At the Payments Leaders’ Summit UK 2025, held at the Intercontinental Park Lane in London, Payments Consulting Network Associate, Ross McIntyre, had the privilege of moderating a round table on artificial intelligence (AI) and automation in payments, a discussion that illuminated their transformative potential. Convening professionals from retail, energy, gambling, corporate travel, and financial services, the session revealed AI’s role in revolutionising fraud and fraud prevention, personalisation, operational efficiency, and emerging applications like payment orchestration. Complementing these insights, summit discussions on payment orchestration highlighted its strategic importance in streamlining complex payment ecosystems.

This article, written by Ross McIntyre, covers key takeaways, critically reflects on their implications, and draws global parallels, particularly with Australia and the Asia-Pacific, to offer actionable guidance for payments professionals.

AI and Automation: Transforming Payments

Moderating the AI round table, I witnessed an industry at a crossroads, balancing AI’s promise with ethical and practical challenges. Participants ranged from those exploring AI’s potential to those implementing targeted solutions, reflecting a spectrum of adoption.

• Fraud Prevention and AML: AI’s maturity in fraud detection was a focal point. The major card schemes already provide a high level of fraud protection and there are many well-developed AI-based monitoring tools in the market. Existing tools leverage neural networks to analyse transactional, behavioural, and metadata in real-time, reducing false positives and detecting fraud much faster than rule-based systems. Participants sought external anti-money laundering (AML) solutions for onboarding, noting AI’s ability to counter sophisticated scams (e.g., flawless phishing emails, synthetic voice scams) while emphasising human oversight for high-risk cases, such as seniors’ payments. The rise of adversarial AI—fraudsters using machine learning to evade systems—underscored the need for continuous model retraining.
• Personalisation and Customer Experience: AI-driven chatbots and omnichannel integrations, like Walmart’s shop-to-text AI reducing cart abandonment and enhancing consumer interactions. Participants envisioned AI automating tasks like parking payments or selecting optimal payment instruments based on rewards, though fragmented experiences (e.g., copy-pasting chatbot outputs) persist. Personalisation in the travel industry for frequent travellers was also noted. Transparency in data usage was critical to maintain trust, with increasing indications that consumers find intrusive personalisation off-putting.
• Operational Efficiency: AI acts as a “co-pilot,” automating “grunt work” like bookkeeping or subscription retries. One delegate, from a U.S. financial firm, said they use AI to free bookkeepers for decision-making. However, another from the high stakes gambling sector expressed scepticism about AI’s reliability for high-volume transactions (e.g., 1,000 per second). Over-reliance on AI leading to skill loss was also a concern. Hybrid models combining AI with robotic process automation (RPA) and human oversight were proposed as more reliable in such contexts.
• Data Security and Ethics: Quality data collection under GDPR/CCPA compliance was a priority. Participants distinguished large language models (LLMs), using unverified data, from small language models (SLMs), leveraging controlled datasets for security. Ethical concerns, particularly AI bias in fraud detection, aligned with the OECD’s AI Principles, emphasising transparency and fairness to avoid disproportionate flagging of marginalised groups.
• Future Applications: AI’s role in fast payments (e.g., Hema’s mobile-only model), chargeback management, and local device processing to address privacy concerns were discussed. Payment orchestration, discussed as an AI-enhanced process, emerged as a key application, optimising transaction routing for cost and efficiency.

AI in FinTech Innovation: Industry Perspectives

A standout presentation at the summit on AI in FinTech Innovation underscored the transformative role of AI in the payments industry. One organisation, processing $1.4 trillion annually – equivalent to 1.3% of global GDP, credited its 38% year-on-year growth to AI-driven solutions such as optimised checkout suites that personalise payment methods and deliver an average 8% revenue uplift. Another speaker from a UK-based provider shared how AI has significantly improved fraud prevention, reporting a 42% drop in scam calls and a 90% reduction in successful fraud attempts using conversational AI tools.

Throughout the session, collaboration was emphasised as vital to leveraging AI effectively, with calls for robust data infrastructure and strong partnerships to support compliance and enhance customer experience. One speaker described AI as a “must-have” in identity verification and regulatory alignment, highlighting its critical role in tackling sophisticated fraud. These insights align with trends observed in Asia-Pacific markets, where AI-powered mobile payment personalisation is thriving. The session reinforced the importance of hybrid AI-human strategies to maintain trust, adaptability, and ethical standards, complementing broader summit discussions around operational efficiency and responsible AI use.

Reflection: The round table and “AI in FinTech Innovation” presentation highlighted AI’s dual nature: a powerful tool for efficiency and personalisation, yet fraught with ethical and trust challenges. One organisations’s metrics and fraud prevention tools underscore AI’s scalability, while the emphasis on collaboration and human oversight echoes the round table’s call for hybrid models. Adversarial AI’s rise demands vigilance, while personalisation’s success hinges on seamless integration and transparency. SLMs and explainable AI (XAI) offer solutions for security and fairness, but few financial firms trust AI for mission-critical tasks, underscoring the need for balanced approaches that leverage partnerships and robust data infrastructure.

