Showing papers on "Payment service provider published in 2022"
TL;DR: In this article , the authors study the impact of FinTech competition in payment services when a monopolist bank uses payment data to learn about consumers' credit quality, and show that consumer welfare is higher under data sales than with data portability.
Abstract: Abstract We study the impact of FinTech competition in payment services when a monopolist bank uses payment data to learn about consumers’ credit quality. Competition from FinTech payment providers disrupts this information spillover. The bank’s price for payment services and its loan offers are affected. FinTech competition promotes financial inclusion, may hurt consumers with a strong bank preference, and has an ambiguous effect on the loan market. Both FinTech data sales and consumer data portability increase bank lending, but the effects on consumer welfare are ambiguous. Under mild conditions, consumer welfare is higher under data sales than with data portability.
12 citations
TL;DR: In this article , the authors found that mobile payment users were less financially vulnerable than nonusers and those women were more likely users of digital payment technologies than men, although they did not find this to be related to the use of mobile payment or other digital payment methods.
Abstract: The purpose of this study is to test the notion that the use of digital payment methods, such as paying with a mobile phone, increases the risk of financial vulnerability. Research from the USA indicates such a relationship, and we study whether this finding can be generalized to other countries. Motivated by recent changes in EU legislation related to financial transactions, we also examine willingness to use social media companies for money transfers along with sharing bank account information with third-party financial services. Exploiting data collected from a representative sample of the Norwegian adult population (n = 2202), we identify differences in financial behaviour and characteristics between users and nonusers of different digital payment methods. In contrast to US studies, we find that mobile payment users were less financially vulnerable than nonusers and those women were more likely users of digital payment technologies than men. Younger generations and those with low financial literacy were more financially vulnerable than others, although we did not find this to be related to the use of mobile payment or other digital payment methods. The results show that there is a need for more research from different countries outside of the USA to obtain an understanding of the consequences of increased digitalization of financial services. In addition, as COVID-19 has shifted a vast amount of spending online and these newer payment technologies have become more available, we need to gain a better understanding of how they influence financial behaviour.
8 citations
TL;DR: In this paper , the influence of financial literacy on unconventional banking and non-banking financial services across countries was examined and the results demonstrate that financial literacy encourages electronic payment, mobile phone payment and remittance.
5 citations
TL;DR: In 2014, the RBI introduced two new categories of banks in the Indian financial system, namely Payment Banks and Small Banks, to increase investment and to distribute financial product and services in undeveloped rural areas as mentioned in this paper .
Abstract: In India, due to the financial deprivation of the poor and disadvantaged it has resulted in many citizens not being able to properly access important banking institutions and services that hinder the growth and financial progress of a few. This is very common in rural areas, hence the need to address the above problem. India's financial system has seen dramatic changes since 1991. The banking sector is one of the most efficient after the liberation, and success can be attributed to the major banking changes made by the RBI and other major technological changes that have taken place over the years. In 2014, the RBI introduced two new categories of banks in the Indian financial system, namely Payment Banks and Small Banks. The main purpose of introducing these banks is to increase investment and to distribute financial product and services in undeveloped rural areas. This paper introduces the framework for payment banks, as well as the expected benefits from payment banks. How this India Post Payment Bank will be an amazing step in providing financial services to customers, especially migrant workers and those from low-income households, as well as bringing them into the formal financial system. This paper is based entirely on the second data to give an overview of the payment bank and its operation and how the concept of the payment bank kills two birds with one stone. First, its move towards a financial inclusion program by expanding digital payment infrastructure. Second, it promotes a culture of financial technology in Indian banks. The positive findings in the depth of financial services and financial inclusion in India, especially in rural areas, are mainly focused on low-income groups and small businesses.
4 citations
01 Jan 2022
TL;DR: In this article, a case of a payment service provider whose business model contributes to the growth of e-commerce is discussed, and the purpose is to tease out how research on platforms has developed since ecommerce was in its infancy.
