The Impact of Digital Payments on the Financial Services Industry

Abstract

Against the backdrop of the rise of digital payments, more and more people are choosing to use virtual currencies for their transactions. Thus, in this paper, the reasons for the global rise of digital currencies, the characteristics of digital payments, and the possible global impact are presented, and the possible risks and challenges of digital payments are analyzed, as well as how to protect customers' privacy and data and how to improve payment methods based on users' experiences. The focus of this paper is on discussing the impact that digital payments will have on the financial industry, comparing and analyzing the advantages and disadvantages, and exploring the indirect or direct impact it will have on financial services and money. Furthermore, it analyzes the habits of consumers using digital payments and whether digital payments will quietly change their habits.