Remote Payment Research Articles

ANALYSIS OF THE USE OF ARTIFICIAL INTELLIGENCE IN THE DIGITAL FINANCIAL ENVIRONMENT IN UKRAINE

The significance of the research is determined by the fact that the use of AI in the digital financial environment of Ukraine opens numerous opportunities for improving its efficiency, security, accessibility, and innovation. Therefore, this article is devoted to the analysis of the specifics of using artificial intelligence in the digital financial environment in Ukraine. Within the research, it has been proven that artificial intelligence is actively being implemented and adapted to the needs of various areas of the digital financial environment through specific transformations. It has been concluded that among the transformations driven by the use of artificial intelligence in the digital financial environment in Ukraine, we can distinguish the growing popularity of remote payments, the expansion of open banking usage, the development of digital identification, the advancement in financial data analysis, fraud detection, process automation, and the provision of personalized financial advice, the increase in the number of fintech companies working with AI, the heightened focus on cybersecurity, and the active regulation of the digital financial environment.

The impact of regulation on retail payments security: Evidence from Italian supervisory data

This paper assesses the impact of the new strong customer authentication (SCA) requirements introduced by the revised Payment Services Directive (PSD2) on the security of remote payments in Italy. We find that the regulation was effective in improving remote payments security, saving consumers several million euros in terms of less fraud on online transactions. Using a model for panel data, we estimate that SCA reduces the risk of fraud by 60 percent for remote payments made by card and by 80 percent for e-money payments. We also find that the transactions for which the regulation provides an exemption from SCA requirements are relatively safe.

Цифровой рубль Банка России как новая форма национальной валюты

Introduction: in recent years, significant changes have taken place in Russian and international law in the sphere of monetary circulation, primarily due to the rapid pace of global digitalization of the economy, where the development and implementation of national digital currency is one of the priorities in the development of information and payment technologies in many countries. Being a new form of the Russian national currency which will be issued digitally and whose stability of functioning and circulation will be provided by the state represented by the Central Bank of the Russian Federation, the digital ruble will fully perform all the functions of money in civil circulation. As a new and alternative method of making payments, it will combine the properties of cash and noncash funds: it will have the form of identification in the form of a unique digital code like cash issued in the form of banknotes with a unique number, and also will not have a physically tangible form and provide opportunities for remote payments and settlements like non-cash monetary funds. The purpose of the study is a comprehensive study of the essence of the digital ruble as a new form of the national currency, as well as the consideration of certain legal aspects of the introduction of the digital ruble into the national payment system of the Russian Federation, necessary for its successful integration into the sphere of monetary circulation without disrupting the stability of the financial system. Methods: the universal method (dialectical materialism); the general scientific methods (logical (induction, deduction, analysis and synthesis), systemic and functional); private legal methods (formal legal, comparative legal). Results: the paper discusses and resolves the contradictions in approaches to the definition of concepts used by the legislator in the legal regulation of the digital space. It is noted that before the introduction of the digital ruble into circulation, it must first be fixed in the regulatory legal acts of the Russian Federation. In this regard, the legislative framework has been identified, which needs to be reworked in order to make changes necessary for the legitimization of the national currency in digital form into the national payment system, in particular, for a clear correlation of the digital ruble with already existing legally fixed financial instruments. Conclusions: as a result of the study, the trends have been identified that have determined the need and expediency of integrating the digital ruble into the Russian legal field. It is proved that the concept of the digital ruble as an innovative phenomenon in the system of transformation of monetary circulation at the moment only establishes the ideological mechanisms of its functioning, while the uncertain nature of the digital form of the national currency of the Russian Federation requires careful full-scale study from a legal point of view. The inexpediency and invalidity of the attempt to identify the digital ruble with such payment instruments as non-cash funds and electronic money, as well as with such a specific financial instrument as cryptocurrency, has been proved. The author focuses on the fact that despite the existence of features common with electronic money, the digital ruble by its nature is a legal phenomenon different from it. In conclusion, the foreign experience of the process of creating and implementing the digital currency of the central banks of China and the United States is analyzed.

