P2P Payments Research Articles

Beyond Just Money Transactions: How Digital P2P Payments (Re)shape Existing Offline Interpersonal Relationships

Money is a sensitive and complex component of everyday life, which can significantly affect people's relationships with each other. Recently, emerging digital peer-to-peer (P2P) payment applications continue to complicate how people deal with money with individuals they know in comparison to traditional payment methods such as physical money (i.e., cash). Through an online survey study (N=218), in this paper, we investigate significant differences between using digital P2P payments and traditional payment methods (i.e., physical money) in terms of perceptions of transactions by using a given payment method, perceptions of people's existing interpersonal relationships with their known contacts after such transactions, and future use intention of a given payment method. We thus offer empirical evidence to highlight multidimensional influences of using digital P2P payments on established offline interpersonal relationships compared to using traditional payment methods (i.e., physical money). We also provide crucial new insights to unpack digital P2P payments as a novel technology-mediated interpersonal dynamic in people's everyday lives, which goes beyond merely as a business payment model or a financial service. We additionally provide important directions for designing more supportive and socially satisfactory digital P2P payment platforms in the future by taking the interplay of financial exchanges and interpersonal relationships into consideration.

Examining user behavior with machine learning for effective mobile peer-to-peer payment adoption

Disruptive innovations caused by FinTech (i.e., technology-assisted customized financial services) have brought digital peer-to-peer (P2P) payments to the fore. In this challenging environment and based on theories about customer behavior in response to technological innovations, this paper identifies the drivers of consumer adoption of mobile P2P payments and develops a machine learning model to predict the use of this thriving payment option. To do so, we use a unique data set with information from 701 participants (observations) who completed a questionnaire about the adoption of Bizum, a leading mobile P2P platform worldwide. The respondent profile was the average Spanish citizen within the framework of European culture and lifestyle. We document (in this order of priority) the usefulness of mobile P2P payments, influence of peers and other social groups such as friends, family, and colleagues on individual behavior (that is, subjective norms), perceived trust, and enjoyment of the user experience within the digital context and how those attributes better classify (potential) users of mobile P2P payments. We also find that nonparametric approaches based on machine learning algorithms outperform traditional parametric methods. Finally, our results show that feature selection based on random forest, such as the Boruta procedure, as a preprocessing technique substantially increases prediction performance while reducing noise, redundancy of the resulting model, and computational costs. The main limitation of this research is that it only has a place within the sociocultural and institutional framework of the Spanish population. It is therefore desirable to replicate this study by surveying people from other countries to analyze the effects of the institutional environment on the adoption of mobile P2P payments.

Exploring the determinants of the user experience in P2P payment systems in Spain: a text mining approach

PurposeThis study aims to identify which determinants are responsible for impacting the user experience of three peer-to-peer (P2P) payment services in the Spanish market.Design/methodology/approachA sample of all online reviews (n = 16,048) published in Google Play of three paytech apps—Bizum, Twyp, and Verse—was analyzed using text mining and sentiment analysis.FindingsA holistic interpretation of the seed terms included in each aspect allowed to label them based on the preferences expressed by paytech app users in their reviews. Six latent aspects were identified: ease of use, usefulness, perceived value, performance expectancy, perceived quality, and user experience. In addition, the results of the analysis suggest a positivity bias in the online reviews of fintech P2P app users. Our results also show that online reviews of apps associated with banks or financial institutions, such as Bizum (to a greater extent) or Twyp, show more negative emotions, whereas independent apps (Verse) show more positive emotions. Moreover, the most critical users are those of unidentified gender, while women remain in a more neutral position, and men tend to express their opinions more positively regarding P2P payment apps.Practical implicationsPaytech providers should analyze the problems faced by users immediately after an encounter. By applying text mining analysis, service providers can gain efficiency in understanding user sentiments and emotions without tedious and time-consuming reviews.Originality/valueThis is a pioneering study on peer-to-peer (P2P) mobile payment systems from the user’s perspective because it investigates the emotions and sentiments that users convey through bank reviews.

