As the overseas travel market continues to heat up, the convenience and security of cross-border payments have become a key focus. A recent Visa report indicates that a staggering 73% of Taiwanese consumers plan to travel overseas within the next year, ranking first in the Asia-Pacific region and 8 percentage points higher than the regional average, indicating a high propensity among Taiwanese travelers to travel overseas in the coming year. As payment demand for cross-border travel increases, the importance of payment security becomes increasingly prominent. The application of AI in fraud prevention and control will continue to deepen, establishing higher standards of transaction security and payment experience for consumers and merchants.
Visa Taiwan General Manager Huang Huiqin said, "To meet the financial flow and payment security demands brought about by the cross-border tourism boom, Visa continues to promote diversified payment methods, providing consumers with more payment options. We are also strengthening digital payment security through AI technology research and development and focusing on data, allowing consumers to enjoy and pay with peace of mind. Furthermore, Visa will continue to share the latest market insights and analyze future payment trends. With security as the core, we will drive Taiwanese consumers and businesses towards a smarter and more convenient cashless payment era."
Trend 1: Cross-border payment demand will continue to accelerate
According to a Visa report [2], cash (68%) and credit cards (65%) are the main payment methods for Taiwanese tourists traveling abroad. At the same time, nearly 4% of the spending (38%) on a single trip is spent on shopping. Among them, 74% of tourists use a single credit card for consumption on a single trip, and 26% of tourists use multiple credit cards for payment. In the survey, Taiwanese tourists interviewed pointed out that the top five tourist destinations are Japan (58%), South Korea (18%), Mainland China (17%), Thailand (11%), and Hong Kong (8%), which has driven the growth of related cross-border payments.
Trend 2: AI fraud prevention and control will reshape the payment ecosystem
Security is the cornerstone of every payment experience, and AI is playing a critical role in personalizing the payment experience and preventing and controlling fraud. As deep learning algorithms mature and become more sophisticated, AI can more effectively analyze transaction patterns, instantly detect potential risks, and comprehensively enhance payment security and reliability. This year, Visa launched three AI-powered risk and fraud management solutions focused on reducing fraud risk for account-to-account (A2A) instant payments, card-not-present (CNP) payments, and transactions within and outside the Visa payment network, further fostering a safer and more trusted payment environment for consumers and merchants.
Trend 3: Biometrics simplify identity authentication
In addition to AI-powered real-time risk management, identity verification is also a crucial component of payment security, avoiding over-reliance on one-time passwords (OTPs), which can place consumers who proactively authorize transactions at risk of fraudulent activity on their end. Identity verification is increasingly turning to facial recognition, fingerprints, and other biometrics to enhance payment security and convenience. Visa Payment Passkey, launched this year, is based on the latest FIDO (Finding Identity Dominion) standards. This allows consumers to quickly scan biometric features like their face or fingerprint on their personal device to authenticate their identity and authorize online payments, making online transactions simpler and more secure.
Trend 4: Account-to-account payment processes are becoming increasingly streamlined
The account-to-account cardless payment process will also become more streamlined, offering consumers a wider range of payment options. Meanwhile, while these instant account payments are becoming increasingly popular among consumers, they are also becoming a target for fraud. To address this, Visa has launched Visa Protect for A2A Payments, which uses AI technology to identify high-risk transactions and enhance the security of instant account payments.
Trend 5: Rapid Development of Embedded Finance
With the development of diverse payment methods, the integration of payment solutions has become a trend, particularly within the merchant ecosystem, where it has seen significant growth. Visa has observed a continued increase in the adoption of embedded finance lending products, demonstrating strong market demand. If implemented effectively, embedded finance can create a win-win for all parties involved: financial service providers can expand their market through low-cost distribution; technology providers can meet consumer expectations for convenience and efficiency; and digital platforms benefit from increased user engagement and interactivity. Ultimately, users can enjoy efficient and convenient financial services within a single platform.