DIGITIZATION IN THE CUSTOMS RISK MANAGEMENT

Ukraine's customs goal is to create a smart custom that will fully identify its automaticity. Automation of customs procedures is an ongoing process due to the constant development of innovative technologies, the implementation of which requires a strategy of targeted development, overcoming existing problems and eliminating inaccuracies, helping to optimize customs activities in the context of European experience. The main aspects of the IT strategy for the development of Ukrainian customs are systematized, which should be optimized to international standards and ensure fast, high quality and transparent activities. It is proposed to introduce customs cards in Ukraine as one of the innovative ways to develop the customs sphere and ensure economic relations between these spheres. Special attention in customs automation should be paid to information security, as along with the development of digital technologies, digital forensics is actively advancing and the level of Internet danger is growing. The use of modern technologies has the advantage of saving time, and also allows you to compare the possibilities of electronic document management, declaration and remote payment of necessary customs duties.

Some Implications of the Development of E-Commerce on EU Tax Regulations

E-commerce has progressed within Europe before, on the basis of the pre-pandemic raise, with COVID-19 determining an explosion of its evolution. The European e-commerce market is very important, linking together more than 500 million consumers. This paper presents the results of assessing the guidelines and trends observed in the European regulatory process in the current period, when e-commerce is developing appreciably, studying the applicable legal norms and their effects on facilitating the control of remote payments. Compliance with the VAT (value-added tax) regime is addressed in the context described by the two important categories of active legal rules: the rules for consumer protection and the rules related to ensuring data protection. The investigation of the legal framework in this regard started from the presupposition that the necessary changes in regulation for facilitating e-commerce are capable to determine indirect changes in many aspects of financial rules and taxation. While analyzing the regulation of online trade, the various measures undertaken recently in respect to European sources of law and their implications for national legal framework opened additional directions of investigation. This paper points out the indirect effect of e-commerce development on the regulatory framework, both in the area of consumer protection and in line with the difficult balance between the right to information and protection of data. The fiscal effects of e-commerce payments and the challenges for the value-added tax regime are also addressed, both from a theoretical point of view and with input from the Court of Justice of the European Union’s jurisprudence. The analyzed documents show that, in this respect, the legal reform will go deeper and will continue with the rhythm of the development of the online activities.

The essence and functions of cryptocurrencies

With the development of electronic systems, ideas have repeatedly arisen to create an electronic analogue of cash for remote payment. Cryptocurrency technology was originally aimed at the absence of a trusted node - one whose actions are guaranteed to be true and who can confirm the correctness of other people's operations. For the first time, this problem was solved in the Bitcoin system due to the artificial complication of making changes to the transaction history register.

Эволюция технологий таможенной логистики на евразийском экономическом пространстве

A retrospective study of the evolution of customs logistics technologies in the Eurasian economic space is carried out, taking into account the stages of development of integration processes. The specific composition and features of the application of special simplifications and logistics technologies for customs declaration of goods in the single customs territory of the Eurasian Economic Union are determined. The innovations of the institute of authorized economic operators in the Eurasian Economic Union are studied, their subject composition is characterized and the peculiarities of performing logistics operations in international supply chains are considered. Promising directions for the development of customs logistics technologies are being established, taking into account the digitalization of customs operations, the organization of customs control, and the transformation of the institute of authorized economic operators. The logistics technologies of customs declaration are identified (preliminary informing, preliminary customs declaration of goods, submission of an incomplete customs declaration, periodic customs declaration, release of goods before filing a customs declaration, temporary periodic customs declaration of goods, declaration of goods in unassembled or disassembled form, “remote release”, “dry port”, “remote payment of customs payments”). The technologies of customs logistics are highlighted, which can be used only by authorized economic operators-participants in foreign economic activity and / or logistics operators that meet the requirements for inclusion in the Register of Authorized Economic Operators. It is concluded that in the process of the evolutionary development of customs logistics in the Eurasian economic space, a new institute of logistics intermediaries is being formed.

