Dalbir Sahota, Director of Trusted Payments, LSEG Risk Intelligence
Dalbir Sahota, Director of Trusted Payments at LSEG Risk Intelligence, spoke at Money20/20 about the increasing sophistication of global payment fraud and the need for proactive solutions. He emphasized the rise of authorised push payment (APP) fraud, particularly as domestic and cross-border payments become faster, allowing fraudsters to exploit these speed enhancements. Sahota explained that to counteract this, real-time verification at the payment initiation stage is essential to ensure funds reach the correct recipients rather than bad actors. However, current statistics reveal only 1% of global financial crime is intercepted, underscoring the scale of the challenge.
Sahota advocated for “positive friction” in payment systems. While frictionless transactions are popular for their speed and convenience, he argued that a moderate amount of friction could protect consumers from scams that create high-pressure situations. A strategic pause in the payment process can confirm recipients’ identities, reducing risk and ensuring that payments are secure and final. The importance of this was highlighted in Sahota’s discussion of a victim’s experience with romance scams, illustrating the need for systems to support and protect victims rather than penalize them for fraud-related financial loss.
LSEG Risk Intelligence, according to Sahota, addresses these issues through a lifecycle approach—integrating customer onboarding, ongoing risk assessment, and transaction monitoring. He emphasized a growing customer demand for global account verification, especially for cross-border payments, which allows for recipient identity confirmation before payment initiation. This approach not only supports fraud prevention but also provides customers with confidence in international transactions.
Kimberly Kacal, Head of Payments North America, Accenture
Kimberly Kacal, Accenture’s North American Payments Lead, recently shared insights into the rapid innovation within the payments sector at Money20/20. One of the most significant trends she highlighted is the increasing adoption of digital wallets, with consumer usage rising from 55% in 2022 to 85% in recent surveys. With Apple’s decision to open its NFC capabilities to third-party developers, more banks are now contemplating creating proprietary digital wallets, raising opportunities for personalized, branded customer experiences.
In commercial payments, Kacal emphasized the growth of virtual cards, particularly single-use virtual cards, which provide companies with greater control over spending. These cards allow organizations to allocate specific limits and restrict usage to authorized suppliers, embedding streamlined payments directly into their supply chains to pay vendors more efficiently.
Addressing the rising threat of global payment fraud, Kacal highlighted the alarming rise in deepfake fraud, where bad actors use AI to create convincing fake voices or videos, which can be exploited for unauthorized money transfers. To combat this, Accenture is investing in solutions like Reality Defender, which helps detect and prevent AI-generated fakes in real-time. She noted that educating clients about the risks and red flags of deepfakes is critical to mitigating these risks.
When discussing AI’s broader impact on the payments landscape, Kacal explained how AI-driven insights enable companies to tailor customer experiences based on transaction history and preferences, enhancing personalization. Internally, AI helps financial institutions improve operational efficiencies by automating payment processes, further boosting organizational effectiveness.
These evolving payment and AI-driven fraud trends underscore the importance of adapting to emerging technologies and implementing robust security measures within the finance sector.
Michael Kaplan, EVP and Chief Revenue Officer, PayNearMe
Michael Kaplan, EVP and Chief Revenue Officer at PayNearMe, discussed his company’s role in “payments experience management,” where they provide a platform for seamless end-to-end payment processing across traditional and alternative payment methods. PayNearMe supports diverse sectors, notably bill payments in industries like auto lending and property management, and in the online sports betting/iGaming space. Kaplan emphasized that PayNearMe’s mission is to make payments straightforward for clients, lowering their “total cost of acceptance” by minimizing exceptions that can raise payment costs.
Kaplan highlighted the role of data, AI, and machine learning in optimizing payment processes. By using data to encourage the “optimal payment mix”—or guiding customers toward the most efficient payment methods—PayNearMe can reduce exceptions and improve transaction efficiency. Fraud prevention strategies vary across sectors; for bill pay, they focus on identifying friendly fraud (e.g., fraudulent attempts to reclaim car titles), while in iGaming, the emphasis is on preventing account takeovers and stolen card use. For this, PayNearMe partners with firms like Accertify and GIAC to enhance its fraud detection capabilities.
Kaplan also elaborated on PayNearMe’s expanded collaboration with PayPal, integrating Braintree to strengthen PayNearMe’s Smart SwitchTM technology, which routes transactions dynamically for improved reliability. This partnership with PayPal, which began with offering PayPal and Venmo as payment options, has evolved to enhance the dependability of PayNearMe’s services.
Anusha Ramanujam, Global Head of Payment Partnerships and Product Enablement, Square
Anusha Ramanujam, Global Head of Payment Partnerships and Product Enablement at Square, shared insights into the company’s focus on enhancing customer experiences and supporting small businesses through payment technology. Discussing the tap-to-pay trend, she noted that the pandemic accelerated contactless adoption in the U.S., with Square supporting sellers by making it simple to accept contactless payments directly on their devices. This setup, she explained, has significantly reduced transaction friction, allowing customers to pay effortlessly, enhancing customer satisfaction and personalizing the payment experience. Anusha shared the example of bridal stores and hairstylists using Square’s technology to make transactions feel seamless and integrated within a personal shopping experience.
When it comes to security and fraud prevention, Square is actively working with partners across the payment ecosystem to combat both in-person and online fraud. The company is leveraging technologies like 3D Secure and strong customer authentication to safeguard transactions, particularly in the e-commerce space where card-not-present fraud is more prevalent.
Anusha also highlighted Square’s integration of AI across its tools, such as using AI-driven features to create marketing and staff announcements, set up inventory descriptions, and assist customer service advocates. She emphasized that AI is enabling Square’s sellers to manage their businesses more efficiently, while Square’s internal teams use conversational AI tools to improve customer support response times.
On innovation, Anusha pointed to the rise of kiosks as a notable trend, with a majority of consumers preferring self-checkout options. Square has adapted to this preference by offering kiosks in various retail verticals. Additionally, Square continues to focus on providing financial services like banking, loans, and credit options, catering to small businesses that have historically been underserved by traditional financial institutions. This approach aligns with Square’s mission of economic empowerment, supporting sellers in starting, running, and growing their businesses.
Chris LaConte, Chief Strategy Officer, Self Financial
Chris LaConte, Chief Strategy Officer of Self Financial, discussed the company’s mission to promote credit-building and financial resilience for US consumers. Self Financial’s offerings cater to individuals with limited or damaged credit histories, including credit builder loans and rent/utility payment reporting. This approach allows consumers to strengthen their credit scores without taking on additional debt, offering crucial assistance for those with subprime or no credit scores, who often face higher interest rates on loans and increased expenses on essentials like auto insurance.
LaConte highlighted that many renters miss out on building credit from timely rent payments, despite these being significant monthly expenses. With Self Financial’s services, renters can report these payments to credit bureaus, potentially improving their credit scores without additional borrowing. This service can be impactful, especially as delinquencies and credit card debt are on the rise, and savings rates are at record lows.
At Money20/20, LaConte identified AI as a major trend. Self Financial leverages large language models (LLMs) to enhance rent payment identification, improving operational efficiency. He sees AI’s potential in personalizing credit-building advice, enabling tailored paths to credit goals like homeownership or car financing, based on individual credit profiles. LaConte envisions AI-driven guidance as a way to simplify complex financial journeys for Self Financial’s users.
