24% of Bank CEOs Prioritize AI for Cybersecurity Amid Embedded Payment Growth

A recent PYMNTS Intelligence report, conducted in collaboration with WEX, highlights that embedded payments are transforming fraud prevention from a reactive cleanup task into a proactive design challenge. As embedded finance becomes core infrastructure for modern business platforms, transaction values are projected to exceed $7 trillion in 2026. However, this growth introduces new risks, with fraud attempts targeting embedded products growing two to three times faster than those in traditional banking. Consequently, 35% of organizations have delayed related initiatives due to security concerns. The report emphasizes that integrating security controls directly into workflows, such as using virtual cards and real-time monitoring, can significantly reduce fraud risk. Artificial intelligence plays a crucial role in this shift, with KPMG data indicating that 70% of banking CEOs plan to allocate substantial budgets to AI. Notably, 24% of these executives cite enhanced cybersecurity as the primary benefit of AI adoption. The findings suggest that by embedding identity verification, permissions, and enforcement within transaction flows, businesses can achieve both speed and safety, allowing them to scale embedded payment solutions with greater confidence and reduced vulnerability.