Enhancing Privacy in PUF-Cash through Multiple Trusted Third Parties and Reinforcement Learning

Electronic cash ( e-Cash ) is a digital alternative to physical currency such as coins and bank notes. Suitably constructed, e-Cash has the ability to offer an anonymous offline experience much akin to cash, and in direct contrast to traditional forms of payment such as credit and debit cards. Implementing security and privacy within e-Cash, i.e., preserving user anonymity while preventing counterfeiting, fraud, and double spending, is a non-trivial challenge. In this article, we propose major improvements to an e-Cash protocol, termed PUF-Cash, based on physical unclonable functions ( PUFs ). PUF-Cash was created as an offline-first, secure e-Cash scheme that preserved user anonymity in payments. In addition, PUF-Cash supports remote payments; an improvement over traditional currency. In this work, a novel multi-trusted-third-party exchange scheme is introduced, which is responsible for “blinding” Alice’s e-Cash tokens; a feature at the heart of preserving her anonymity. The exchange operations are governed by machine learning techniques which are uniquely applied to optimize user privacy, while remaining resistant to identity-revealing attacks by adversaries and trusted authorities. Federation of the single trusted third party into multiple entities distributes the workload, thereby improving performance and resiliency within the e-Cash system architecture. Experimental results indicate that improvements to PUF-Cash enhance user privacy and scalability.

Security and Privacy Based NFC Wallet Design

With the Covid-19 pandemic, contactless and remote payment options have started to be used more widely. NFC technology is also used for contactless payment. In this study, it is aimed to create a payment system using NFC. The design of the payment system used a portable NFC, an Android phone with version 4.4 or higher, an NFC card, Firebase database from Google, and tokenization. We can define tokenization as generating a random string of text with your credit card number. First of all, the developed application must be downloaded and installed on the phone. With this application, the phone will act as a POS machine. Users can use the phone as a POS and make transactions using it. In this system, only a random text string will be visible in an unauthorized access to the database. In this way, security and confidentiality are provided in the system.

Legal constants and the ‘constant’ outside of the law: Mobile payments in comparative perspective under European Union law

This article aims to determine whether mobile payments can be characterized by a legal constant, or common legal meaning. Indeed, mobile payments are a new form of payment system that is shaping the new economy of financial markets. Generally, they are part of the Fintech phenomenon, and they are specifically regulated in Europe, inter alia, under the Payment System Directive and the Regulation on Multilateral Interchange Fees. Nonetheless, those secondary hard law acts do not include any compulsory legal definition for mobile payments, which remain undefined and conventionally identified as means of proximity or remote payments. With that in mind, the article introduces for the first time in comparative law a new concept that aims at discovering meanings rather than similarities and differences that are irremediably limited to a merely descriptive function. To this end, the article argues that each time the constant outside of the law is subsequently recognized as ‘legal’, it becomes a legal constant, which is in turn capable of effectively revolutionizing the same study of mobile payments as well as of comparative law tout court.

КЛЮЧОВІ АСПЕКТИ ІНТЕРНЕТ-СТРАХУВАННЯ

In the conditions of virtualization of economic relations, the subjects of the insurance market can not stay away from these processes, so in order to improve the quality and level of availability of insurance services it is necessary to spread internet technologies in insurance. The main incentive for the introduction of Internet services by insurance companies is the need to reduce costs, expanding the geography of activities, ensuring diversification of risks. No less important factors are simplicity and comfort of on-line purchase of insurance product. The Ukrainian insurance market is at the stage of development and formation, having a number of problems and uncertainties. Therefore, its further information and technological development should receive priority in the economic and social aspects of government policy, taking into account its European integration guidelines. The article deals with the concept of Internet insurance. It is established that the approaches of scientists to the disclosure of the content of the concept of "Internet insurance" have differences. However, they converge on the definition of the Internet insurance as a process of interaction between the insurance representative and the insurer, connected with the provision of insurance services by the insurer, their service, performance of insurance payments in case of occurrence of an insured event due to the use of Internet technologies. The main advantages and disadvantages of online insurance are presented. The list of main advantages includes: simplification of the insurance process, efficiency of registration, simplicity and universality of payment methods, minimization of "human" factor, automation of calculation of the sum insured and tariffs with the help of insurance multicalculator. The list of main drawbacks includes: a much smaller number of insurance products are placed on the Internet sites of insurance companies for sale, the need for the client to understand the nuances and subtleties of working with the site of the insurer, set certain options for insurance amounts, which the client can not change. The stages of obtaining the insurance service through the Internet system have been considered, the offer of services by insurance companies of Ukraine "in live" and "on-line" and innovations on the Internet insurance market of Ukraine have been analyzed, the main spectrum of Internet services providing insurance companies in the Internet has been investigated, the number of insurance companies for the last years has been considered in dynamics. For the further development of Internet insurance it is necessary to improve the legal framework on this issue; it is necessary that the sites of insurance companies contain sufficient information content and for the customers a number of opportunities: obtaining true information about the activities of the insurance company and its services; calculation of the cost of the insurance policy with the help of online calculator; filling in an application for insurance; in case of an insured event, the implementation of remote payment of the insurance policy and insurance payments; delivery of the insurance policy to the customers; and delivery of the insurance policy to the customers.