It Takes a Thief…. and a Bank: Protecting Consumers from Fraud and Scams on P2P Payment Platforms

This Article proposes statutory and regulatory changes to the Electronic Fund Transfer Act; Regulation E; and the Bank Secrecy Act/Anti-Money Laundering regulations to protect consumers who use instant payment platforms in the United States (such as Zelle and Venmo) from scam artists and fraudsters. After discussing current fraud scams on these payment platforms, the Article discusses the history and context of the 1978 Electronic Fund Transfer Act and Regulation E, and the definition of unauthorized payments and payments made in error therein. The second part of this Article explores changes to the Bank Secrecy Act/Anti-Money Laundering regulations that might make it hard for fraudsters to use the financial system to commit fraud, and might make it easier for financial institutions to identify fraudsters seeking to do so. Finally, this Article provides an update on regulatory, legislative, and judicial activity that took place while this Article was in the process of being published.

Does Attenuating Endowment Effect Improve Efficiency? An Overview of Applications

This article explores the impact of the endowment effect on market efficiency, with a specific focus on attenuating this effect to improve overall efficiency. The analysis is grounded in a classical three-dimensional theoretical framework encompassing willingness to pay (WTP), willingness to accept (WTA), and loss aversion. The article discusses strategies to narrow the gap between WTA and WTP and reduce loss aversion as means to mitigate the endowment effect and enhance market efficiency. Drawing on literature reviews and case studies, the paper examines three applications of the endowment effect in the context of P2P payment, organizational co-determination, and the U.S. drinking water supply. The findings suggest that attenuating the endowment effect has the potential to improve efficiency, foster cooperation, and provide practical methods for enhancing market outcomes. To improve the future study, this paper provides insight to mitigate the endowment effect by combining closing the WTA-WTP discrepancy and reducing the loss aversion, introducing proxy variables based on specific contexts for empirical study.

Psychographic and demographic segmentation and customer profiling in mobile fintech services

PurposeThis research aims to comprehend the factors that impact the emerging inclination of consumers toward mobile finance technology (fintech) services over banking institutions. The study focuses on users' demographics and psychographics to delineate their unique segments and profiles.Design/methodology/approachThe study proposes a segmentation and profiling framework that includes variance analysis, two-step cluster analysis and pairwise statistical tests. This framework is applied to a dataset of customers using a range of mobile fintech services, specifically robo-investment, peer-to-peer (P2P) payments, robo-advisory and digital savings. The analysis creates distinct customer profile clusters, which are later validated using pairwise statistical tests based on segmentation output.FindingsEmpirical results reveal that P2P payment service users exhibit a higher frequency of usage, proficiency and intention to continue using the service compared to users of robo-investment or digital savings platforms. In contrast, individuals utilizing robo-advisory services are identified to have a significantly greater familiarity and intention to sustain engagement with the service compared to digital savings users.Practical implicationsThe findings provide financial institutions, especially traditional banks with actionable insights into their customer base. This information enables them to identify specific customer needs and preferences, thereby allowing them to tailor products and services accordingly. Ultimately, this understanding may strategically position traditional banks to maintain competitiveness amidst the increasing prominence of fintech enterprises.Originality/valueThis research provides an in-depth examination of customer segments and profiles within the mobile fintech services sphere, thus giving a nuanced understanding of customer behavior and preferences and generating practical recommendations for banks and other financial institutions. This study thereby sets the stage for further research and paves the way for developing personalized products and services in the evolving fintech landscape.

