A Digital Payment System for European Monetary Autonomy

Purpose - The aim of the study is to examine the impact of digital payment systems on individual savings rates and spending habits in Türkiye. Additionally, it is to evaluate the impact of digital payment systems on individual spending and savings within the framework of the COVID-19 crisis. Methodology - The research aims to examine the impact of digital payment systems on individual savings rates and spending habits by adopting a quantitative approach. Additionally, as a sub-objective, it aims to evaluate the impact of digital payment systems on individual spending and savings within the framework of the COVID-19 crisis. In the study, quarterly data for the period 2016Q1-2023Q4 were analyzed using household consumption expenditures, gross savings amount, digital payment systems (mobile payment, online banking, contactless payments, and all other digital payment methods), consumer price index, deposit interest rate, consumer credit interest rate, and consumer confidence index. The Newey–West Standard Errors Estimator has been used for data analysis. Findings - It has been shown digital payment systems have a statistically significant and positive effect on household final consumption expenditures and gross savings. Again, it has been concluded the pandemic period had a statistically significant and negative impact on household final consumption expenditures and gross savings. Additionally, it has been observed digital payment systems had an impact on increasing household consumption expenditures and savings during the pandemic period. Conclusion - - In the study, the effects of digital payment systems in Turkey on individual savings rates and spending habits were examined. The findings obtained indicate that digital payment systems have a statistically significant and positive impact on household final consumption expenditures and gross savings. In addition, it has been determined that the COVID-19 pandemic has a statistically significant and negative impact on household consumption expenditures and gross savings. Additionally, it has been observed that digital payment systems played a positive role in increasing individuals' consumption expenditures and savings during the pandemic period. These findings reveal how digital payment infrastructure shapes individuals' financial behaviors during times of crisis, providing an important foundation for future research examining the interaction between digital finance and crisis dynamics. Keywords: Digital payment systems, household final consumption expenditure, gross savings rate, Covid-19 pandemic. JEL Codes: D12, E21, E32

Purpose- This study examines the development of digital payment systems with the evolution of communication technologies, financial institutions and fintech companies. Also, this study analyzes the expected effects of developing payment systems and fintech applications. Methodology- The study defines different types of digital payment systems, compares general characteristics of digital payments, provides a timeline of developments for digital payment systems and compares most used digital payment applications. Findings- The payments market is changing in line with consumer behavior. Cashless economies, mobile banking, instant payments, digital commerce, and the growing impact of regulatory agencies are a few trends affecting the payments market. Contactless payments also make the payment process easier and more convenient for consumers who benefit from shorter lines, cash-on-hand issue elimination, and faster moving queues.The Asia-Pacific region is anticipated to witness significant growth in the market such as China and India. Digital and mobile wallets account for 58% of regional e-commerce payments in the region and are expected to reach 68.2% by 2023. The e-commerce sector is witnessing a spike in demand as consumers order essential items such as food and clothes through e-commerce websites, where most consumers prefer the digital mode of payment.Transition towards the cashless economy, emergence of new online financial institutions, a decentralized monetary governance with the adoption of blockchain and cryptocurrencies are envisioned. Advancements in payment technologies as well as digital payment systems adoption will create momentum and create further investments towards digitalization of monetary exchange. Conclusion- It is concluded that evolution of digital payment systems will extend convenience, return, convergence, cross-border and time-limitless transaction. Inclusion of the unbanked is expected to drive growth and create new opportunities. There is a clear transition towards a cashless economy with the increasing adoption of digital payment systems by all spenders. Speed, privacy, convenience, security and decentralization will mean a wider inclusion for all global citizens; even including some unbanked population. Decentralization and blockchain will mean a blur in distribution of wealth, some money leaving the traditional banking systems. Digital payment systems provide a wide range of transaction options to its users; swiped credit cards, electronic checks, mobile wallets and contactless payment. By 2050s, the circulation of physical money is expected to vanish, leaving its place to virtual currencies changed on digital platforms. Keywords: Digital payments, online transactions, digital wallets, e-payment, cashless economy JEL Codes: M21, O33, O42

