Use Of Payment Cards Research Articles

Riding the wave of change: Buy now, pay later as a disruptive threat to payment cards in the global market

This paper studies changes in the worldwide payment system by examining the growing popularity of buy now, pay later (BNPL). Considering variables related to individual financial personality and socio-demographic traits, we provide an original dataset to investigate whether BNPL could be a valid substitute for the use of payment cards. The results show that the payment card sector should take BNPL seriously as a competitive challenge. The developments of the COVID-19 pandemic suggest a possible change from the usage of payment cards towards BNPL, similar to what happened with cash transactions. This research contributes to the literature on the topic by proposing fresh ideas for payment methods and the financial sector, which continue to evolve in response to consumer needs.

Financial accessibility in Southern Russia: A study of digitalization and regional differences

Subject. The article addresses the effectiveness of digital innovations in financial inclusion in the Southern Federal District of Russia. Objectives. The aim is to assess the impact of digitalization on the process of financial inclusion in Southern Russia. Methods. The study rests on the analysis of secondary data obtained from the Bank of Russia and regional financial institutions. These included quantitative data on the spread of banking networks, financial inclusion indices, and the adoption of digital financial services in Southern Russia. Furthermore, I conducted a survey of existing literature on financial inclusion and digitalization to provide context and theoretical background. I also applied descriptive statistical methods to identify and analyze patterns and trends in the data, and comparative analysis to assess regional differences in financial inclusion and digitalization in Southern Russia. Results. The study revealed significant regional differences in the availability of digital financial services. The survey found a growing trend towards the adoption of digital payment methods, with a marked increase in the use of payment cards and mobile banking services. However, the pace of digitalization was uneven across regions, influenced by factors such as demographic structure, economic development, and cultural practices. Conclusions. A customized approach that takes into account the unique socio-economic characteristics of each region is critical to bridging the digital divide in financial services. This study contributes to understanding the complex relationship between digitalization and financial inclusion in a region with diverse socioeconomic conditions, provides insight for policymakers and financial institutions on how to design strategies for inclusive and sustainable financial development.

Dynamics of bank lending in ukraine: influence of the development of digital innovations and technologies

The article examines the relevance of the development digital innovations and technologies and their impact on the growth of the fintech direction of digital lending, which is represented by the landscape of fintech companies that use the disruptive power of digital technologies and the advantages of innovations of service institutions to offer consumers a wide range of digital credit products and services. The purpose of the article is to define the essence of digital lending and identify the role of digital technologies and innovations in the development of fintech, using the example of calculating the dynamics of bank lending in Ukraine. The article characterises the essence, types and significance of digital technologies in the context of the general development of the financial sphere and the credit market. The role and types of financial innovations are highlighted as the ability of fintech companies to combine digital technologies through product and service transformations. The unique role in terms of scale and impact on other areas of financial innovation of digital lending as a direction of fintech focused on digital forms of providing and administering loans through digital channels using a range of digital technologies to collect and process digital customer data is emphasised. A description of the directions of digital lending and the critical component of its development is presented. The bank is proposed to be characterised as the primary mediator in the credit market using digital innovations and technologies. A set of more than 30 indicators has been formed within three groups of components for evaluating the effectiveness of digital lending by banks, characterising the state and dynamics of non-cash transactions, the use of payment cards, payment and credit banking infrastructure, and credit and deposit activities of banks. A methodology for calculating the Harrington desirability function is proposed to calculate a comprehensive assessment of the “quality” of the functioning of the electronic payment segment of the banking sector of Ukraine in the context of the potential for developing digital banking lending.

Substantiation of the marketing policy of banks on the basis of statistical analysis of the payment card market

Substantiation of the marketing policy of banks on the basis of statistical analysis of the payment card market

ANALYSIS OF THE APPLICATION OF PAYMENT CARDS IN THE COUNTRY AND ABROAD

In the past years, the digitalization process is moving forward and the possibilities and different payment methods are expanding more and more, but the covid pandemic forced that process to go at a stronger pace, faster digitialization of financial services and thus provided faster and better functions for bank customers. The results of various researches show that as a result of the offer of a large number of alternative payment methods, not only the customers benefit, but also the online merchants who in this way realize more sales. Although there has been a change in the payment landscape and a number of alternative payment methods have been offered, payment cards remain number one among them all.The purpose of this paper is to analyze the application of payment cards in our country, their structural participation in the total value and the total number of payments, i.e. their application at virtual and physical sale, with an emphasis on contactless technology, i.e. contactless payment cards . A comparative analysis of the use of payment cards in different years has also been made. An analysis of the use of Macedonian payment cards for purchases in foreign countries was also made according to their participation in the total value of electronic transactions.

