Akhileshwar Padala integrates advanced tech to revolutionise fuel retail payment systems, speeding processing and reducing fraud

By Ellen F. Warren

Akhileshwar Padala manages software engineering at Allied Electronics, an omnichannel company serving the retail petroleum industry since 1978. With more than 52,000 interfaces installed at global oil enterprises, travel plazas, convenience stores, and other markets, the company is a leader in developing and implementing new technology for service station automation, including real-time payments and forecourt controllers.

As head of engineering, Akhileshwar designs and architects innovative fuel software solutions, integrating advanced technologies including artificial intelligence, computer vision, machine learning, cloud computing, and Internet of Things (IoT), to build robust software and hardware products for demanding fuel retailing environments. Among his many accomplishments, he developed a state-of-the-art fuel payment application capable of processing payments in real-time within 10 milliseconds.

Akhileshwar directs a top-tier engineering team with a focus on creating user-centric solutions that drive process improvement and operational outcomes for both individuals and organisations. Whether designing for business customers or consumers, his objective is to offer seamless integration and top performance to improve daily user experiences in the forecourt and at the fuel pump.  

RTIH spoke with Akhileshwar about his engineering innovations for this highly specialised field, and how emerging technologies are impacting the future of the fuel retailing marketplace.

RTIH: Akhileshwar, convenience and fuels retailing is an $860 billion industry worldwide. In the United States, where an estimated 40 million drivers fuel their vehicles daily, 80% of retail fuel is purchased at a convenience store forecourt.

While most consumers don’t think about the software and hardware systems that make it possible for them to quickly fill their tank, the fueling interaction is one that drivers repeat frequently over their lifetime. Compounding that impact for fuel retailers, surveys show that a consumer’s forecourt experience will also influence whether they shop at the convenience store. How does this knowledge influence what you are doing in the realm of fuel software solutions?

AP: A whopping majority of gas stations in the USA are built as convenience stores. The primary business of any gas station is convenience and retail, not just selling fuel. The consumer’s experience at the forecourt (fuel pumps) greatly influences inside sales, which is crucial for business profitability.

Understanding this consumer behaviour and its impact on profitability drives us to build reliable, high-performance forecourt solutions. My focus is on delivering seamless fueling experiences through real-time, fail-safe systems that ensure uninterrupted operations.

Providing a safe and secure forecourt experience is another crucial factor in keeping loyal customers, which is why security of the consumer’s payment data is always at the top of my priorities. Integrations with Point of Sale (PoS), mobile payments, and loyalty systems will also encourage in-store shopping and retaining loyal customers.  

RTIH: Was this desire to solve customer centric problems behind the groundbreaking new fuel payment application that you developed to substantially speed payment processing times? Your company estimated that your innovation will process billions of dollars’ worth of transactions just in its first year of operations. Tell us about your process for creating this application, and what it means for convenience stores and their fuel customers.

AP: Our new fuel payment application is built with security, high performance, and reliability as its core pillars. With our new solution we can deliver faster payment processing and a seamless experience at the forecourt.

Any software deployed in retail stores that processes or handles payment information must undergo Payment Card Industry Software Security Framework (PCI SSF) certification. This certification ensures compliance with strict security standards to protect payment data from breaches and fraud. However, the PCI SSF process is both expensive and time-consuming due to its comprehensive evaluation of security practices, code reviews, and rigorous testing requirements.

Compliance with PCI SSF can cause substantial delays for retailers and PoS companies in reaching the market, resulting in missed revenues and profits. With our new fuel payment solution, retailers and PoS providers can take their systems out of scope for PCI validation, allowing them to deploy to the market in just days, compared to the typical 9-12 months required for certification.

This not only helps retailers achieve their business goals, but also contributes substantially to the US economy, because a faster time to market means more jobs, more taxes, and a stronger economy.

RTIH: As your organisation’s head of engineering, you have pioneered the initiative to modernize the company’s software products, ensuring cloud compliance to align businesses with emerging software trends, and offer your customers greater flexibility in managing software development. How are your products evolving with this initiative? Are customers receptive to the changes, or is there a learning curve?

