Securing Digital Transactions: The Role of AI, Big Data, and Biometric Authentication in Modern Payment Systems

In an era where digital transactions are increasingly integral to economic activity, ensuring their security has become paramount. This paper explores the pivotal role of Artificial Intelligence (AI), Big Data, and Biometric Authentication in fortifying modern payment systems against fraud and cyber threats. AI algorithms enhance transaction security through predictive analytics and anomaly detection, while Big Data provides comprehensive insights into transactional patterns and potential vulnerabilities. Biometric authentication, incorporating technologies such as fingerprint recognition, facial recognition, and iris scanning, offers a robust layer of user verification that significantly reduces the risk of unauthorized access. By integrating these advanced technologies, payment systems can achieve a higher level of security, providing both consumers and financial institutions with greater confidence. This study discusses the current advancements in these fields, evaluates their effectiveness in real-world applications, and addresses the challenges and future directions for their integration in securing digital transactions.