О «виртуализации» платежных услуг в национальной платежной системе России

Currently, there is a development of e-Commerce, the possibility of reducing the cost of transfer services, the ability to make payments anonymously, as well as the elimination of gaps in legislation regarding the legal regulation of new technologies used for several years — payment applications, payment services, etc. The author of the article describes how the “virtualization” of the national payment system affects all types of payment services and how it manifests itself in relation to the payment acceptance service, postal transfer service and money transfer service. Special attention is paid to the activities of payment systems and the organization of the remote payment mechanism.

Digital technologies in the financial market of Kazakhstan

The article reveals the processes of digitalization of the financial market of Kazakhstan. The authors examined innovative services and new digital financial instruments that determine the development of remote connection mechanisms for bank customers and other market participants. The analysis of the existing architecture of the financial market is carried out and the role of fintech companies in its development is determined. The authors highlighted the key fintech companies of Kazakhstan using fintech solutions in one form or another. The article describes the positive experience of Bank CenterCredit JSC in implementing the Open API financial platform. The content of the innovative customer-oriented product Credit API is disclosed. The authors consider it promising to use the Payment API service in the infrastructure of the domestic market, which provides new opportunities for customers when making remote payments. As new market participants, business structures using P2P platforms are considered. The P2P platforms allow the investor to lend to a private person or business in a remote format through a special website. The article outlines the problem of developing financial inclusion and innovative forms of improving financial literacy based on communication digital resources. The authors presented a vision of the digital financial infrastructure of Kazakhstan. The collaboration scheme is built through the interaction of five key areas of development of digital financial blocks, the integration of which is carried out through the Open API and Smart Brigde. The article substantiates the need for high-tech interaction between the regulator and market participants using the full electronic document management format and creating a digital financial market regulator.

Identification and analysis of factors determining the readiness degree of the Russian Federation financial sector to the digitalization processes

Nowadays, the rapidly growing technology market and the digitalization process that covers all areas of economic activity have a strong impact on financial markets. Changes in the financial sector occur both within the financial market objects themselves and in the processes of interaction with each other and clients. These changes are related to the application of new digital technologies, including distributed accounting technology, big data analysis, cloud computing, artificial intelligence, biometric technologies, augmented / virtual reality. These technologies are related to processes such as customer use of banking applications, remote payments, planning, lending and financing, trade and investment, insurance, security, regulatory operations and communications between financial market participants and customers.Such financial sector processes as fintech, regtech, investtech, creditech, inshurtech, cybertech, opertech, robotech, analytech, which reflect the digital aspect of the traditional processes of this market segment, have been described in the article. The article includes materials obtained in the course of the OECD’s work over the past few years on a number of related topics, including “Innovation in financial services”, “Digitalization and Finance”, which complements the study with additional relevant materials of international level. Technological innovations in the field of finance have been considered and their impact on the processes listed above has been evaluated. A detailed description of each of the nine processes contains the rationale and examples of the use of digital technologies, as well as the degree of integration and impact on these processes. The relevance of this topic is due to the fact that today there are no publications in domestic and foreign sources on the identification, analysis and evaluation of factors that affect the financial sector of the economy due to the lack of statistical and analytical information. In this regard, the conclusions made are of both scientific and practical interest not only in Russia, but also in other countries with developing and developed economies.

Security of Chip Bank Card in Remote Payment Based on Risk Feature

Security of Chip Bank Card in Remote Payment Based on Risk Feature

Remote Purchases & Proximity Payment in Indonesia. Why Grow So Fast?