Changes in US payment behaviour during COVID-19: Differences by income and demographics

The COVID-19 pandemic caused large changes in consumer spending, including how people make their payments. For employed consumers, the pandemic also changed workplace behaviour, with about one-third of workers continuing to work from home every day as of September 2020. Using data from a nationally representative survey of US consumers collected before and during the pandemic, this paper analyses changes in workplace and payment behaviour during the pandemic. The study finds that, compared with their payment behaviour in 2019, consumers had shifted some of their purchases from in person to online by the autumn of 2020, significantly reduced their use of cash for purchases, and shifted their person-toperson (P2P) payments away from paper-based instruments (ie cash and cheques). These changes are consistent with what we might expect, as many people were less able or willing to shop in person. The adoption of electronic P2P payments increased, especially the use of payment apps such as PayPal, Venmo and Zelle. In comparison with consumers who worked at least partly in person, consumers who worked exclusively from home during the pandemic made a significantly higher proportion of their payments online or through mobile devices, and were less likely to use cash at all, even after controlling for income and education levels. In contrast, payment behaviour changes that took place from 2018 to 2019 were smaller in magnitude and largely insignificant, suggesting that COVID-19 likely accelerated any longerterm trends.

What drives consumers to use P2P payment systems? An analytical approach based on the stimulus–organism–response (S-O-R) model

PurposeTraditional payment systems based on cash and bank cards are being replaced by new innovative formats. This research analyzes the success factors in the adoption by customers of Bizum, a peer-to-peer (P2P) mobile payment system widely used in Spain. This study proposes a theoretical framework based on the Stimulus–Organism–Response (S-O-R) model and includes the analysis of the moderating effect of perceived risk and the mediating effect of perceived trust.Design/methodology/approachTo achieve the proposed objectives, an online questionnaire was administered to 701 Spanish smartphone users, potential users of the proposed P2P payment systems.FindingsThe results show that perceived usefulness is the most important predictor of intention to use. Additionally, a medium predictive relevance performance of the proposed model is found.Originality/valueThis research contributes to a more holistic understanding of the adoption of P2P payment systems and provides new business opportunities that companies can exploit through the use of this technology.

A Sustainable Approach to Delivering Programmable Peer-to-Peer Offline Payments.

Payment apps and digital wallets are powerful tools used to exchange e-money via the internet. However, with the progressive disappearance of cash, there is a need for the digital equivalent of physical banknotes to guarantee the same level of anonymity of private payments. Few efforts to solve the double-spending problem exist in P2P payments (i.e., in avoiding the possibility of a payer retaining copies of digital coins in absence of a trusted third party (TTP)), and further research efforts are needed to explore options to preserve the privacy of payments, as per the mandates of numerous central bank digital currency (CBDC) exploratory initiatives, such as the digital euro. Moreover, generic programmability requirements and energetic impacts should be considered. In this paper, we present a sustainable offline P2P payment scheme to face the double-spending problem by means of a one-time program (OTP) approach. The approach consists of wiping the business logic out of a client's app and allowing financial intermediaries to inject a certified payment code into the user's device, which will execute (asynchronously and offline) at the time of payment. To do so, we wrap each coin in a program at the time of withdrawal. Then the program exploits the trusted execution environment (TEE) of modern smartphones to transfer itself from the payer to the payee via a direct IoT link. To confirm the validity of the approach, we performed qualitative and quantitative evaluations, specifically focusing on the energetic sustainability of the proposed scheme. Results show that our payment scheme is energetically sustainable as the current absorbed for sending one coin is, at most, ~1.8 mAh on an Apple smartphone. We advance the state-of-the-art because the scheme meets the programmability, anonymity, and sustainability requirements (at the same time).