AP: While fuel is a critical infrastructure, it has historically been overlooked in terms of software and hardware upgrades, but this is no longer the case. With cloud computing, wireless communications, and artificial intelligence in fuel software, it is now easy for customers to upgrade and efficiently manage day-to-day operations at fuel stations. This modernisation is exactly what the industry has been waiting for, with requirements being driven by the retailers themselves.  

Although there is a steep learning curve associated with this modernisation, retailers are excited about these technological shifts. My new technological initiatives are enabling retailers to deliver targeted marketing at the fuel pump and maintain equipment more efficiently by utilising proactive monitoring services to ensure smooth operations and high availability.

RTIH: Can you tell us about other ways that you are using AI to enhance the customer experience at fuel stations?

AP: As of today AI in fuel is still under development. Some use cases that I am exploring and actively working on are vehicle and facial recognition systems to automatically detect payment information; the goal here is to reduce transaction time and secure payment data, furthering our mission to provide a seamless customer experience. 

Another key initiative is our proactive monitoring service using AI. This technology continuously monitors fuel pumps, underground fuel tanks, and other equipment at gas stations, running predictive analytics to detect potential issues before they cause failures.

By leveraging this technology, retailers can maintain pump equipment more effectively, thereby reducing down times and the risk of service interruptions that negatively impact the customer experience, as well as the business’s profitability.  

RTIH: You are a recognised expert in implementing technologies to increase payment security and reduce financial fraud in fuel retailing. Tell us about your innovations in this area. How are you protecting financial transactions?

AP:  Payment security is always my top priority. With all our software, I ensure that we follow the best industry security practices. Furthermore, by implementing an innovative approach using randomized encryption within in-memory buffers, I have been able to fully secure payment information at the fuel pump.

This method ensures that sensitive payment data is only accessible to the active system instance when needed and is immediately destroyed after use. I design software using strong encryption algorithms such as AES-256 and RSA to secure payment transactions.

Additionally, I am  actively researching fraud detection systems using AI to identify suspicious activity in real time, making it virtually impossible for anyone to access the information. This comprehensive, multi-layered security approach ensures safe and seamless payment processing for consumers.  

RTIH: Another achievement you’ve implemented at Allied is streamlining the software development process by integrating it with AI-based tools. Did you use this process to design the innovations we’ve been discussing? How does this process change the way you and your engineering teams are designing products and bringing them to market?

AP: Allied has been a pioneer in electronic payment systems at fuel pumps for more than 40 years, building a vast repository of data and documentation. However, this extensive documentation was scattered across multiple locations and lacked proper organisation, making it challenging and time-consuming for anyone to navigate and learn the system effectively.

I successfully implemented a new AI driven development process and an AI powered chatbot extensively trained on both existing and continuously evolving documentation. Engineers and technical support staff can now interact with the AI powered chatbot to receive comprehensive answers to their questions or guidance on required code changes.

This capability has significantly boosted my team’s productivity and throughput by reducing time spent searching for information and enabling faster problem-solving.

RTIH: While we are discussing safety, you have also been at the forefront of the “Fuel AI” initiative, which leverages AI to reduce the risk of fire accidents at gas stations. How do you train AI to do this? Is this system widely in use yet? Tell us how you came to be involved in this effort, and what kinds of challenges you have had to overcome in developing the program.

AP: As an industry expert, I frequently receive invitations from various conferences and organisations to share insights on technological advancements.

During one of Allied’s conferences, I initiated a collaboration with a cutting-edge artificial intelligence research group to address the critical issue of fire accidents at gas stations. Images and video footage of previous incidents serve as essential training data for AI models, and we were able to successfully gather numerous video footage samples to initially train our AI models.

We’ve also been leveraging computer graphics and simulations to generate synthetic data, further enhancing the AI’s training process. This approach allows us to create diverse and realistic scenarios, which improve the system's ability to detect and respond to potential fire hazards at gas stations.

