Evolution of the use of electronic payment instruments: financial and legal aspect

Abstract

The evolution of the use of electronic payment instruments from a finance law position is analyzed in the article. In the context of the latest technology dynamic introduction in the field of payments, the beginning of the history of modern electronic payment instruments can be conditionally linked to the creation of the London Clearing House in 1775 in the United Kingdom and the subsequent active use in the calculation of promissory notes and cheques, as well as other payment documents on the basis of clearing. At the same time, we propose to periodize the evolution of the use of electronic payment instruments in the calculation of foreign and domestic experience, which includes three main stages: Stage I (end of the XVIII century – end of the XIX century) formation of legal preconditions for the birth of the first electronic payment instruments in the form of promissory notes and cheques, as well as payment documents on the basis of clearing; Stage II (XX century) electronization of payment transactions with the support of their electronic means of payment (bank cards, mobile payment instruments), electronic purses for initiating payments, as well as the use of the first electronic money in order to pay for goods and services. Stage III (XXI Century – nowadays) digitization of payments, characterized by the active use of contactless chipped cards, contactless mobile instruments, electronic money, electronic payment means based on widespread electronic payments in the world of electronic payment ecosystems, such as PayPal (1998), Payoneer (2005), Skrill (2001), Stripe (2009), TransferWise (2010), etc., virtual money in the form of virtual currencies, Quick Response codes, and the introduction of digital currencies of central banks. The suggested periodization of the evolution of electronic payment instruments is based on historical facts, economic conditions, the introduction of the latest financial technologies, national preferences and the legislation development in the field of payments. At the same time, the genesis specificity of the use of electronic payment instruments in Ukraine is conditioned by the imperfect special law on payment systems and the transfer of funds, which, unfortunately, does not meet the current international and European Union standards. Therefore, there is an urgent need to reform outdated domestic legislation in the field of payments by adopting a new Law of Ukraine «On Payment Services».