ВПЛИВ ІНОВАЦІЙНИХ БАНКІВСЬКИХ ТЕХНОЛОГІЙ НА УДОСКОНАЛЕННЯ ОБСЛУГОВУВАННЯ КОРПОРАТИВНИХ КЛІЄНТІВ

In the changing conditions of life, it is very important to monitor the main trends in the development of banks. This contributes to the competent assessment of the activity of the banking system in the competitive market and the improvement of the quality of customer service, both retail and corporate. Constantly improving service delivery platforms reflect the result of hard work of specialists, increase the profitability of the banking sector and allow to maximize profits. The article deals with the implementation of financial innovations in the service of corporate clients by Ukrainian banks. It is emphasized that the catalyst for the development of digitization in banks was the quarantine conditions of 2020. The global trends in the development of innovations in banking practice have been studied. The best innovations in products and services for corporate clients are characterized. It was revealed that the main global banking innovations are: opening a digital account; application programming interfaces; video collaboration; p2p payments, cloud computing, chatbots, machine learning, digital lending systems. They ensure close communication between the bank and the client, quick receipt of products and services by clients, protection of bank data, and reduction of risks. Signs of attractiveness of new banking products are high reliability, profitability and quality, as well as profit from the introduction of modern financial technologies. The result of cooperation with fintech startups is new products and services or products and services with new qualities: innovative programs and projects; new intelligent products; modern new technological equipment and processes; new approaches to market formation of modern banking products and services. Particular attention is paid to ensuring the equality of the participants in the relationship (banks and clients) and the openness of the necessary information for them; provided own systematization of clients from the point of view of readiness for innovations and a list of the main innovative changes taking place in the banks’ service to corporate clients.

When Payments Go Social: The Use of Person-to-Person Payment Methods Attenuates the Endowment Effect

The authors examine how person-to-person (P2P) payment methods affect consumers’ participative pricing decisions. Participative pricing occurs when people choose how much to pay for a good or how much they will sell it for. This pricing mechanism is increasingly common, for example, on platforms like Craigslist, eBay, or Etsy. A successful transaction requires that consumers converge on a mutually acceptable price, yet decades of research on the endowment effect show that sellers often demand more for goods than buyers are willing to pay. The authors propose that compared with traditional payment methods, when consumers use P2P payments they make somewhat more cooperative pricing decisions: buyers are willing to pay a bit more and sellers are willing to accept a bit less. This attenuates the endowment effect and increases the odds of a successful trade. This occurs because even when the trade is with a stranger, P2P payments can subtly activate a social transaction context, cuing the social transaction pricing norm of making more cooperative pricing offers. The authors test these proposals in eight studies using consequential and hypothetical choices, moderation, and mediated moderation. A simulation indicates that compared with traditional payment methods, the use of P2P payments can increase successful transactions in a marketplace by nearly 10%.

Continuance intentions to use FinTech peer-to-peer payments apps in India

PurposeThe purpose of the present study is to identify the determinants of continuance intentions to use FinTech peer-to-peer (P2P) payment apps in India. DesignA cross-sectional survey of 463 FinTech users was carried out during the pandemic with the help of a digital questionnaire. The study has empirically tested an extended expectancy confirmation model and theory of acceptance to examine the determinants of continuance intentions to use FinTech P2P payment apps. FindingsWe demonstrate that confirmation of prior expectations and post-adoption perceived usefulness determine continuance intention to use FinTech payment services. Cognitive acceptance (trust) and normative acceptance (social influence) not only determine behavioural acceptance (willingness to co-create) but also influences continuance intentions. Confirmation of initial expectations during service use determines satisfaction and post-purchase perceived usefulness. Practical implicationsThe continuous use of FinTech P2P services can be ensured by fulfilling users' post-purchase expected benefits, fostering trust, and social influence. These can be achieved by gearing up internal resources to provide customized experiences that meet customers’ expectations and facilitate fruitful interactions. Only if the mobile experience is accessible and meets the expectations of customers, they would appreciate its performance and value in the offerings leading to extensive use of FinTech P2P services. Originality/valueThe present paper is based on extended ECM and the theory of acceptance that aim to explain continuance intention to use FinTech P2P payments. The study findings add to the limited body of research in the context of FinTech P2P payments.