Abstract: This chapter visits some of the fundamental concepts from platform economics, network effects, and network externalities. Further on, it discusses definitions of two-sided and multi-sided markets, how they are treated as business models. These concepts are further compared to the concept service ecosystem. A case of a payment service provider whose business model contributes to the growth of e-commerce is included. The purpose is to tease out how research on platforms has developed since e-commerce was in its infancy. The fundamental concepts developed in network economics are still valid and have been translated into different fields with a focus on value creation, information, and interaction. How platforms within platforms spur each other's growth is an area that has the potential to reach new insights on the platform economy. (Less)
3 citations
3 citations
TL;DR: In this paper , a grounded theory approach based on data collected from interviews of target customer groups and of managers at some payments banks was used to understand the reason for payments banks not taking off as envisaged.
Abstract: Payments banks came into existence in India in 2015 when the Reserve Bank of India awarded licenses to eleven applicants to set up these banks specifically to further financial inclusion by providing small savings accounts and facilitating payments and remittances to the financially excluded population. As of March 2020, only six of these were operative and not very successful, both from the profitability and customer growth perspectives. This article seeks to understand the reason for payments banks not taking off as envisaged. Attributing this primarily to low adoption of payments banks by the financially excluded customer segments, this study uses a grounded theory approach based on data collected from interviews of target customer groups and of managers at some payments banks. The primary factors contributing to low adoption by the customer segments studied here, namely migrant labor and small vendors, have been identified as lack of awareness, lack of trust and lack of perceived need for their products/services. These factors arise due to inconsistencies between the business model design and the nature of the target audience. The article further discusses managerial and policy implications of these conclusions.
3 citations
TL;DR: In this article , the authors analyse how population-based payments may be taken up more fiercely in a system run on the principles of managed competition, and they find that strong leadership, trust, and mutual understanding are paramount to overcome silos to integrate services across providers.
2 citations
01 May 2022
TL;DR: In this paper , the authors examined to what extent the COVID-crisis has affected trust in banks' payment services using unique daily data for a representative panel of Dutch consumers.
Abstract: Trust in banks is key, especially in turbulent times. Using unique daily data for a representative panel of Dutch consumers, we examine to what extent the COVID-crisis has affected trust in banks' payment services. We have the following main findings. First, COVID-19 measures have affected trust in banks' payment services. The first lockdown increased narrow-scope trust (trust in consumers' own bank payment services) and broad-scope trust (trust in banks' payment services in general). The second lockdown decreased both notions of trust. The crisis measures impacted the trust of the elderly the strongest. Second, personal characteristics are significantly related to trust in banks' payment services. For example, we find that both types of trust are increasing with digital literacy and the ease of getting by with income. Third, narrow-scope trust is higher than broad-scope trust. The gap between trust in the own bank and trust in banks in general is highest for customers of small banks.
2 citations
TL;DR: In this article, the authors explore the role of social influence, facilitating conditions, perceived risk, and effort and performance expectancy in order to unravel the determinants of consumers' acceptance of account information services (AIS) as provisioned under PSD2.
Abstract: Globalisation, technological advances, liberalisation of financial markets, and changing consumer behaviour are transforming banking profoundly. Under the EU Payment Services Directive 2 (PSD2), incumbent banks must open up their data, processes, and business functionalities to customers and third parties including rivals. It is critical to understand consumer behaviour post-PSD2, and the potential impact of PSD2 on the functioning of the retail banking and financial services market. In this preliminary study of 244 consumers from six European countries, we explore the role of social influence, facilitating conditions, perceived risk, and effort and performance expectancy in order to unravel the determinants of consumers’ acceptance of account information services (AIS) as provisioned under PSD2, which provide consolidated bank account information for consumers with multiple bank accounts across multiple banking institutions. Our findings suggest that the competing influences of (a) positive perceptions such as social influence, facilitating conditions, and performance expectancy, and (b) negative perceptions related to risk, sway consumers’ intentions to adopt AIS.
