt the international market and have ripple effects on the global economy.

IBM offers a cyber-resilient SWIFT environment on the IBM Cloud for Financial Services, allowing users to continue processing messages even in the event of a cyberattack. This solution leverages IBM’s built-in security and compliance framework, providing a secure and reliable environment for financial institutions.

Conclusion

In the realm of payments, time is of the essence. Businesses cannot afford extra time, lack of predictability, or loss of information when making or receiving payments. To reduce friction in payments, financial institutions must rethink old approaches and modernize their payment systems by establishing interoperability, adhering to compliance legislation, and embracing new payment rails. IBM Cloud for Payments offers secure and resilient solutions, enabling financial institutions to navigate the evolving payments landscape with confidence.

Frequently Asked Questions (FAQ)

What is IBM Cloud for Payments?

IBM Cloud for Payments is a platform that provides end-to-end, as-a-service solutions for check payments, cross-border payments, and real-time payments. It offers a secure foundation for global payment growth, ensuring secure transactions and maintaining compliance with the highest standards.

How does IBM Cloud for Payments combat payments fraud?

IBM Cloud for Payments integrates with IBM Safer Payments, a real-time payment fraud monitoring solution. This integration allows businesses to improve fraud detection, manage false positives, and stay on top of new threats without impacting the speed of transactions. IBM Safer Payments provides statistical, modeling, and model-support tools to help financial crime professionals recognize and stop payment fraud attacks across different cashless payment systems.

What is the significance of building a resilient payment infrastructure?

Building a resilient payment infrastructure is crucial to protect against cyber threats and ensure the continuity of payment operations. By leveraging a cyber-resilient environment, such as the one offered by IBM on the IBM Cloud for Financial Services, businesses can continue processing payment messages even during cyberattacks. This resilience is essential for maintaining trust in the financial system and avoiding disruptions to the international market.

What benefits does digitizing the payment infrastructure provide?

Digitizing the payment infrastructure enables businesses to improve payments management, cash forecasting, and overall payment operations. It allows for faster and more consistent access to data, enhancing cash forecasting and liquidity decision-making. By digitizing legacy infrastructure, businesses can unlock new revenue streams and drive innovation and growth.

Why is interoperability important in modern payment systems?

Interoperability is crucial in modern payment systems because it enables seamless communication and data exchange between different payment rails. Establishing interoperability ensures efficient and frictionless cross-border payments and allows businesses to adapt to evolving regulatory and compliance requirements. It promotes collaboration among financial institutions and fosters innovation in the payments ecosystem.