Artificial Intelligence revolutionizes cross-border payments

Cross-border payments are critical for Mexican companies looking to open up to new markets or reduce costs in their international trade. This is especially relevant at a time when Mexico has the opportunity to take advantage of nearshoring. Companies will be able to access local accounts in different countries, competitive exchange rates, fast settlements and low fees, which will allow them to reduce costs, improve their cash flow and accelerate their growth.

Mexico continues to become a territory of great opportunities to make business relationships with other powers such as the United States, Canada and China. And eCommerce is not left out of this game, since cross-border transactions represent 20% of digital commerce in Mexico.

In this way, Mexico is positioned as the second emerging economy with the highest number of purchases in foreign eCommerce globally, only behind the power of India. And this trend seems to take the economic sector by surprise, since it has contributed to its growth by bringing in a sales volume that exceeds 16 billion dollars in cross-border trade in 2024.

Cross-border payments have traditionally been a complex and costly process for both businesses and consumers. However, in the age of technology, artificial intelligence (AI) is playing a major role in simplifying and improving this process. From customer onboarding to fraud detection and technical support, AI is changing the way international transactions are conducted.

AI is driving the development of payment tools benefiting both businesses and customers through the following processes:

Simplified Onboarding

One of the crucial first steps in the cross-border payment process is onboarding, which involves onboarding new customers. AI has revolutionized this process by automating identity verification and document review, significantly streamlining account creation and reducing human error. Businesses can now complete the onboarding process more efficiently, giving customers a faster and more seamless experience.

Improved Know Your Customer (KYC)

KYC is essential to prevent fraud in international transactions. AI has improved this process by collecting and analyzing data in real time. AI systems can identify suspicious patterns of behavior and detect fraudulent activities more efficiently than traditional methods. This not only protects businesses, but also gives customers greater security and peace of mind when making cross-border transactions.

24/7 Technical Support

AI is also transforming technical support in the cross-border payments arena. AI-powered chatbots and virtual assistants can answer frequently asked questions and resolve technical issues at any time of the day or night. This improves the customer experience by providing instant answers and reduces the need to wait in line to speak to a human support agent.

Customer Benefits

Incorporating AI into the development of cross-border payment tools not only benefits businesses, but also has a positive impact on customers. Benefits include:

• Increased speed and efficiency: Processes are faster and completed with less friction.

• Improved security: AI reduces the risk of fraud and protects customer information.

• Seamless experience: 24/7 technical support ensures issues are resolved in a timely manner.

• Reduced costs: Businesses can offer more efficient and competitive services thanks to automation.

AI is transforming the way businesses and customers engage with international transactions. As this technology continues to evolve, a future of more efficient, secure and convenient cross-border payments is envisioned for everyone.