2 citations
01 Jan 2022
08 Jul 2022
TL;DR: In this article , the authors provide a comprehensive literature review on the emerging digital payment technologies and associated challenges, and present the key challenges in digital payment technology categorized into broad themes: social, economic, technical, awareness and legal.
Abstract: The interplay between finance and technology with the use of the internet triggered the emergence of digital payment technologies. Such technological innovation in the payment industry is the foundation for financial inclusion. However, despite the continuous progress and potential of moving the payment landscape towards digital payments and connecting the population to the ubiquitous digital environment, some critical issues need to be addressed to achieve a more harmonious inclusive and sustainable cashless society. The study aims to provide a comprehensive literature review on the emerging digital payment technologies and associated challenges. By systematically reviewing existing empirical studies, this study puts forward the state-of-the-art classification of digital payment technologies and presents four categories of digital payment technologies: card payment, e-payment,mobile payment and cryptocurrencies. Subsequently, the paper presents the key challenges in digital payment technologies categorized into broad themes: social, economic, technical, awareness and legal. The classification and categorization of payment technologies and associated challenges can be useful to both researchers and practitioners to understand, elucidate and develop a coherent digital payment strategy.
TL;DR: In this paper , the role of financial technology based on the digital payment system e-wallet in improving financial literacy in MSMEs is investigated, which is measured by knowledge and understanding, risks and benefits, features, security and confidentiality, and skills in using e-wallets.
Abstract: This study aims to determine the role of financial technology based on the digital payment system e-wallet in improving financial literacy in MSMEs. Financial technology based on the digital payment system e-wallet is a financial service that can help MSME actors to make payment transactions easily and automatically provide financial recording facilities related to cash receipt transactions that occur in the business of MSME actors. There are 4 levels of financial literacy, namely not literate, less literate, sufficient literate, and well literate. Financial literacy in this study was measured by knowledge and understanding, risks and benefits, features, security and confidentiality, and skills in using e-wallet used by MSME owners. The study was conducted on 2 MSME coffee shops that use financial technology based on the digital payment system e-wallet, namely Wiji Kopi and Tradition Ngopi. The type of research in this study is qualitative with a case study approach. This research uses spiral data analysis technique. This study uses primary data and secondary data in the form of interviews, observations, literature studies, and documentation. Research results The application of financial technology based on the digital payment system e-wallet facilitates the business activities of MSME coffee shop actors, especially in terms of managing payment transactions in their business so as to increase the financial literacy of coffee shop MSME actors.
TL;DR: In this article , the authors present the two existing virtual account models functioning in the European Union, examine their legal validity and identify the legal challenges related to the functioning of these models.
Abstract: The purpose of this paper is to present the two existing virtual account models functioning in the European Union, examine their legal validity and identify the legal challenges related to the functioning of these models. The first model, Mass Payment Accounts, which is related to virtual accounts rather than to virtual IBANs, is the model where the licensed financial institution only provides a business payment (settlement) account, with technical subaccounts, to one of their business clients. The functionality of the subaccounts is limited to reflect and distinguish the incoming payments. The second and more complex model is the vIBAN solution, where the licensed payment institution provides, to another licensed financial institution, indirect access to local payment schemes (hereinafter referred to as “vIBAN”). To confirm the legal validity and identify the potential risks of vIBAN services, EU law was analysed with some insights from Polish law. The reason for introducing vIBAN services is the difficulty for certain payment service providers to participate in so-called designated payment systems. Designated payment systems are usually the most widespread local payment systems. The reason for the different treatment of these designated systems is banking systemic risk, understood as a situation where a default by a system participant may result in a default by other participants. Consequently, even if a given payment service provider can obtain its own IBAN number, there is often no possibility for it to participate in designated payment schemes. Bearing in mind the different rules in the case of designated payment systems, the legality of vIBAN services in the EU law is justified by the principle of free movement of services, the principle of equal access to payment schemes and the obligation of the credit institutions to provide banking and non-banking participants with credit institution payment account services on an objective, non-discriminatory and proportionate basis. However, there are various challenges related to the functioning of vIBAN services, such as the overlapping of certain AML/CFT obligations, enforcement of administrative and court seizures, AML-related blocking of vIBANs and consistency of money transfer sender data with the Fund Transfer Regulation. The most pressing challenges requiring prompt regulation on the European level are related to the applicable deposit protection scheme, as well as to specific Member States’ administrative restrictions, which can cause difficulties in offering vIBAN services to business entities.