ASSESSMENT OF UKRAINE'S COMPETITIVE POSITIONS IN THE INNOVATIVE SPHERE OF CASHLESS PAYMENTS AND DEVELOPMENT PRIORITIES OF THE BANKING SECTOR

Now more than ever, technological developments are changing the financial ecosystem and the future of banks. New financial technology players, as well as existing technology companies, have begun to provide financial services traditionally provided by banks. At the same time, customers who are increasingly digitally savvy.
 to remain competitive against new players, attract customers and reduce costs, the world's major banks have identified digital transformation as a business priority for the coming years.
 Therefore, it is extremely important to study the impact of currently innovative forms of non-cash payments on the competitiveness of banks and some of the main factors that contributed to such a transformation.
 The work described the definition of "innovation" and "innovative technologies" and their functioning in view of the national experience. The process of settlement regulation from the regulatory and legal support in Ukraine is considered.
 The article investigated the optimization of the infrastructure for the use of payment cards, mobile wallets, payment via the Internet, etc.
 Quantitative and volume indicators of the use of cash and non-cash payments were analyzed and it was proven that customers still use cash in their payments despite the increase in the trend of non-cash payments.
 New forms of innovation used by banks to improve their work and attract new customers are described. Among the main innovations are cashback, Google Pay, Apple Pay, the NFC system.
 The perspective of using electronic payments to increase the competitive advantages of banks has been studied.
 Concepts of bank development were analyzed taking into account its specialization and based on the analysis of strengths and weaknesses, and the strategies of banks depending on their characteristics were highlighted.

Effects of Payment Cards on Financial Performance of Commercial Banks in Kenya

Since 2009, Kenya's financial system has experienced remarkable financial innovation with possible implications on financial performance of commercial banks in Kenya. Increase in financial literacy in Kenya has increased the use of payment cards and also infrastructural expansion of commercial banks led to increase in the number of points of sales. However, later with the adverse effect of financial crisis since 2008, most banks were forced to close down some of their branches and points of sales as a cost cutting measure, some became victims of mergers and acquisitions. This led to decrease in the number of payment card transactions. Though ATMs have contributed a lot in improving the efficiency of banking to customers, they have a high fixed and maintenance cost. The study sort to establish the relationship between payment cards and financial performance of commercial banks in Kenya. Cross-sectional descriptive survey research design was used. The population of this study was 42 commercial banks licensed by the Central bank of Kenya from 2011 to 2020. The study used secondary data obtained from the 42 banks’ annual financial reports for a ten years’ time period from 2011 to 2020. The study was guided by Coase Theorem, Constraint Induced Financial Innovation Theory, Circumvention Innovation Theory and Innovation Diffusion Theory. Data was analysed using descriptive statistics and panel model. The results indicate that Debit card on ATM had a positive significant relationship with ROA at 5% significance level. The Credit Cards on ATM and POS Machines were also positively related to ROA but were not statistically significant while Prepaid Cards ATM was negatively related to ROA and non-significant. The study recommends that commercial banks should continue investing in innovation delivery channels because they are able to control their costs much better as compared to investment on physical branches. The findings contributed to new knowledge to literature and theory.

Міжнародний досвід розвитку ринку платіжних карток і проблеми функціонування платіжних карток в Україні