SUPERVISORY CAPACITY OF FINANCIAL INSTITUTIONS IN COUNTERING CYBERCRIME AND INFORMATION ASYMMETRIES IN THE CONDITIONS OF THE GROWTH OF THE ROLE OF FINTECH AND BIG TECHS IN THE DIGITALIZED INTERNATIONAL CAPITAL MARKETS

The request for digital sovereignty within national jurisdictions or at the level of integration associations in the context of the expansion of cyberspace and the opportunities and threats it produces should correspond with the potential of the existing digital financial infrastructure, which is global in nature, which gives FINTECH and BIG TECH tools for transformative construction of the financial market. services. The purpose of the article is to reveal the supervisory potential of financial institutions in countering digital crime and information asymmetries in the context of the growing role of FINTECH and BIG TECHS in international capital markets. The article explores the role of FINTECH and BIGTECH as a dynamically developing segment at the intersection of the financial services and technology sectors. In it, technology startups and new market entrants are taking innovative approaches to products and services currently provided by the traditional financial services sector. Today, new technologies (digital, telecommunications, biometrics, etc.) are reshaping the financial services industry, actively replacing traditional players and traditional business models. The integration of new financial solutions allows you to change the structure of consumption, reduce the cost of certain functionality (processing customer bases, loyalty programs, etc.), increase the efficiency and quality of business processes (targeting the target audience, scoring, etc.), and also significantly affect sustainability development of core business, etc. As a result, the financial technology industry is gradually turning into an independent, intensively developing sector of the modern economy. The FINTECH segment is rapidly developing, disrupting the usual order of things in the traditional value chain. Companies in the segment, using the latest technologies and new directions of activity, are reshaping the competitive landscape, blurring the boundaries that have been established among players in the financial services sector. The FINTECH ecosystem includes such elements as startups, technology companies, financial institutions and infrastructure players. FINTECH platforms operate in the most profitable part of the banking chain. Most companies in the financial technology sector operate at the so-called last mile stage, that is, at the stage of interaction with the end consumer. These services include: P2P lending platforms, money transfer and payment acceptance services for small and medium enterprises. It is these areas that are the main sources of income for traditional banks. The very financing of the FINTECH industry is often of a credit nature, and cheap borrowed resources only increased interest in such innovations. of great importance for the fintech industry is the dynamically developing e-commerce market. In particular, this factor will stimulate the growth of the volume of services in the segment of payments and transfers, as well as in the segment of financing. The article considers the phenomenon of gamification (the use of game elements), which is essentially a system of motivation and incentives, which leads to the fact that the client interacts with the financial institution more often, which makes it possible to achieve increased loyalty to the company. In the era of total digitalization, the problem of cybersecurity, protection of personal data, identification and authentication of a person in the information space when making financial transactions becomes relevant. The attention is focused on the risks of cyberattacks and theft of funds due to the disclosure of access to information systems.

How people pay each other: Data, theory, and calibrations

Using a representative sample of the U.S. adult population, we analyze which payment methods consumers use to pay other consumers (p2p) and how these choices depend on transaction and demographic characteristics. We construct a random matching model of consumers with diverse preferences over the use of payment methods for p2p payments. The model is calibrated to the share of p2p payments made with cash, checks, and electronic technologies from 2015 to 2019. We find about two-thirds of consumers have a first p2p payment preference for cash. One-third rank checks first. Approximately 94 percent of consumers rank electronic technologies second.

The Interplay of Financial Exchanges and Offline Interpersonal Relationships through Digital Peer-to-Peer Payments

Financial transactions play a critical role in people’s interpersonal relationships since money is a sensitive and complex component of everyday life. In particular, emerging digital peer-to-peer (P2P) payment applications further complicate how people deal with each other regarding money. Yet, there is a lack of empirical evidence on how and why such technology may lead to new and more complex influences on people’s offline interpersonal relationships. Using 23 in-depth interviews, this paper explores the influences of using digital P2P payments on people’s experiences of interpersonal financial exchanges and their offline interpersonal relationships. Our findings show that using digital P2P payments helps reduce awkwardness and ensure a stronger sense of fairness in financial exchanges. In addition, though digital P2P payments can relieve tension and reduce distrust in users’ interpersonal relationships, they also result in loss of emotion and increase peer pressure. We extend existing studies on computer-mediated interpersonal relationships by highlighting the important role of the complicated technology-mediated financial exchanges in perceiving, shaping, and approaching today’s offline interpersonal relationships. We also propose potential design implications for designers and developers to take such an interplay of financial exchanges and interpersonal relationships into consideration to design more supportive and socially satisfactory digital P2P payment platforms in the future.