01 Jan 2022
TL;DR: In this article , the authors investigated the trend performance and social impact on secured electronic payment (e-payment) in Malaysia during the period of 2016-20 and found that the problems that emerge in a cashless society and secured e-payment need to be well considered by the related parties, particularly the policymakers and regulators.
Abstract: The increasing speed of e-payment adoption is driven by multiple factors: Generation Z (individuals born between 1990s to early 2010s), easy payment methods, open banking ecosystem, rewards incentive, network, and the onset of COVID-19 in 2020. The Malaysian government hopes through collaboration with banks and payments industries to reach a cashless society, leveraging on the existing infrastructure to accelerate the migration to e-payments. The problems that emerge in a cashless society and secured e-payment need to be well considered by the related parties, particularly the policymakers and regulators, to position Malaysia on the right path to embark on the most advanced global trend. Therefore, this chapter aims through contextual analysis to investigate the trend performance and social impact on secured electronic payment (e-payment) in Malaysia during the period of 2016-20.
TL;DR: In this paper , the legal perspective of the transaction of bank guarantees in the banking practice in Indonesia is provided, by comparing the provisions related to payment for the bank garansi and that of the standby letter of credit or demand guarantee.
Abstract: This Article provides the legal perspective of the transaction of bank guarantees in the banking practice in Indonesia. It examines the provisions related to payment for bank guarantees by comparing the provisions related to payment for the bank garansi and that of the standby letter of credit or demand guarantee. The work shows that the bank garansi is dependent guaranty, whereas the standby letter of credit or demand guarantee is independent guaranty. The payment for the bank garansi is based on the actual default, whereas the payment for the standby letter of credit or demand guarantee is based on the statement of default. The primary obligation to pay for the bank garansi is that of the issuing bank or guaranteed party, while the primary obligation to pay for the standby letter of credit or demand guarantee is that of the issuing bank. And, as to the international counter guarantee, the conflicting provisions arise when it is asking the bank garansi as the domestic bank guarantee. The banks, companies and government agencies involved in the transaction of bank guarantees are encouraged to understand the implication of these findings and further prepare the appropriate solution.
TL;DR: In this paper , the authors examined the development of digital payment systems with the evolution of communication technologies, financial institutions and fintech companies, and analyzed the expected effects of developing payment systems and Fintech applications.
Abstract: Purpose- This study examines the development of digital payment systems with the evolution of communication technologies, financial institutions and fintech companies. Also, this study analyzes the expected effects of developing payment systems and fintech applications.
Methodology- The study defines different types of digital payment systems, compares general characteristics of digital payments, provides a timeline of developments for digital payment systems and compares most used digital payment applications.
Findings- The payments market is changing in line with consumer behavior.
Cashless economies, mobile banking, instant payments, digital commerce, and the growing impact of regulatory agencies are a few trends affecting the payments market. Contactless payments also make the payment process easier and more convenient for consumers who benefit from shorter lines, cash-on-hand issue elimination, and faster moving queues.The Asia-Pacific region is anticipated to witness significant growth in the market such as China and India. Digital and mobile wallets account for 58% of regional e-commerce payments in the region and are expected to reach 68.2% by 2023. The e-commerce sector is witnessing a spike in demand as consumers order essential items such as food and clothes through e-commerce websites, where most consumers prefer the digital mode of payment.Transition towards the cashless economy, emergence of new online financial institutions, a decentralized monetary governance with the adoption of blockchain and cryptocurrencies are envisioned. Advancements in payment technologies as well as digital payment systems adoption will create momentum and create further investments towards digitalization of monetary exchange.