This partnership aims to leverage AI powered predictive analytics and real-time monitoring systems to enhance safety and prevent potential incidents. As of today, a few prototype stations are equipped with this technology, with more to come in the future.  

RTIH: As Allied’s engineering leader, you have been spearheading projects that integrate AI into inventory management and automated ordering systems. Tell us about this initiative. And since this is cutting-edge technology, how do you train your teams to develop these future-forward projects?

AP:  The proactive monitoring services with predictive analytics continuously monitor the site for fuel dispensed and fuel inventory. By analysing historical data based on factors such as weather, time of day, and holiday seasons, the system can anticipate demand and optimize operations, ensuring fuel availability and minimizing disruptions.

For example, during the holiday season, based on historical data, the software can anticipate fuel demand. If the fuel level is running low or is projected to reach a low threshold, the software, with proper authorization, can automatically place an order for fuel delivery without manual intervention. This allows for continuous operation of the gas station serving consumers.

I promote a culture of knowledge sharing and collaboration, where team members share their learnings, challenges, and insights with each other. I also emphasise the importance of staying agile and adapting to the fast-paced nature of technology. By giving my teams the freedom to innovate, supporting their professional growth, and encouraging open communication, I empower them to develop solutions that anticipate future trends and meet the evolving needs of our industry.                       

RTIH: One area that you are particularly focused on is using AI’s predictive modeling and machine learning capabilities to develop fuel software solutions for the petroleum industry and gas station operations. What are the opportunities in this area? Can you share with us what you are working on? How is predictive modeling changing the fuel retailing industry?

AP: AI’s predictive modeling and machine learning offer transformative opportunities in the petroleum industry and gas station operations. These technologies enable data driven decisions by analysing historical and real-time data to predict future events.

Currently, we’re developing AI powered solutions that optimise fuel inventory management by forecasting fuel demand based on weather patterns, traffic flow, and past sales data. We’re also implementing predictive maintenance for fuel pumps, underground tanks, and forecourt systems, reducing downtime and ensuring seamless operations. 

Predictive analytics with AI is revolutionising the fuel industry by enabling dynamic pricing, and customer engagement platforms that can deliver personalised promotions at the pump to boost in-store sales, with integrations for fraud detection to safeguard payment data. I am very excited about what this means for our industry.

RTIH: Since joining Allied in 2023, you have received high marks for cultivating a security-first mindset, seamlessly integrating AI into corporate workflow processes, and cultivating a culture of continuous learning in the engineering teams and individuals who you supervise. You previously worked for about a decade with OpenText Technologies Ltd and Toshiba Global Commerce Solutions. Where did you develop your leadership skills? How do you provide visionary leadership and inspire your team members to strive for excellence?

AP: I have developed my leadership skills over the course of my career, particularly during my tenure at Toshiba, where I managed complex projects and led cross-functional teams in a fast-paced, technology-driven environment. I was responsible for driving key fuel initiatives, which were among the most challenging and helped shape me into a strong leader.

My approach to leadership is rooted in a security-first mindset, empowering team members through continuous learning, and driving innovation. To inspire excellence, I lead by example - prioritising transparency, open communication, and collaboration among team members. The quest for perfection and excellence distinguish a good engineer from a great one, and I encourage my team to embrace challenges, experiment with new ideas, and learn from both successes and setbacks.

RTIH: You are very involved in contributing to the industry and professional development through conferences and thought leadership. In closing, what is your forecast for the forecourt? Thinking about technological transformation, what can fuel retailers look forward to over the next 5-10 years?

AP: The legacy fuel software, which relies on bulky hardware and proprietary software developed decades ago, is clearly aging. Soon, this will be replaced by cloud-based solutions that are more efficient, scalable, and easier to maintain.

As AI continues to evolve, we can expect high level security enhancements, such as facial and vehicle recognition systems to initiate payments directly at the pump. Additionally, I wouldn't be surprised to see robotic arms that automatically fuel vehicles, allowing consumers to enjoy a seamless shopping experience inside the store while their fuel is being dispensed.