In recent years, under the influence of the COVID-19 pandemic, China's digital payment system has encountered significant opportunities, challenges, and changes. The digital payment system mainly includes three parts: electronic currency, electronic payment, and digital currency. This paper takes the perspective of the post-pandemic era and integrates the previous research on the digital payment system. It comprehensively analyzes the current situation, challenges, and development opportunities of China's digital payment system from different angles by examining the development of China's digital payment market. It is found that the pandemic has stimulated the continuous development of digital payment, gradually replacing cash settlement. In the post-pandemic era, emerging industries have shown strong vitality for digital payment. However, digital payment also has risks of inadequate information security, digital divide, and private enterprise monopolies. In the post-pandemic era, digital payment has more development opportunities and presents a sustainable development trend with the promotion of legal digital currency, stimulation of emerging industries, and support of government policies. This article proposes corresponding forward-looking suggestions from the perspectives of governments, companies, and individuals to further promote the development of China's future digital payment system in response to the above risks. Specifically, it should improve risk control and data security protection mechanisms, help vulnerable groups cross the digital divide and mobile payment dilemma, and accelerate the promotion and use of China's legal digital currency.

Blockchain technology has become significant for financial sectors, especially digital payment systems, offering enhanced security, transparency, and efficiency. However, there is limited research on the factors influencing user trust in and acceptance of blockchain adoption in digital payment systems. This systematic review provides insight into the key factors impacting consumers’ perceptions and behaviours towards embracing blockchain technology. A total of 1859 studies were collected, with 48 meeting the criteria for comprehensive analysis. The results showed that security, privacy, transparency, and regulation are the most significant factors influencing trust for blockchain adoption. The most influential factors identified in the Unified Theory of Acceptance and Use of Technology (UTAUT) model include performance expectancy, effort expectancy, social influence, and facilitating conditions. Incorporating a trust and acceptance model could be a viable approach to tackling obstacles and ensuring the successful integration of blockchain technology into digital payment systems. Understanding these factors is crucial for creating a favourable atmosphere for adopting blockchain technology in digital payments. User-perspective research on blockchain adoption in digital payment systems is still insufficient, and this aspect still requires further investigation. Blockchain adoption in digital payment systems has not been sufficiently conducted from the user’s perspective, and there is a scope for it to be carried out. This review aims to shed light on the factors of trust in and acceptance of blockchain adoption in digital payment systems so that the full potential of blockchain technology can be realised. Understanding these factors and their intricate connections is imperative in fostering a conducive environment for the widespread acceptance of blockchain technology in digital payments.

In today's era, one cannot think about the success of any service industry including banking industry without information technology. The most recent technological advancement is the evolution of Digital Payment System. Government of India has started to promote and to create the awareness Programme towards the cashless and paperless transactions through digital payment system. One of the important part of the population is the huge pool of women's which are still so far away from adopting and accepting new type of digital payment system. In this paper, we focused on those aspects which influence on women's force to adopt the digital payment system as well as to measure their perception and approach towards it. Digital Payment System is a payment mechanism which facilitates the acceptance of electronic payment for online transactions. To promote the digital payment system, government started a campaign called the Digital India. The digital India Programme is a foremost programme of the government of India with a visualization to change India into a digitally empowered culture and knowledge economy. As part of promoting cashless business and converting India into less-cash culture, various modes of digital payments are available like internet banking, mobile wallets, banking card, USSD, AEPS, UPI, banks pre-paid cards, point of sale, mobile banking, micro ATMs, etc. These all are the new modes of transactions without actual existence of the cash in hand. The awareness campaigns are implemented only in the urban areas. With this service we save our time by carrying out banking transactions at any place and at any time, from our home or office, all we need is internet access. Although, women live in urban area due to migration for work but most of them are not a part of the awareness programme because they are illiterate and their poor life style. Digital payment system is completely based on the modern technology which includes electronic means and internet. Due to unawareness, lack of education and poor living condition, the women are not able to fulfill the basic requirements for availing the facility of digital payment system.