Conclusion- It is concluded that evolution of digital payment systems will extend convenience, return, convergence, cross-border and time-limitless transaction. Inclusion of the unbanked is expected to drive growth and create new opportunities. There is a clear transition towards a cashless economy with the increasing adoption of digital payment systems by all spenders. Speed, privacy, convenience, security and decentralization will mean a wider inclusion for all global citizens; even including some unbanked population. Decentralization and blockchain will mean a blur in distribution of wealth, some money leaving the traditional banking systems. Digital payment systems provide a wide range of transaction options to its users; swiped credit cards, electronic checks, mobile wallets and contactless payment. By 2050s, the circulation of physical money is expected to vanish, leaving its place to virtual currencies changed on digital platforms.
Keywords: Digital payments, online transactions, digital wallets, e-payment, cashless economy
JEL Codes: M21, O33, O42
TL;DR: Zhang et al. as mentioned in this paper investigated the relationship between mobile payment and access to traditional bank services and found that consumers with better access to bank services are more likely to adopt mobile payment, however, after adoption, the less often the consumers visit banks because of distance or social constraints, the more they use mobile payment to complement bank services.
TL;DR: In this article , the authors investigated how attitude, security, trust, distrust, and intention aid the advancement of card payment usage in Mexico and established the interaction effects of trust and card payment advancement through gender.
Abstract: This study is rooted in trust theory to comprehensively understand the determinants of card payment usage in the context of Mexico. Thus, we employed a quantitative approach to investigate how attitude, security, trust, distrust, and intention aid the advancement of card payment usage in Mexico. Our findings show the direct and indirect determinants of card payment use and establish the interaction effects of trust and card payment advancement through gender. Consequently, this study moves the emerging mobile card payments literature forward by providing significant managerial, theoretical, and empirical contributions and assuaging feelings of distrust towards card payment services.
TL;DR: In this paper , the authors reviewed the effectiveness and efficiency of the application of SIPS-MUDA in providing payment information using a case study with a mixed-method approach and analyzed the data collected through interviews, observations, documentation, and surveys.
Abstract: Globalisation has a significant influence on the world of education. The emergence of technology supports the implementation of services in providing school financial accountability through a digital payment information system. Therefore, this research aims to review the effectiveness and efficiency of the application of SIPS-MUDA in providing payment information using a case study with a mixed-method approach. Data was collected through interviews, observations, documentation, and surveys. Meanwhile, the data were analysed using John Cresswell's model analysis technique. The results showed that the school payment information system effectively controlled misinformation and omission of human error factors related to the data. A survey of 46 parents also indicated that more than 80% agreed on the effectiveness and efficiency of the implementation of SIPS-MUDA. This was based on the validity of payment information, task completion, time behaviour, and customer satisfaction. In conclusion, the application of SIPS-MUDA can be categorised as very effective in providing school payment information services. Virtual accounts are a recommendation for manual input constraints, and schools can utilise bank CSR funds in cooperation.
01 Jan 2022
01 Jan 2022
TL;DR: In this article , the authors present an overview of challenges and prospects of mobile financial services in Bangladesh, focusing on some development strategies for policy holders, and propose how MFS operators solve the MFS-related problems, overcome the challenges, satisfy the customers, and increase their service.
Abstract: Microelectronic payment systems are speedily replacing the ordinary modes of payment. Electronic payment systems require online financial transactions that utilize some digital financial devices. They have allowed government, businesses, and financial institutions to propose a multiple of payment opportunities to their customers. These payment opportunities include charge account credit, master card, mobile banking, and automatic teller machine and payments bills through the mobile. Mobile financial services (MFS) performed a crucial role within the present online business and other business and financial services performed within the busy and pandemic world. The study is empirical in nature of MFS and its implications in Bangladesh. Finally, the study presents an overview of challenges and prospects of MFS in Bangladesh, focusing on some development strategies for policy holders. Researchers propose how MFS operators solve the MFS-related problems, overcome the challenges, satisfy the customers, and increase their service.
