PayU Rolls Out AI-Powered Fraud Protection for Cross-Border Card Payments at Global Fintech Fest 2026

PayU Addresses Growing Fraud Challenges for Indian Merchants

PayU introduced an AI-powered fraud protection solution designed specifically for Indian merchants accepting international card payments. Launched at Global Fintech Fest 2026, the Fraud Liability Protect (FLP) system tackles a critical challenge facing businesses today: balancing robust fraud prevention with seamless payment experiences for legitimate customers1

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The timing matters. Indian merchants are increasingly accepting cross-border card payments as they expand globally, but fraudsters are simultaneously deploying AI to create sophisticated scams that are harder to detect. This creates a predicament: tighter fraud controls add friction at checkout and lead to declined legitimate transactions, while looser controls expose businesses to fraud-related losses and chargebacks2

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How Fraud Liability Protect Works

PayU's solution combines three core capabilities to protect Indian merchants without sacrificing payment success rates. The system uses AI/ML-based risk engines that evaluate every international card payment against multiple transaction and behavioral signals. This assessment determines the fraud risk level of each transaction in real-time1

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Based on this evaluation, the platform applies dynamic authentication that adjusts security measures according to risk levels. Low-risk transactions flow through with minimal friction, while higher-risk payments undergo additional verification checks. This risk-based decisioning ensures genuine customers aren't unnecessarily blocked while suspicious transactions face appropriate scrutiny2

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The third component provides fraud liability protection, covering merchants against eligible fraud chargebacks. This shields businesses from revenue losses tied to international card fraud, offering financial protection alongside technical safeguards1

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"Fraud protection should not come at the cost of payment acceptance, especially as Indian merchants scale across geographies," said Manas Mishra, chief product officer at PayU and Wibmo1

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Measurable Impact on Payment Success Rates

Early adopters are seeing concrete results. PayU reports that merchants using the solution have experienced approximately 4-5% improvement in international card payment success rates, alongside reduced fraud exposure1

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An online travel merchant provides a compelling case study. After implementing FLP, this business recorded a 14% improvement in payment success rates while achieving an 83% reduction in its fraud-to-sales ratio1

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. These numbers matter because failed cross-border card payments directly impact revenue and customer experience in sectors where margins are tight.

Target Sectors and Integration

The solution specifically targets small and medium businesses operating in travel, online travel agencies, airlines, e-commerce, quick commerce and food-tech sectors. These industries face particular vulnerability because international payment failures can immediately affect customer trust and bottom-line revenue1

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Fraud Liability Protect integrates directly with PayU's Checkout platform, making implementation straightforward for existing merchants. Food delivery platform Zomato is among the businesses already using the solution to provide smoother payment experiences while maintaining robust controls for higher-risk international transactions1

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Rising Stakes in Cross-Border Payments

This launch arrives as several homegrown fintech companies have secured cross-border payment aggregator licenses from the Reserve Bank of India, including PayU, Paytm, Razorpay, Juspay and Skydo2

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. These licenses enable Indian merchants to tap into international markets, but they also expand the attack surface for fraudsters.

Criminals are increasingly leveraging AI to create believable identities, clone faces and voices, and target businesses with sophisticated scams. Mishra emphasized that the solution protects against both human-initiated and AI-enabled fraud, addressing the full spectrum of threats facing merchants today1

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Watch for how this technology performs as fraud tactics evolve. The real test will be whether AI/ML-based risk engines can stay ahead of increasingly sophisticated AI-enabled fraud schemes while maintaining the improved payment success rates merchants need to compete globally.