India used to be predominantly a cash-based economy, but in recent years, the digital payments industry in India has seen a shift as a result of increased technology innovation and an emphasis on digitalization. Consumers take advantage of digital's convenience and speed payments. This does not imply that cash transactions are completely absent from economic contexts, but rather that the total amount of cash payments is kept to a bare minimum An electronic payment system, also a cashless economy or environment is one in which a society has little or no currency and must rely on electronic channels such as debit cards, online banking, multifunctional ATMs, mobile payments, and electronic funds transfer internet banking to conduct transactions. A cashless environment does not imply a disregard for money; rather, it refers to a society in which people perform transactions on the internet. In today's economy, money is transferred electronically. The growth of e-payment culture, as well as the expansion of infrastructural facilities, are essential to attain the goal. In this project, the topics that are covered Overview of global payment system, India's digital payment system, varieties of digital payment systems in India, advantages and disadvantages, RBI initiative on digital payment and fraud in digital payment, and India's payment system moving ahead A comparison of banking cards, UPI, NEFT, RTGS, IMPS, and mobile wallets is also included. Keywords: Digital Banking, Internet Banking, Digital Payments, Mobile Payments, Digital Economy, Demonetization, Mobile Wallets.

This research aims to determine and analyze sales using a digital payment system on PD income. Nasep Jaya. The research was carried out at PD. Nasep Jaya, whose address is Jl. Raya Pantura Gempolsari, Simpang Village, Patokbeusi District, Rancamulya Village, Subang Regency, West Java. This research uses a qualitative descriptive approach with interview and field observation methods. The form of triangulation used in this research is source triangulation. The results of the research show 1) Sales growth is quite stable, especially around 80% of consumers subscribe every month. Although the use of digital payment systems has not had a significant impact on sales figures. This implementation succeeded in increasing service efficiency and transaction speed. 2). PD digital payment system. Nasep Jaya uses M-Banking, QRIS, and the marketplace platform as a digital payment system through the Shopee e-commerce application. However, economically, more competitive online selling prices provide benefits even though admin discounts of around 3% for Shopee, 0.7% QRIS, and Rp. 6,500 for interbank transfers. The use of M-Banking facilitates transactions efficiently, QRIS provides a faster and easier payment method, while the presence on e-commerce platforms, such as Shopee, expands market reach. 3) Molasses income from molasses using a digital payment system has increased from 2021 before using a digital system to 2022 after using digital by 8%. Digital payment technology is the key to increasing transaction efficiency and stimulating income growth
 Keywords: Digital Payments, Income, MSMEs, Sales

Digitalization in the payment system has been promoted by the Indonesian government since the government is targeting to become the largest digital economy in Southeast Asia. However, not all companies can adopt digital payments quickly. Small and Medium Enterprises (SMEs) have many obstacles to adopt innovative technologies, mainly due to a lack of knowledge and resources. On the other hand, many consumers are getting used to digital payments and demanding SMEs to facilitate their transaction processes with digital payment systems. Therefore, the primary purpose of this study is to analyze factors affecting the digital payment system adoption in SMEs, particularly small and medium-sized restaurants. It used an extended Technology Acceptance Model (TAM) as a theoretical framework. Thus, 120 data were gathered using self-administered questionnaires from owners or managers of small and medium-sized restaurants in Bogor, Indonesia. Structural Equation Modeling with Partial Least Square (SEM-PLS) was employed to assess the hypotheses that were developed. The findings suggested that the intention to use digital payment was determined by the perceived ease of usage, perceived usefulness, attitude towards digital payment, and trust. This research approved that the applicability of TAM with the inclusion of additional variables in the model and the adoption of the digital payment system in small and medium-sized restaurants in developing countries like Indonesia. It offers valuable information for policymakers and financial institutions such as banks in understanding the critical variables influencing large scale implementation of the digital payment system in Indonesia.

Type of the article: Research Article AbstractIn today’s competitive age, marketers have realized the need to identify the factors influencing customers’ perceptions of digital payments. This study helps in developing sustainable marketing strategies for the firm. The study’s major goal was to examine the factors influencing customers’ perception towards digital payment in Nepal. Causal comparative research design has been used. This study has used the primary data, collected through the structured questionnaire based on the 6-point Likert scale. Purposive sampling was employed, and 394 sample size was taken because at least 384 responses are representative sample for the unknown population. The study population was consumers who use digital payment systems in Nepal. The survey was conducted from June to October 2024 in Nepal. The questionnaire was distributed to the digital payment system users because they might have adequate knowledge regarding the digital payment systems. The path analysis examined the impact of ease of use, self-efficacy, perceived trust, perceived usefulness, and privacy and security on customers’ perception towards digital payment using the structural equation modeling. The result showed that ease of use (β = .189, p < 0.05), self-efficacy (β = .595, p < 0.05), and perceived usefulness (β = .168, p < 0.05) significantly impact customer perception towards digital payment. However, it was also discovered that perceived trust (β = .084, p > 0.05) and privacy and security (β = .044, p > 0.05) do not considerably influence customers’ perception towards digital payment in the Nepalese market. It is concluded that ease of use, self-efficacy, and perceived usefulness play an essential role in the perception development of customers towards digital payment system. Still, consumers have no trust and do not believe in the security towards digital payment. The study’s findings might be helpful for business people and future researchers to understand new market conditions and growth.

