The impact of artificial intelligence and machine learning on cross-border payment systems: Enhancing efficiency, security and compliance

Cross-border payment systems play a vital role in global trade but are often hindered by inefficiencies such as high transaction costs, prolonged processing times, and security vulnerabilities. This study presents an empirical analysis of AI-powered payment systems, assessing their effectiveness in optimizing transaction routing, enhancing fraud detection, automating compliance processes, and improving foreign exchange management. Using transaction data from fintech platforms that have implemented AI-driven payment solutions, this research evaluates the tangible benefits of Artificial Intelligence (AI) integration. The findings indicate that AI significantly reduces processing times and fraud risks while enhancing cost efficiency. This paper details the research methodology, key results, and a comprehensive discussion on the transformative impact of AI and machine learning (ML) on international payment infrastructures.