Modelling cybersecurity impacts on digital payment adoption: A game theoretic approach

Abstract

The pervasive adoption of digital payment systems globally is a crucial development, shaping the financial landscapes of diverse nations. However, this surge in adoption has precipitated a concerning rise in cybercrimes. This prompts users to reassess preferred payment modes and occasionally leads to a shift back to traditional cash transactions. Given the central role of digital payments in steering the digital economy’s growth and their profound impact on a country’s gross domestic product, the imperative to augment the number of digital payment users becomes increasingly compelling. In response to this imperative, this article introduces a game theoretical model to comprehend how digital payment service providers can ensure optimal security for their services and systems. The objective extends beyond merely addressing the escalating threat of cybercrime; it also seeks to cultivate a pervasive sense of safety among users. Simultaneously, it endeavours to dissuade cybercriminals from investing efforts in exploiting the robust security measures implemented by digital payment service providers. To validate the efficacy of our model, we employed a strategic approach. We have formulated four research questions using the problematization technique and leveraging a thorough examination of the existing literature. Subsequently, we systematically map the findings of our model, ensuring a nuanced alignment with the existing academic discourse. The article aims to have a widespread and significant impact by enhancing security and fundamentally influencing the trajectory of digital payment adoption, thereby contributing to the development of the digital economy.