A recent PYMNTS Intelligence report in partnership with Plaid reveals that nearly all surveyed firms that modernize fraud prevention infrastructure achieve significant reductions in operating costs and faster customer onboarding, with real-time detection of fraudulent activity key to these gains.
- 99% of firms see cost reductions after fraud infrastructure modernization
- 60% detect fraud instantly or within minutes with real-time verification
- 70% plan to expand payment automation and AI fraud detection within 12 months
Market signal
Payment and fintech companies globally are increasing investment in fraud prevention technologies that emphasize real-time detection and automation. According to the PYMNTS Intelligence report, 90% of firms link their fraud infrastructure upgrades directly to faster onboarding of legitimate customers, highlighting fraud control as a pathway to improved operational efficiency and customer experience rather than just loss prevention.
The data from 150 senior executives across multiple industries shows nearly universal recognition of the benefits, with 99% reporting lower operating costs—averaging an 8% drop—following modernization. Adoption of real-time ownership verification allows 60% to detect fraud almost immediately, compared to only 39% for those without such capabilities. These trends indicate a broad industry shift towards fraud prevention as a value-generating function.
Operator impact
Operators implementing modernized fraud controls are witnessing direct benefits including fewer customer service interactions and reduced payment failures. Enhanced real-time fraud detection minimizes delays and friction during onboarding, contributing to higher customer satisfaction and retention. Eighty-three percent of surveyed executives confirm increased customer satisfaction, while 80% report improvements in retention, positioning fraud prevention as a competitive differentiator.
However, challenges persist as 57% reported an uptick in fraud attempts over the previous year and nearly half cannot detect suspicious activity in real time. Despite nearly universal secure bank connectivity, only 49% effectively leverage this for real-time fraud signals. Operators face a pressing need to better integrate automation and AI-driven fraud detection tools to address evolving threats and capitalize on operational efficiencies.
What to watch next
Looking ahead, the report highlights industry intentions to further enhance fraud infrastructure. Over 70% of firms plan to adopt or expand payment reconciliation automation, while 65% will focus on automating identity verification and KYC processes. Additionally, 59% aim to incorporate secure bank connectivity or AI-based detection to accelerate fraud response and reduce operational burdens.
The pace and scale of these planned upgrades will be critical to shaping competitive dynamics in the payments market. Operators that swiftly integrate real-time capabilities stand to reduce fraud losses while improving onboarding speed and customer satisfaction. Tracking deployments of AI and secure connectivity-based fraud solutions will provide early indicators of market leadership and technological momentum in fraud prevention.