Cash, payment systems and instruments in modern conditions are the basis of the economy and life of each country, ensuring the possibility of exchange between the owners of certain goods or services, which, in turn, is one of the main conditions for the existence of credit and the State. The presence of a bank payment card gives its owner a number of advantages, including convenience during the calculation, reliability of saving the own funds, paying bills online. Bank payment cards are effective and profitable for all participants of the payment system, as evidenced by their rapid spread. For banking institutions, such operations bring profit in the form of commission income from servicing card accounts, accomplished transactions, as well as from an increase in the number of customers through the provision of new services, reducing the bank’s costs for servicing cash, etc. Bank payment cards are one of the most progressive tools for providing banking services. In the circumstances of the unstable situation in the financial market because of the hostilities on the territory of Ukraine, the coronavirus epidemic, the lack of financial resources, it becomes extremely necessary to expand and improve cashless payments due to the introduction of innovations in the payment card market. The article is aimed at summarizing the problems with functioning and development of the payment card market in Ukraine, along with the possibilities of using international experience to solve them. The article defines the advantages and disadvantages of practical use of payment cards in the financial market of Ukraine. Taking into account the mentioned shortcomings in the use of bank payment cards in non-cash payments, factors that hamper the development of the domestic payment card market are identified. The results of the study of the development of the payment card market allowed to outline the main problems of using payment cards in Ukraine. The ways of their solution are proposed and substantiated. International experience in the development of the payment card market is studied and analyzed

Розвиток ринку цифрових валют центральних банків у висококонкурентному середовищі

The purpose of the article is to theoretically and empirically examine the competition between central and commercial banks in connection with the emergence of digital money of central banks and the outflow of public funds from commercial banks. The evolution of theoretical foundations and assumptions regarding market competition is considered through the prism of emergence of private money. It is emphasized that the use of cash in many countries, including Ukraine, is declining. Under the influence of the development of financial and technological companies, there are more and more ways to make electronic payments without the use of payment cards and banking services. In many countries, the number of cryptocurrency users is growing, which further increases the level of competition between the private and public sectors. The main threats and risks to the development of the cryptocurrency market, the main advantages of cryptocurrency and the latest trends in the development of the cryptocurrency market, in particular in Ukraine, have been defined. It has been discovered that cryptocurrencies have become a means of payment in many countries, their number continues to grow. Ukraine has topped the ranking of countries with the largest share of the population owning cryptocurrencies which comprise 12.7%, entering the top 5 countries in the world in terms of the number of the users of crypto assets. The development of the cryptocurrency market has led to increased competition for private digital currencies, which has become one of the reasons for the issuance of the central bank’s digital currency (CBDC). The introduction of CBDC is mainly due to gradual trends in the digitalization of the economy, the emergence of decentralized cryptocurrencies, which have created competition to banking systems (in particular, bank settlements). However, the signs of decentralization and a high level of confidentiality, which are characteristic of cryptocurrencies and are the guarantee to demand for them, reduce the competitiveness of the CBDC and create certain risks for the global economy. A tendency has been identified for central banks to find ways to maintain a leading role in the payment system, ensuring public access to central bank money and at the same time developing innovations in the financial sector.

The Use Of Payment Cards In Kazakhstan: Analysis And Forecast

The aim of the study is to analyze and forecast the use of payment cards for making non-cash payments through national payment systems in Kazakhstan. Based on this goal, a hypothesis was put forward that in Kazakhstan, there is a relationship between the number of payment cards and the volume of non-cash payments. This hypothesis was confirmed because of the study. The information base of the study was the data on payment cards, which were taken from the Statistical Bulletin of the National Bank of the Republic of Kazakhstan. Hypothesis testing was carried out using correlation analysis for three periods: 2009, 2016, 2020. The method of finding Pearson’s correlation in the SPSS program was used. The results showed a downward change in the relationship between the selected indicators and the amount of funds transferred over time. Also, in this study, a forecast was made for 2021-2023 for the indicators under consideration. To make a forecast for the indicators under consideration, a graphical method (polynomial trend line) was used. The resulting forecast shows the growth of cardholders and, consequently, the spread of the number of payment cards among the population in 2021-2023. The practical significance of this study is that the proposed methodology can help predict the dynamics of payment cards in any country in the world. Recommendations are also given for further improving the financial system, since increasing the transparency of monetary circulation in small-and-medium sized businesses will lead to a positive result in the implementation of the program for universal declaration of income in 2025.