This analytical study examines the evolution of digital payment systems and the use by financial institutions and fintech companies in line with the changing user needs, along with the evolutionary developments in information technologies. It also makes a comparative analysis of digital payment platforms that are popularly used all over the world, e.g. PayPal, GooglePay, Wise. The introduction of the first ATM in 1967, the first contactless credit card payment in 1999, the introduction of blockchain in 2009, the emergence of GoogleWallet in 2011 and the introduction of Visa Click-to-pay in 2020 may be defined as the milestones of digital payment systems. Digital payment systems can be broadly classified as smart cards, online payments, mobile applications, blockchain transfers and biometric authentication. All payment systems in the world are generally shaped according to user needs. The exponential growth of e-commerce and the increasing influence of market regulators also contribute to shaping the future of payment systems. A decentralized monetary management is envisioned by the transition to a cashless economy, the emergence of new online financial institutions, and the adoption of blockchain and cryptocurrencies. It is concluded that the evolution of digital payment systems will expand convenience, refund, convergence, cross-border and time limitless transaction. With the increasing adoption of digital payment systems by all spenders, there is a clear transition towards a cashless economy. The current arguments in academic and professional platforms about the future of digital systems predict that by the 2050s, physical money will be completely out of circulation and these currencies will be replaced by virtual currencies that can easily be transferred over number of digital platforms.

PurposeAfter analyzing these uncountable benefits of digital or cashless payment, many European countries like Sweden, Finland and Canada has been trying to convert their payment system into cashless. Following these developed countries, the Bangladesh Government has taken a decision to transfer society as a cashless society by using information technologies for adopting the fourth industrial revolution over the world. Digital payment system is among the various options available for transforming a cashless society. First, this empirical study presents demographic information and digital payment characteristics on the basis of income levels. This study identifies influential factors of adopting digital payment systems. Finally, this study aims to justify how digital payments transform the Bangladeshi economy into a cashless society in developing countries.Design/methodology/approachThe study was administered to a sample of 1,000 Bangladeshi customers who had engaged in online banking transactions for the purpose of acquiring items and services through both social media platforms in Google Form format and face-to-face interactions in hard copy format. Among these, 647 questions were deemed usable and were used for data analysis, where the response rate was 68%. The SmartPLS is used to create and validate the structural equation modeling model presented for the research, as well as to evaluate the hypothesized correlations between the different constructs.FindingsThis cross-sectional study conducted the extended technology acceptance model (TAM) with perceived security (PS) and personal innovation (PI) variables to identify the influencing adoption factors of digital payment systems. This study finds that perceived ease of use, PI and perceived usefulness have a favorable impact on individuals’ attitudes toward adopting digital payment methods (DPMs). The study also indicated that PS did not influence negatively the adoption of digital payment system. Besides this, the adoption of digital payment will help to transform society into a cashless society in the future.Research limitations/implicationsIncreasingly prevalent across the nation. Several variables are required to facilitate the transition toward a cashless society. This study exclusively focuses on DPMs. Additionally, the data has been obtained exclusively from a single urban area. The adoption of DPMs has become increasingly prevalent across the nation.Practical implicationsThis study would help policymakers, marketers and bankers understand which factors affect digital payment infrastructure expansion. So, they can produce digital payment apps that are compatible with different devices, have fast transactions, are user-friendly, easy to use and highly secure to maintain good attitudes toward digital payment systems.Social implicationsFew studies have examined how DPMs affect cashless societies in developing countries like Bangladesh. According to researchers, to the best of the authors’ knowledge, this is the first study to explore how digital payments affect cashless society in Bangladesh and raise awareness about it.Originality/valueThe study extended the TAM model to PS and PI. This paper is also unique in the conceptual arguments and the subject theme of the research area.