The phenomenon of the development of mobile payment in Indonesia, especially remote purchases and proximity payments, is decomposed by the Service-Dominant Logic approach. Furthermore, data from socioeconomic characteristics which are the diffusion of mobile phones, internet retailing, and consumer mobile commerce in Indonesia utilize to elaborate on the phenomenon. The results show that this phenomenon is the result of the Service-Dominant Logic oriented mobile commerce system service. Moreover, Indonesia's potential in ASEAN is still tremendous, the number of Indonesian families with smartphones is still 56.6%, smaller than other ASEAN countries, and the infrastructure supported by the Palapa Ring which will improve internet access. Nevertheless, a comprehensive service system also needs to be supported by comprehensive monitoring and supervision of services with the Service-Dominant Logic paradigm. Keywords: Remote Purchase, Proximity Payment, Indonesia DOI : 10.7176/EJBM/11-27-19 Publication date :September 30 th 2019

Physical Unclonable Function (PUF)-Based e-Cash Transaction Protocol (PUF-Cash)

Electronic money (e-money or e-Cash) is the digital representation of physical banknotes augmented by added use cases of online and remote payments. This paper presents a novel, anonymous e-money transaction protocol, built based on physical unclonable functions (PUFs), titled PUF-Cash. PUF-Cash preserves user anonymity while enabling both offline and online transaction capability. The PUF’s privacy-preserving property is leveraged to create blinded tokens for transaction anonymity while its hardware-based challenge–response pair authentication scheme provides a secure solution that is impervious to typical protocol attacks. The scheme is inspired from Chaum’s Digicash work in the 1980s and subsequent improvements. Unlike Chaum’s scheme, which relies on Rivest, Shamir and Adlemans’s (RSA’s) multiplicative homomorphic property to provide anonymity, the anonymity scheme proposed in this paper leverages the random and unique statistical properties of synthesized integrated circuits. PUF-Cash is implemented and demonstrated using a set of Xilinx Zynq Field Programmable Gate Arrays (FPGAs). Experimental results suggest that the hardware footprint of the solution is small, and the transaction rate is suitable for large-scale applications. An in-depth security analysis suggests that the solution possesses excellent statistical qualities in the generated authentication and encryption keys, and it is robust against a variety of attack vectors including model-building, impersonation, and side-channel variants.

Płatności bezgotówkowe w jednostkach administracji publicznej

Non-cash trade is an important indicator of the level of economic development in a country. Non-cash payments in the last years have gained significant social acceptance, and at the same time are developing intensively. Among the benefits of non-cash transactions for the economy and public administration and citizens, we can distinguish: greater convenience of citizens, more friendly citizen service, lower costs and time savings, transaction and citizen security, crime reduction, higher revenues to the state budget and local budgets, positive impact of the development of local investments, improvement of the office’s work, positive impact on the perception of the office by citizens. Among the types of non-cash payments, we distinguish direct payments (eg at the office) and remote payments (eg electronic transfer, payment by card, payment by mobile application). Ministry of Development in cooperation with Krajowa Izba Rozliczeniowa S.A. (KIR) since 2017, has been carrying out work within the framework of the Program for the promotion of non-cash payments in public administration units. The program applies to voivodship offices, marshal offices, city and commune offices, poviat starosts and the Police. As part of the Program, a model for acceptance of non-cash payments has been prepared using POS terminals and using WebPOS Paybynet in public administration units, which is free both for the office and payers. By the end of the first quarter of 2018, over 1.4 thousand offices had joined the “Program” – more than 50 percent all offices in Poland. Contracts for the installation of POS terminals or WebPOS Paybynet were concluded with 1165 offices.

Building a Secure Mobile Payment Protocol in the Cloud

This paper is mainly to resolve the secure problems of mobile payment business which the remote payment is their main businesses. The identity authenticity of mobile payment user, the confidentiality and non repudiation of information transmitted in the mobile payment process are all the main secure problems. The secure mobile payment protocol is established base all the above secure problems’ solutions.

Paying abroad as you pay at home: The impact of SEPA on Dutch cross-border retail payments

Results from a longitudinal study among Dutch consumers indicate that the unification of the European payments market is beginning to pay off. The similarity between payment behaviour of Dutch consumers within the Netherlands and when visiting or making a remote payment to another country in the euro area has increased during the past seven years. Perhaps even more importantly, the satisfaction of the Dutch about cross-border payments within the euro area has also improved considerably, but some consumers still experience problems with respect to ease of use, transaction speed and acceptance of their preferred payment instrument when paying abroad or paying cross-border. Such issues deserve further attention on a European scale.