How People Pay Each Other: Data, Theory, and Calibrations

Using a representative sample of the U.S. adult population, we analyze which payment methods consumers use to pay other consumers (p2p) and how these choices depend on transaction and demographic characteristics. We additionally construct a random matching model of consumers with diverse preferences over the use of different payment methods for p2p payments. The random matching model is calibrated to the share of p2p payments made with cash, paper check, and electronic technologies observed from 2015 to 2019. We find about two thirds of consumers have a first p2p payment preference of cash. The remaining one third rank checks first. Approximately 93 percent of consumers rank electronic technologies second. Our empirical analysis finds that the most significant factors in determining the payment method used are the transaction value and the age and education of the payer.

Understanding the Determinants of Wearable Payment Adoption: An Empirical Study

Aim/Purpose: The aim of this study is to determine the variables which affect the intention to use Near Field Communication (NFC)-enabled smart wearables (e.g., smartwatches, rings, wristbands) payments. Background: Despite the enormous potential of wearable payments, studies investigating the adoption of this technology are scarce. Methodology: This study extends the Technology Acceptance Model (TAM) with four additional variables (Perceived Security, Trust, Perceived Cost, and Attractiveness of Alternatives) to investigate behavioral intentions to adopt wearable payments. The moderating role of gender was also examined. Data collected from 311 Kuwaiti respondents were analyzed using Structural Equation Modeling (SEM) and multi-group analysis (MGA). Contribution: The research model provided in this study may be useful for academics and scholars conducting further research into m-payments adoption, specifically in the case of wearable payments where studies are scarce and still in the nascent stage; hence, addressing the gap in existing literature. Further, this study is the first to have specifically investigated wearable payments in the State of Kuwait; therefore, enriching Kuwaiti context literature. Findings: This study empirically demonstrated that behavioral intention to adopt wearable payments is mainly predicted by attractiveness of alternatives, perceived usefulness, perceived ease of use, perceived security and trust, while the role of perceived cost was found to be insignificant. Recommendations for Practitioners: This study draws attention to the importance of cognitive factors, such as perceived usefulness and ease of use, in inducing users’ behavioral intention to adopt wearable payments. As such, in the case of perceived usefulness, smart wearable devices manufacturers and banks enhance the functionalities and features of these devices, expand on the financial services provided through them, and maintain the availability, performance, effectiveness, and efficiency of these tools. In relation to ease of use, smart wearable devices should be designed with an easy to use, high quality and customizable user interface. The findings of this study demonstrated the influence of trust and perceived security in motivating users to adopt wearable payments, Hence, banks are advised to focus on a relationship based on trust, especially during the early stages of acceptance and adoption of wearable payments. Recommendation for Researchers: The current study validated the role of attractiveness of alternatives, which was never examined in the context of wearable payments. This, in turn, provides a new dimension about a determinant factor considered by customers in predicting their behavioral intention to adopt wearable payments. Impact on Society: This study could be used in other countries to compare and verify the results. Additionally, the research model of this study could also be used to investigate other m-payments methods, such as m-wallets and P2P payments. Future Research: Future studies should investigate the proposed model in a cross-country and cross-cultural perspective with additional economic, environmental, and technological factors. Also, future research may conduct a longitudinal study to explain how temporal changes and usage experience affect users’ behavioral intentions to adopt wearable payments. Finally, while this study included both influencing factors and inhibiting factors, other factors such as social influence, perceived compatibility, personal innovativeness, mobility, and customization could be considered in future research.

