PhonePe Extensively Using Machine Learning For Fraud Detection

SUMMARY

Speaking at Inc42’s 'The GenAI Summit', PhonePe CTO and cofounder Rahul Chari said while there is a lot of buzz around generative AI, people often confuse AI with GenAI

Commenting on GenAI, Chari said from PhonePe's perspective, it can be used to create content that can add value to the business

The GenAI Summit brought together who’s who from the GenAI space to discuss funding opportunities, impact of the technology on various sectors, among others

Like most of the sectors, Indian startups in the fintech segment are also leveraging artificial intelligence (AI) to increase efficiency and boost productivity.

PhonePe, valued at $12 Bn, has been at the forefront of this AI adoption in the fintech sector.

Speaking at Inc42’s ‘The GenAI Summit’, PhonePe CTO and cofounder Rahul Chari said while there is a lot of buzz around generative AI (GenAI), people often confuse AI with GenAI.

“PhonePe has been working with AI, especially with the subset of machine learning (ML). Machine learning models mostly learn from our sample data sets towards some sort of prediction with some sort of confidence. So the scope of what it can do is limited, but it is sharp,” Chari said.

He said PhonePe uses ML models mostly for risk and fraud detection. “For us ML model is almost a bread and butter for a lot of areas, including fraud detection,” he said.

“For risk and fraud detection we do around north of $230 Mn and $240 Mn daily transactions. Even if you take a few basis points of fraud happening at that point, that is significantly huge,” he added.

Commenting on GenAI, Chari said from PhonePe’s perspective, it can be used to create content that can add value to the business. “…I am excited about certain aspects of GenAI, most importantly the productive side of things,” he said.

Amid the ongoing funding winter, Walmart-backed PhonePe raised nearly $1 Bn in 2023 from the likes of GIC and General Atlantic. It has has been on an expansion spree since then, launching multiple new offerings, including separate apps for ecommerce (Pincode) and investment tech (Share.Market) and also its own apps store, Indus Appstore.

The startup’s revenue surged 77% to INR 2,913.7 Cr in FY23 from INR 1,646.2 Cr in FY22. The growth in revenue was driven by the launch and scale-up of new products and businesses such as smart speakers, rent payments, and insurance distribution.

Last month, it announced that its users can now make digital payments in the UAE with the help of UPI.

The GenAI Summit brought together who’s who from the GenAI space to discuss funding opportunities, impact of the technology on various sectors, among others.