GenAI Is Cleared for Takeoff in Travel Payments

The future of payments isn’t just about what’s possible — it’s about how effectively those possibilities are realized.

When it comes to advancements like generative artificial intelligence (AI), where the opportunities are vast, balancing innovation with stability becomes crucial. That’s particularly the case for sectors as critical as payments.

“There’s so much blurring of the lines between the exciting stuff we see in the ChatGPTs of the world and the real-world application of machine learning. We have to keep it pragmatic and focused to ensure we’re doing cool new things without jeopardizing stability or reliability,” Tom Randklev, global head of product at CellPoint Digital, said during a discussion for the PYMNTS series “What’s Next In Payments: Memo to the GenAI Companies.”

This underscores a key challenge for tech providers: aligning rapid innovation cycles with the long-term stability and compliance requirements of banking and payments. Against this innovation backdrop, Randklev advocated for greater collaboration and a “frenemy” approach to innovation, where competitive entities work together to enhance the broader ecosystem.

As the payments industry explores AI applications, certain use cases have emerged as natural starting points, offering immediate value while minimizing risk. Among these early applications, fraud detection has proven particularly promising, combining the power of AI with the critical need for enhanced security.

Fraud Detection Represents the Frontline of GenAI’s Impact

Fraud detection stands out as one of the more promising applications of GenAI in payments, especially today.

“Generative AI fits best and fits easiest in this area [of fraud],” Randklev said, referencing CellPoint Digital’s own strides in predictive and adaptive modeling. The ability to leverage real-time behavioral analytics allows fraud systems to stay ahead of emerging threats, including deepfake fraud and other sophisticated cyber tactics, he said.

“Our experience has been that we’re able to do more predictive and adaptive modeling,” Randklev said. “This gives us a roadmap opportunity to look at more collaboration via confederated learning for secure exchanges of fraud insights. With zero latency fraud detection, we’re building an ecosystem that is not only reactive but proactive.”

The integration of advanced authentication modules, such as biometrics, further enhances security. These tools provide layered defenses while maintaining seamless user experiences — a critical balance as fraudsters evolve their techniques.

GenAI’s utility extends beyond fraud prevention into payments orchestration — the intelligent routing and management of payment transactions — and compliance, especially within the highly regulated travel industry. CellPoint Digital’s expertise in this sector has allowed it to capitalize on GenAI for refund processing and fraud optimization.

“There have been a lot of regulations, especially within the U.S. for the travel sector,” Randklev said. “Leveraging our deep expertise in airlines, combined with GenAI, allows us to address these challenges efficiently and effectively.”

By automating and optimizing workflows, CellPoint Digital ensures that airlines and travel operators can comply with evolving regulations while improving operational efficiency. This adaptability showcases how AI-driven innovation can align with stringent compliance requirements without sacrificing performance.

Future Horizons of AI and Travel Retailing

Looking ahead, Randklev sees tremendous potential for AI to reshape the travel industry. The emergence of the Offer Order Settle Deliver (OOSD) model — which connects customer offers, orders, payments and delivery within the travel industry — exemplifies how technology can streamline operations and enhance customer experiences in traditionally slow-moving sectors.

“We’re seeing a transformation in the travel industry,” Randklev said. “As customers explore OOSD, it creates a perfect storm of new and exciting use cases for AI and ML. The intersection of these technologies with travel retailing is set to redefine how airlines and other operators engage with their customers.”

Personalization is another area where GenAI is driving significant improvements.

“Through payment orchestration, we’re creating hyper-personalized, dynamic forms of payment presentation,” Randklev said. “We’re meeting our customers where they want to do business, when they want to do business, and providing the ability to pay however they want to.”

This approach enhances customer engagement and improves conversion rates for merchants. By supporting alternative payment methods and catering to unbanked populations, companies like CellPoint Digital are fostering inclusivity while optimizing the customer experience.

“This creates better conversion for merchants because they’re offering not just the standard payments we think of in the U.S., but also alternative methods that customers increasingly depend on,” Randklev said.