Blockchain Integrated AI Systems for Secure Digital Payments and Financial Data Protection

Abstract

The proliferation of digital payment systems has created unprecedented opportunities for financial inclusion but has also increased exposure to cyber threats, fraud, and unauthorized data access. Traditional centralized payment infrastructures are vulnerable to single points of failure and insider attacks. This paper proposes a blockchain-integrated artificial intelligence (AI) framework for secure digital payments and financial data protection. By leveraging the immutable and decentralized characteristics of blockchain with AI-driven anomaly detection, transaction authentication, and predictive fraud analysis, the system ensures end-to-end security and real-time fraud mitigation. Experimental evaluation demonstrates that the integration of blockchain and AI enhances transactional integrity, reduces fraud incidence, and maintains compliance with regulatory standards. The framework represents a scalable and resilient architecture for next-generation secure FinTech ecosystems.