ІНТЕРНЕТ-ТЕХНОЛОГІЇ: ЇХ РОЛЬ ТА МІСЦЕ У РОЗВИТКУ СИСТЕМИ БАНКІВСЬКИХ ПОСЛУГ

The article examines the role of Internet technologies and their implementation in the modern banking system. Modern information technologies have achieved remarkable development, and, of course, the banking sector is no exception. After all, with the help of the Internet, you can perform most operations from home, being anywhere in the world and spending a minimum of time. Various information technologies began to have a significant impact on the profitability of banks and make them more competitive in the market of banking services, creating an attraction for customers. The system of remote banking services is quite convenient for customers and banks. Therefore, the article examines what factors and advantages of using remote technology for each category. Internet banking technology is taken as the basis in the article, which provides the bank with services for monitoring, account management, and banking operations through the Internet, and the list of operations that can be carried out with its help is also characterized. Analysed which services are most popular in remote banking in Ukraine in 2019–2020. From this research, conclusions are made that plastic cards occupy the largest share. Internet banking also occupies a large part of the market, because it is a versatile tool to increase funds raised and expand the customer base of banks. It is considered one of the most dynamic sectors of e-commerce, as its capabilities are constantly increasing and improving. The research on the use of payment cards has been conducted and the distribution of non-cash transactions by amount and quantity in the first half of 2021 has been analysed. And also the share of non-cash transactions in relation to cash by amount and quantity in 2017–2021 was analysed. On this basis, the benefits of the effective use of Internet technologies for consumers and banks are identified. The use of information technology allows banks to automate their activities and expand services and the customer base in different regions. Nevertheless, there remains a significant part of the distrust of this technology among the population in Ukraine. Therefore, the article considers what reasons impede and hinder the development of Internet banking in Ukraine based on the current economic situation.

Transformation of cashless payments in the European payment card market

The purpose of this study is to examine the current state and perspectives of non-cash payments by using payment cards in Ukraine, Poland, Sweden, Romania and Hungary. The factors of transformation of the term "non-cash payments" into the term "payment system" are considered in the article. Methodology: The theoretical and practical database of the bank cards market is considered as an information base of the research. In the course of the research general, scientific, theoretical and empirical methods were used, among which are the following:  analysis and generalization of literature on the research topic, methods of observation and comparison, structural methods, methods of coordination and formalization, graphical and tabular representation of data. The article presents trends in the development of new types of non-cash money, compares the development of the payment card market on a number of criteria and describes the main directions of modern use of payment cards for non-cash payments in the analyzed countries. The European Central Bank (ECB) data set, information from sites National Bank of Ukraine and Central banks of countries were collected for comparative economic research. The research findings show that changes of bank cards market greatly influence the development of non-cash payment in economy. The research findings show that changes in bank cards market greatly influence the development of non-cash payment in economy. The scientific significance of the work is that in article the issue of the factors of transformation of the non-cash settlement system into a payment system. The practical significance of the results is that in article shows in detail the ways to improve the Ukrainian market of bank cards using the experience of other EU countries. This article offers insights on the best European practice and challenges of on the bank cards market during 2015 - 2019 years. JEL Classification: G15, G21, O12.

Zmiany zachowań konsumenckich w zakresie przeprowadzania transakcji gotówkowych i bezgotówkowych

Contemporary changes involving the computerization of everyday life affect its every sphere. This is especially true of the financial world. Until recently, the basic form of payments were of cash, whereas currently they constitute only a small part of all in trade. Even in everyday shopping, payment cards are already widely used, and traditional money is systematically being replaced by non-cash money. Taking these observations into account, the aim of the study was to identify the pace of changes in consumer attitudes in the use of selected services offered by the banking sector, i.e. the use of ATMs and the use of payment cards. The work was based on quarterly data for the period 2005 Q1 – 2020 Q1 provided by the National Bank of Poland. The analyses examined the rate of changes and their seasonal distribution. The analyzed data show that society uses fewer and fewer cash withdrawals from ATMs, although larger amounts are withdrawn. The fact that ATMs are used less frequently reduces their number. However, the non-cash payments market is constantly developing. This form is characterized by the highest growth dynamics. There are also changes in seasonal behavior. Today, more transactions are made in the second and third quarters. Quite unexpectedly, it was observed that the number of transactions in the fourth quarters was lower than the number of transactions in the second and third quarters. However, the fewest transactions are invariably carried out in the first quarters. Depending on the instrument, the differences amount to two to ten percentage points. In general, research shows that in a stable market, trust in non-cash money grows at the expense of cash. Only a crisis situation – in 2020 it was the declaration of a pandemic – there is a slightly increased interest in cash.

