Payment facilitators’ effects on the digital economy

Abstract

Trade and commerce are the straightforward process of exchanging products, services and worth. While electronic trade or digital economy is identical in essence, the process of exchanging goods and services is made simpler as the medium changes. The digital economy is a platform where people, machines, algorithms and organisations (like corporations) continue to interact with one another in an infinite assortment of options to exchange goods, services, ideas, information and products via the internet, which provides communication options. Because of the increase in connection speed and the adoption of technology, many people were able to participate in the digital economy. The digital economy provides significant quantities of goods and services that people would not be capable of producing without machine and software support. To keep pace with the digital age, money and value transfers must also be digital. Payment systems, which are one of the first technologies to adopt new technologies, have always been very close to digital adoption. Therefore, technology is critical to its continuous development to provide better, safer and faster services ever since the emergence of the first payment cards. Payment facilitators (PayFacs) have played an important role in the inclusion of larger audiences, emerging from the technological infrastructure that had been created by banks and card schemes, the actors that have long invested in this field.