Світова практика впровадження фінансових технологій у банківському секторі

The purpose of the article is to study the main trends and directions of spread of financial technologies in the banking sector of foreign countries. Analyzing the introduction and use of financial technologies among influential global markets, based on data from the financial consulting group EY Global Financial Services, which since 2015 began issuing of analytical reports every 2 years, the authors have determined an annual increase in the level of spread of these technologies in the studied countries. During 2015–2019. there was an increase in the number of countries under study – from 6 to 27, and in the number of respondents – from 10 to 27 thousand. An increase in consumer involvement in the use of new financial technologies is detected, as evidenced by the increase in the level of penetration of financial services – in 2015, the average penetration level comprises 16%, in 2017 – 33%, in 2019 – 64%. The carried out study showed that the largest share of the introduction and promotion of financial technologies among the 27 studied countries is occupied by the countries of Asia, South Africa and Latin America. As for European countries, FinTech is developing here at a slower pace compared to other countries. As for the United States, this country still has less activity in the spread of financial technologies. Analyzing the segments in which FinTech finance was most financed in 2019, upon the data provided by the consulting company EY Global Financial Services Markets, it is found that the world’s leading countries have the greatest advantage of financing in FinTech banking sector, among which the highest rate in China is 92%, and the smallest amounts of financing in FinTech are carried out in the insurance sector (compared to such sectors as banking and financial management). In Asian countries as digital technology leaders, the main area where the banking industry introduces financial technologies is blockchain with cryptocurrencies, payments and transfers, as well as investments and savings. Among the main directions of FinTech-directedness in the banking sector, the largest share in the United States is occupied by: market of capitals, blockchain with cryptocurrencies, further on payments and transfers. As for the UK, P2P payments and transfers, as well as software, occupy the leading place. Prospects for further research are to analyze the introduction of financial technologies in the activities of Ukrainian banking institutions.

FINTECH COMPANIES AND THEIR INTERACTION WITH BANKS: INTERNATIONAL AND RUSSIAN EXPERIENCE

The paper examines the features of interaction between FinTech companies and banks abroad and in Russia. The authors conclude that the development and transformation of a FinTech company into neo-banks is associated with an increase in financial services for companies, successful capital raising, cooperation with banks and the use of specialized platforms. It is emphasized that abroad there is active competition and cooperation between BigTech and FinTech companies, neo-banks and traditional banks; in Russia, in the context of the active digital transformation of Sberbank and other large banks, FinTech companies are active only in the P2P and P2G payment segments. The authors emphasize the importance of banking ecosystems that transform modern Russian banks into universal platforms that provide partners and clients with a variety of services. As a result, further intensification of competition between BigTech and FinTech companies, neo-banks, as well as banks that have undergone digital transformation, in the monetary sphere, both in national and international markets, should be expected.

THE OPPORTUNITIES AND BENEFITS OF OPEN BANKING IMPLEMENTATION

The technological innovations help improve and develop online payments, including digital wallets, P2P payments, and e-commerce payments through existing e-banking infrastructure. Privacy issues prevent data owners to share them outside their institutions for fear of fraud and abuse. Open banking can help maximize customer benefits through data sharing and deeper collaboration between financial institutions. All companies providing payment services in the European Economic Area must comply with the PSD2 account access requirements. PD2 regulates that third-party PSPs have the right to access a payment account held with banks to provide account information services and / or payment initiation services. To do this, banks must provide a secure and open interface for third-party payment systems for account access, reporting and payment initiation. In light of the update of the European Commission's Payment Services Directive, which aims to improve competition and boost economic activity by facilitating and encouraging bank account holders to send their account data in a controlled and secure manner, there is a problem with customers' lack of awareness, benefits and security. Time of operations on the principles of open banking. This study is devoted to the study of the concept of Open Banking, its economic nature, prerequisites, opportunities and risks of implementation as a new way to use payment services, introduced by the directive. The research contributes to the development of open banking technology and solves the problem raised in the work - the trust of customers in it, which determines the success of its implementation and development of such a business model.