Cashless Payments and Economic Growth in Selected European Countries

<p>Purpose of the article: The aim of the paper was to show connections between the instruments of cashless payments and economic growth. The goal was to find the answers to the following research questions: What is the current share of payments with the use of particular forms of cashless payments in total payments?; What forms of cashless payments are connected with economic growth measured by real GDP per capita in the group of countries of Central and Eastern Europe and Western Europe?; What is the relation between the value of cashless payments and economic growth measured by real GDP per capita in the group of countries of Central and Eastern Europe and Western Europe?</p><p>Research methods: Spearman’s rank correlation.</p><p>Research results: The authors have found that the highest share in terms of the number of payments in total payments in the countries of Central and Eastern Europe constituted payments with the use of payment cards, then, the payments with the use of a transfer order. Whereas, in the countries of Western Europe, apart from the fact that high percentage of payments in total constituted payments with the use of payment cards and transfer orders, more and more payments are made with the use of the instruments of e-money. Examining mutual relationships, information about correlational connections that occur between economic growth measured by GDP per capita and value of payments with the use of some instruments of cashless payments was obtained. The main conclusion that can be drawn after data analysis is positive relationships between the value of payments with the use of a transfer order, payment card and economic growth found both in the countries of Central and Eastern Europe and the countries of Western Europe. In the countries of Western Europe, the payments with the use of a direct debit turned out to be insignificant, whereas the payments with the use of instruments of e-money were signifiant. Taking into account the force of relationships, it can be said that higher positive correlation is shown by the value of payments with the use of a transfer order with reference to real GDP per capita in the countries of Western Europe (0.80). In the countries of Central and Eastern Europe, it is only 0.48. Mutual connections between the value of payments with the use of payment cards and economic growth are similar in both groups of countries. What is interesting, high impact on real GDP per capita – about 0.80 – is shown by the payments with the use of instruments of e-money. This study may represent a contribution to further research, that is, an analysis of cause-and-effect relationships in the field of cashless payments and economic growth, including division of countries in terms of, for example, the level of wealth.</p><p>Added value: Analysis of current literature on the impact of cashless payments on economic growth and an empirical analysis.</p>

Преступления, совершённые с использованием электронных средств платежа, в законодательстве стран англо-саксонской правовой семьи (на примере Великобритании и США)

The article analyses the legal characteristics of the criminal laws of foreign States belonging to the Anglo-Saxon legal family (in the case of Great Britain and the United States of America) with regard to criminal liability for crimes committed by electronic means of payment. The peculiarities of this legal family are noted, which affect the position of the legislator with regard to the regulation of cybercrime, including the legal nature of criminal law; The importance of resolutions of the Royal (Westminster) Courts, the Supreme Court on the constitutionality or unconstitutional nature of ordinary («current») laws (USA), in Canada, Australia and other English-speaking States, in which acts of the highest courts on identical subjects have acquired special importance. Problems affecting criminal legislation have been identified: the de facto absence of systematic rules on the limits of the criminal law; There are contradictions between the written sources of criminal law (in particular with regard to fraud and computer crimes; Recognition of the interpretation of the law by sources of criminal law, etc.). It is noted that there is no Criminal Code in the UK, however, issues of criminal liability for computer crimes are regulated at the level of written law: in the Law on Computer Crimes the adoption of which was facilitated by the judicial precedent of 1988 (R v Gold & Schifreen), in the Law on Fraud of 2006, which classifies the elements of crimes committed in the form of fraudulent fraud. The peculiarities of the criminal law of the United States, which like Great Britain, does not have a codified system of criminal law at the federal level, are noted. An analysis of the two-tier legal system of the United States, the peculiarities of criminal liability for cybercrime in certain states, including FOR theft and fraud by the use of payment cards, has been carried out.

Penetration of Digital Payments in Greece after Capital Controls: Determinants and Impact on VAT Revenues

Abstract The use of payment cards in Greece more than tripled in value between 2014 and 2017. Their penetration lifted off with the imposition of capital controls in 2015 and then remained on an uptrend, aided further by the measures of law 4446/2016. According to the findings of the study: (i) the law had a statistically significant, positive impact on card usage, especially in the second half of 2017, controlling for the effects of macroeconomic factors and capital controls and (ii) the penetration of electronic payments had a significant positive impact on tax compliance. Nevertheless, the average level of card use in Greece has remained lower than the EU average, while it presents significant heterogeneity across sectors and geographical areas. In conclusion, more targeted measures are warranted in order to enhance further the penetration of electronic payments, which would yield even greater fiscal benefits.