Global Internet connectivity and updated and latest electronic devices increase in the availability of digital payment (e-payment) system according to your choice. Previous research showed that there are few variables which are important to implement digital payment system. But no study has been undertaken to understand the interaction/interrelationship between the selected variables and to develop the hierarchy of digital payment adoption variable. This paper aims to investigate the critical success factors (CSFs), through interpretive structural modelling (ISM). To identify the contextual relationships between the variables, experts from banking personnel and academia were consulted. The CSFs may ensure the customer adoption of digital payment. The research study mainly uses the deductive approach to consider secondary and primary sources of data. An extensive literature review was conducted to identify the ten CSFs, namely, compatibility, complexity, customer support management, top management support, infrastructure, expert selection, security, cultural factor, government policies and awareness. With the help of model development, these ten variables are interrelated and prioritised for digital adoption system. Moreover this paper explores sustainability and adoptability issue to digital payment. This study will assist researchers and policymakers in relevant fields.

The research explored the relationship between digital payment utilization and customer satisfaction among DepEd employees in Digos City, with a specific focus on GCash services. It employs a descriptive-correlational design, analyzing responses from 100 DepEd employees to understand this dynamic. The findings indicate a high level of digital payment utilization and customer satisfaction, suggesting that digital payment methods are well-integrated and appreciated by the employees. A significant correlation exists between the frequency of digital payment use and customer satisfaction levels. This emphasizes the need for improved digital payment systems to enhance user experience and security. For instance, simplifying the transactional procedures, enhancing technical protection measures, and increasing the extent of digital payment use are identified as significant predictors of customer satisfaction, highlighting areas for potential improvement to increase satisfaction. The study underscores the importance of continuous innovation in digital payment systems to meet user needs and enhance satisfaction. The implications are particularly relevant for educational institutions transitioning to digital payments, as they can benefit from a more streamlined and secure payment process. The research recommends focusing on transactional efficiency, technical protection, and perceived benefits to improve user satisfaction and adoption rates. By addressing these areas, institutions can ensure that their digital payment systems are more user-friendly and secure, thereby increasing overall satisfaction and adoption. This study highlights the critical role of digital payment systems in modernizing financial transactions within educational institutions. Continuous improvement and innovation in these systems are essential to maintain high levels of user satisfaction and to support the broader adoption of digital payments.

The Digital Economy Era must be utilized for the economy, especially the regional economy, it appears that regional economic development is somewhat difficult to develop because it still uses a traditional economic system. However, not all regions are willing to utilize digital payment systems for various reasons, especially business actors in traditional markets. The aim of this research is to look at the development of the digital economy on regional economic growth in the province of Bali. The method used in this research uses descriptive analysis to determine the impact and influence of digital payments on economic growth in the Bali region. Starting from looking at economic growth in Bali before using digital-based payments, and finally looking at economic growth in Bali after the digital payment system, especially in traditional markets. The results of this research show that there is an influence of digital payment systems on economic growth in the regions, with the many conveniences provided in digital payments making business actors in the regions prefer digital payment systems in transactions. The conclusion of this research is that increasing the income of local business actors who use automatic digital payment systems also increases regional income in Bali.

This research investigates the evolution of digital payment systems and decentralized financial infrastructures from a historical, technological, political, sociocultural, and economic angle. Digital payment systems are currently undergoing a radical market-driven transformation, as individual customers, corporations, and financial institutions alike are adopting private cryptocurrencies to retain value, transact, and keep accounting records, replace bank deposits for transactions, and provide and accept payment for goods or services. These traditional and novel use cases provide a unique and disruptive opportunity for both DeFi (Feenan et al., 2021; Brandl & Dieterich, 2023; Adisa et al., 2024) . Digital payment systems, also known as electronic payment systems or digital cash systems, are payment systems that electronically facilitate human or machine transactions using a digital currency between parties. Digital currencies may be either fiat or non-fiat, where new money is issued either digitally by a centralized body, typically a central bank, to exist parallel to physical money. Non-fiat currencies, in contrast, are developed and governed by decentralized entities or communities on a per-protocol basis, where the properties, supply characteristics and transaction processing methods of a new digital currency are coded by creators or proposed through a community-approved signaling mechanism. Examples of current digital payment systems include: bank payment transaction services; money transfer services; credit and debit card payment networks; and financial services and banking payment systems based on digital currencies.