Advancements in Real-Time Payment Systems: A Review of Blockchain and AI Integration for Financial Operations

• Author(s): Chigozie Regina Nwangele ; Ademola Adewuyi ; Ayodeji Ajuwon ; Abiola Oyeronke Akintobi
• Paper ID: 1708928
• Page: 206-221
• Published Date: 28-02-2021
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 4 Issue 8 February-2021

Abstract

Real-time payment systems have revolutionized the financial landscape by enabling instantaneous transfer of funds, improving liquidity, and enhancing customer experience. Recent advancements focus on integrating emerging technologies such as blockchain and Artificial Intelligence (AI) to address existing challenges related to security, transparency, scalability, and fraud prevention. This review examines the current state of blockchain and AI integration within real-time payment systems, highlighting their synergistic potential to transform financial operations. Blockchain technology offers a decentralized, immutable ledger that enhances transactional transparency and security while reducing the reliance on centralized intermediaries. Its application in real-time payments facilitates faster settlement, lowers transaction costs, and mitigates fraud risks through cryptographic verification and consensus mechanisms. However, scalability and interoperability remain challenges, prompting ongoing research into hybrid blockchain models and cross-chain protocols. Simultaneously, AI contributes to real-time payments by improving risk assessment, fraud detection, and operational efficiency. Machine learning algorithms analyze transactional data patterns in real time to identify suspicious activities, optimize payment routing, and personalize customer interactions. AI-powered automation also streamlines compliance processes, reducing manual intervention and associated errors. The integration of blockchain and AI creates a robust ecosystem for real-time payment systems, combining blockchain’s secure infrastructure with AI’s intelligent analytics. This fusion supports enhanced decision-making, adaptive fraud prevention, and dynamic system optimization, enabling financial institutions to meet evolving regulatory and customer demands. This review synthesizes recent academic and industry research to map technological trends, identify implementation challenges, and propose future directions. It underscores the importance of developing standardized protocols, addressing privacy concerns, and fostering collaboration between technology providers, regulators, and financial institutions. The findings suggest that blockchain and AI integration holds significant promise for the next generation of real-time payment systems, offering improved security, efficiency, and inclusivity in financial operations worldwide.

Keywords

Advancements, Real-time, Payment systems, Blockchain, AI integration, Financial operations

Citations

IRE Journals:
Chigozie Regina Nwangele , Ademola Adewuyi , Ayodeji Ajuwon , Abiola Oyeronke Akintobi "Advancements in Real-Time Payment Systems: A Review of Blockchain and AI Integration for Financial Operations" Iconic Research And Engineering Journals Volume 4 Issue 8 2021 Page 206-221

IEEE:
Chigozie Regina Nwangele , Ademola Adewuyi , Ayodeji Ajuwon , Abiola Oyeronke Akintobi "Advancements in Real-Time Payment Systems: A Review of Blockchain and AI Integration for Financial Operations" Iconic Research And Engineering Journals, 4(8)