Artificial intelligence, biometrics & digital identity: Innovation drives new frontiers of commerce in Italy

At Salone dei Pagamenti, Visa discusses key industry issues and solutions for the future of payments in Italy.

Artificial intelligence, biometric authentication and digital identity. Italians are looking with increasing trust to innovative solutions that help ensure fast, secure and personalised payment experiences.

In fact, 39% of respondents in a recent Visa survey¹ said they were open to innovations that simplify the payment experience. Furthermore, 41% believe that AI can improve the security of banking transactions and online payments, while 23% agree that the use of biometric recognition and digital screening tools are now essential to making the digital payment experience quick and easy.

While the number of Italians relying on digital payments is growing, there is further room to increase their adoption in the country. Fear of fraud is still one of the barriers to wider use for 40 per cent of surveyed consumers. It therefore becomes crucial to bridge the gap between physical and digital payment experiences, not only in terms of usability but also of security, especially if we consider the new use cases that are emerging, such as account-to-account payments, which are increasingly targeted by cybercriminals², and the emergence of new industry players.

"Italians are increasingly demanding quick and easy shopping experiences, both in-store and online. Experiences that, thanks to its global coverage, Visa is committed to offering through continuous investments in infrastructure and value-added services, as part of a strategy based on enabling all money movements in a fast, intuitive and secure way," commented Stefano M. Stoppani, Country Manager Visa Italy.

"Fraud is shifting from transaction to identity, and identity is the foundation of trust when it comes to paying and being paid. It is therefore imperative that we continue to invest in digital innovations that can accompany consumers towards a personalised, simpler and more secure future. Some of them can be seen at Salone dei Pagamenti, which is for us a moment of dialogue with the entire payments ecosystem,” Stoppani continued. “In 1993, we pioneered the implementation of AI-based technology for payments risk management, and in the last year alone, Visa's artificial intelligence and predictive machine learning capabilities have helped prevent approximately $40 billion in fraud-related losses globally.”

Visa's innovations on show at Salone dei Pagamenti 2024
Visa will be present at the ninth edition of Salone dei Pagamenti to discuss some key issues for the industry and present new solutions for the future of payments in Italy. The Visa booth showcases some of the most innovative solutions in the payments landscape.

• Visa Spend Clarity: the new evolved reporting service, part of Visa Business Solutions, allows businesses to simplify their internal processes, particularly those of reconciliation of payments, receipts and statements at the end of the month, bringing efficiency and ensuring that the business becomes more competitive. Not only in terms of cost reduction, but also in terms of resources that can concentrate on higher value-added activities³.

• Visa Flexible Credential: a study by Visa found that more than half of card users want the ability to access multiple accounts through a single payment credential⁴. In this scenario, Visa Flexible Credential allows a single card to switch between payment types, leaving the consumer the choice. With this solution, users will be able to easily set parameters, decide whether to use debit, credit or even pay using reward points⁵.

• Visa Protect for A2A Payments: working with Real-Time Payments (RTP) networks around the world, Visa brings decades of experience in applying AI to help mitigate account-to-account payment fraud on RTP networks. This new technology helps intercept suspected fraud transactions in real time, stopping fraud before the money leaves the affected person's bank account. In a pilot project with Pay UK, we were able to identify 54 per cent of fraudulent transactions that had already passed through the banks' sophisticated fraud detection systems, thanks to Visa's predictive AI technology.

• Visa Payment Passkey Service: based on the latest Fast Identity Online (FIDO) standards, Visa Payment Passkey Service confirms a consumer's identity and authorises online payments with a quick scan of biometric data, such as face or fingerprint.

• Subscription Manager: Visa's new service for financial institutions offers cardholders a simple and convenient way to keep track of their subscriptions, right ‘in the palm of their hand’. Subscription Manager brings together details of recurring payments in one place, allowing users to control where data is stored, view which recurring payments are charged and manage them⁶.

• my Visa: my Visa Premium Platform is a digital platform where Visa Premium cardholders can access all benefits, promotions, offers and services related to their card provided by Visa and/or the issuer. The solution supports issuers in their efforts to differentiate their value proposition, protecting and developing new revenues through ongoing promotions and dedicated partnerships.