Payment Orchestration Leveraging AI

Payment orchestration, a summit highlight, complements AI by integrating multiple payment service providers (PSPs), acquirers, and methods into a unified platform. Unlike traditional gateways, orchestration platforms act as independent hubs, dynamically routing transactions based on cost, authorisation rates, and regional preferences. AI can enhance this process by analysing transaction data to predict declines and optimise routing.

• Strategic Benefits: Orchestration delivers cost savings, with merchants reporting 40% reductions in processing costs in Asia-Pacific regions. It enhances resilience through redundancy, rerouting transactions during outages, critical for high-volume businesses. Omnichannel integration, as seen in travel sector telecom payments, bridges online and offline experiences.
• Challenges: Geographic complexity and regulatory compliance (e.g., PSD2, Brazil’s mandates) pose hurdles, particularly in high-risk verticals like gambling, managing up to 95 payment methods. Delegates also raised concerns about kickbacks and conflicts of interest in orchestrators with processing arms. The build-versus-buy debate was prominent: in-house platforms demand resources (e.g., 35 engineers for one merchant), while off-the-shelf solutions risk customisation limits and provider insolvency. Open-source orchestration offers flexibility, though forking risks remain.
• AI’s Role: AI-driven orchestration can optimise routing for cost and revenue, as seen in Asia-Pacific’s integration of mobile payments like WeChat Pay and UPI. Automation, low-code, and ‘vibe’ code (AI coding) solutions empower smaller merchants, potentially leveling the playing field.

Reflection: Orchestration’s maturity in Asia-Pacific, with proven reductions in payment processing costs and higher authorisation rates, offers lessons for the UK’s card-dominated market. AI’s integration amplifies orchestration’s value, but robust data infrastructure is a barrier for smaller firms. Open-source solutions balance control and cost, but merchants must mitigate insolvency risks through contingency planning.

Global Perspectives: Australia and Asia-Pacific

The UK’s AI and orchestration advancements draw parallels with Australia and the Asia-Pacific. Australia’s New Payments Platform (NPP) integrates real-time payments with card schemes and Buy Now, Pay Later (BNPL), leveraging orchestration to reduce processing times. In Asia-Pacific, China’s WeChat Pay and India’s UPI rely on orchestration to integrate diverse methods, with AI optimising routing. The UK’s focus on ethical AI and SLMs could inform Australia’s digital innovation, while Asia-Pacific’s mobile payment expertise inspires AI-driven omnichannel strategies.

Reflection: The UK’s AI leadership contrasts with Asia-Pacific’s orchestration maturity, highlighting cross-regional learning potential. Australia’s developer community and government support for open-source solutions could guide UK merchants, while the UK’s ethical AI frameworks address Asia-Pacific’s bias concerns. Standardised APIs are likely to be critical for interoperability, ensuring AI and orchestration deliver consumer-centric outcomes.

Actionable Takeaways

The AI round table and orchestration discussions yielded practical steps for leveraging technology in payments:

• Strengthen AI-Driven Fraud Detection: Invest in vendor solutions with continuous retraining to counter adversarial AI, maintaining human oversight for high-risk transactions.
• Optimise Personalisation with AI: Deploy AI-driven chatbots and omnichannel tools, ensuring seamless integrations and transparent data policies to build trust.
• Adopt Ethical AI Practices: Use SLMs and XAI for secure, bias-free systems, conducting regular GDPR/CCPA and bias audits to safeguard consumer trust.
• Enhance Orchestration with AI: Pilot AI-driven orchestration platforms to optimise routing, reduce costs, and ensure resilience through multiple PSPs.
• Explore Open-Source Orchestration: For larger merchants, consider leveraging open-source tools for flexibility, balancing control with contingency plans to mitigate provider risks.
• Foster Collaborative AI Strategies: Partner with FinTech leaders to leverage AI for fraud prevention, compliance, and customer experience, drawing on shared data and innovative tools to enhance trust and efficiency.
• Drive Innovation: Advocate standardised APIs and pilot local device processing to address privacy, drawing on Asia-Pacific’s mobile payment models.

Conclusion

The Payments Leaders’ Summit UK 2025, through the AI round table, “AI in FinTech Innovation” presentation, and orchestration discussions, underscored AI, and automation as cornerstones of payments innovation. From fraud prevention to personalisation and operational efficiency, AI’s transformative potential is tempered by ethical and trust challenges, addressed through SLMs, XAI, and hybrid models. Payment orchestration, enhanced by AI, streamlines complex ecosystems, delivering cost savings and resilience. Global insights from Australia and Asia-Pacific highlight the power of cross-regional learning, with standardised APIs and open-source solutions paving the way for a consumer-centric future. By embracing AI responsibly and integrating orchestration strategically, payments leaders can drive efficiency and innovation.

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Author: Ross McIntyre, Associate, Australia, Payments Consulting Network

Ross has over 15 years of experience in data science, financial analysis, and the preparation of business cases, proposals, and strategies. His experience includes business case lead on several end-to-end supply chain reviews, commercial lead on high-level pricing strategies, profit worker design for retail, business case support for large corporate deals and advising retailers and financial institutions on emerging technologies.

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Payments Consulting Network is a Knowledge-Based Partner for Payments Leaders’ Summits 2025.

Ross McIntyre moderated a round table on artificial intelligence (AI) and automation in payments at the Payments Leaders’ Summit UK in 2025.

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