The Role of Payment Cards as a Transaction Tool in Poland

Summary Subject and purpose of work: The article addresses the issue of the increasing use of payment cards in Poland and related consequences in the number and volume of transactions cash and cashless. The article analyzes the growing importance of cards as a transaction medium of Poles. The topic of potential alternative payment methods was also discussed. Materials and methods: The study used the analysis of literature and source data from, among others, National Bank of Poland, prnews.pl, Statista.com database, websites of banks and others. Descriptive and statistical methods were used in order to prepare the research. Results: In Poland, the number of cards owned by citizens is growing rapidly, as well as the volume and number of transactions concluded with them. Customers, banks and economic and commercial units are most interested in payment cards market. Conclusions: Transaction with cards deepens customer attachment to a particular brand of the organization and allows to gain benefit from transaction fees. The popularization of cards results in a limited share of cash in transactions. Making debit card payments requires customers to have sufficient deposits on the account, which is also an advantage for the bank. It is expected that the scope and role of mobile payments will grow dynamically.

The macroeconomic impact of payment cards

This paper focuses on the macroeconomic benefits of the transition from paper-based to electronic payments, examining the impact of payments using debit and credit cards on household consumption. The empirical model is based on the work of Zandi et al.1, with a considerably richer dataset in terms of the number of years and countries. The results confirm that the use of payment cards has a positive impact on private consumption and gross domestic product (GDP), while finding a meaningful effect for both consumption and GDP — and a larger impact for both than found by Zandi et al. The analysis indicates that the transition to electronic payments matters for both the economy as a whole ( for GDP) and for individual families (through higher consumption). Overall, card penetration contributed to global GDP by an annual average of 0.243 percentage points, which translates into US$160bn per year. The contribution of card usage to global income approximately amounts to the 2014 GDP of Kuwait, and is slightly lower than the 2014 GDP of Bangladesh and Vietnam (US$183bn and US$185bn, respectively) and slightly higher than the 2014 GDP of Hungary and Ukraine (US$136bn and US$130bn, respectively).

Did the Target data breach change consumer assessments of payment card security?

Previous research has found that perceptions of payment security affect consumers’ use of payment instruments. This study tests whether the Target data breach of 2013 had any impact on consumer perceptions of the security of credit and debit cards and/or any impact on consumers’ use of payment cards. Using data from the Survey of Consumer Payment Choice, the study finds that, controlling for possible confounding effects of demographic differences between the two groups, ratings by consumers who assessed the personal information security of debit cards shortly after the breach were lower than ratings by consumers who responded before the breach was reported. For credit cards, there was no difference in the ratings given by consumers who responded to the survey before the breach was reported and the ratings of those who responded after the breach was reported. Based on prior research on the impact of security assessments on payment instrument use, one would expect a small (economically insignificant) decline in debit card use from this lower rating. However, the study finds no statistically or economically significant change in debit card use from 2013 to 2014.

The issue of crimes committed with some electronic payment devices

It is acommonplace that the internet is one of the most powerful tools at the dis­posal of contemporary societies; it is also one of the most dynamically developing ways of information transfer. Access to information is the most important and desirable aim of human aspirations. The internet is still developing very dynamically, thus defying any efforts at determining the limits of its advancement; it creates infinite opportunities in various areas, while its great potential affects all aspects of human existence. For years the internet has also been the medium for financial transactions involving electronically regulated cash flow. Many of these transactions are carried out with the use of payment cards, which for many people constitute anobvious alternative to traditional transactions involving cash. The history of payment cards elsewhere in the world goes back to the beginning of the previous century, but in Poland they came into use much later, i.e. in the mid-1990s. The development of the internet, and especially the speed of data transfer which it offers, have greatly facilitated the transactions involving payment cards. This fact poses aquestion concerning the security of such transactions. The popular and universal character of online payments, not necessarily with the use of payment cards, resulted in the emergence of crime involving identity theft and conducting illegal transactions.