Palmpay, a Nigerian fintech, has integrated artificial intelligence (AI) into its platform to prevent fraud.

This, according to the business, would strengthen its security and significantly improve the fintech's ability to detect and counteract fraudulent activity in real time, resulting in a safer experience for its millions of customers.

Palmpay Nigeria's managing director, Chika Nwosu, revealed this on the sidelines of the company's fifth anniversary.

Nwosu acknowledged the multiple obstacles that the fintech industry has; particularly those linked to fraud, and explained how the company is combating these concerns with artificial intelligence and other fraud monitoring tools.

Payments firms including Flutterwave, Interswitch, Palmpay, and Opay have all incurred large losses as a result of fraudulent activities.

Nwosu stressed the importance of reducing fraud: “Fraud detection is a critical component of our operations. By leveraging AI technology, we are not only enhancing our security measures but also building trust with our customers, ensuring they can transact with confidence.”

According to him, Palmpay was launched five years ago and has grown significantly, with over 35 million users, 300 million monthly transactions, and a network of 1 million mobile merchants and vendors, necessitating increased platform security.