01 May 2022
TL;DR: This analysis reveals two new critical vulnerabilities that allow a malicious merchant to over-charge an unsuspecting customer and proposes fixes to the standard, which by now have been adopted by the W3C and Chrome, and proves that the fixed Web Payment APIs indeed satisfy strong security properties.
Abstract: Payment is an essential part of e-commerce. Merchants usually rely on third-parties, so-called payment processors, who take care of transferring the payment from the customer to the merchant. How a payment processor interacts with the customer and the merchant varies a lot. Each payment processor typically invents its own protocol that has to be integrated into the merchant’s application and provides the user with a new, potentially unknown and confusing user experience.Pushed by major companies, including Apple, Google, Master-card, and Visa, the W3C is currently developing a new set of standards to unify the online checkout process and “streamline the user’s payment experience”. The main idea is to integrate payment as a native functionality into web browsers, referred to as the Web Payment APIs. While this new checkout process will indeed be simple and convenient from an end-user perspective, the technical realization requires rather significant changes to browsers.Many major browsers, such as Chrome, Firefox, Edge, Safari, and Opera, already implement these new standards, and many payment processors, such as Google Pay, Apple Pay, or Stripe, support the use of Web Payment APIs for payments. The ecosystem is constantly growing, meaning that the Web Payment APIs will likely be used by millions of people worldwide.So far, there has been no in-depth security analysis of these new standards. In this paper, we present the first such analysis of the Web Payment APIs standards, a rigorous formal analysis. It is based on the Web Infrastructure Model (WIM), the most comprehensive model of the web infrastructure to date, which, among others, we extend to integrate the new payment functionality into the generic browser model.Our analysis reveals two new critical vulnerabilities that allow a malicious merchant to over-charge an unsuspecting customer. We have verified our attacks using the Chrome implementation and reported these problems to the W3C as well as the Chrome developers, who have acknowledged these problems. Moreover, we propose fixes to the standard, which by now have been adopted by the W3C and Chrome, and prove that the fixed Web Payment APIs indeed satisfy strong security properties.
TL;DR: In this paper , the authors tried to review the parameter of financial inclusion and find the impact of India Post Payment Bank (IPPB) in financial inclusion, and the results show that it will ignite the digital financial inclusion drive in isolated areas and erect an economy without cash based.
Abstract: Financial inclusion is nothing but providing the banking facilities to all at an affordable cost. It has been a vital challenge for Govt. of India and other financial regulators for a long time in spite of taking many initiatives. Derivation of payment banks emerged with the first budget speech of the Hon’ble Finance Minister; Mr. Arun Jaitley mentioned “RBI to create a framework for licensing small banks and other differentiated banks”. Considering socio-economic condition across the length and breadth of the country, Payment banks with special guidelines have been injected in the banking platform to be fully networked and technology driven in order to accelerate the periphery of financial inclusion by providing especially remittance services to the unbanked. This study attempts to review the parameter of financial inclusion and find the impact of India Post Payment Bank (IPPB) in financial inclusion. The present study is exploratory and descriptive in nature based on secondary data. The results show a positive impact on financial inclusion by IPPB as it leverages its Aadhaar enabled Payment System (AePS) services, interoperable doorstep banking services and huge network of postal employees. This can be forecasted that it will ignite the digital financial inclusion drive in isolated areas and erect an economy without cash based.
15 Feb 2022
TL;DR: In this article , the authors provide the context for the book and an overview of its the contents from the book's editors, as well as a discussion of the challenges and opportunities of fintech and crypto assets in the payments sector.
Abstract: Payments are ubiquitous. All but the most basic cash transactions are electronic, and most involve a web of service providers and supporting systems and infrastructure. These have brought great improvements in the accessibility, speed, and security of payments. However, unchecked the payments ecosystem also carries risks for its end users and broader economic and financial systems. This is why payment services are now regulated in many jurisdictions and subject to a growing body of law. Within this context, the rise of fintech and cryptoassets in the payments sector presents new opportunities and challenges for firms, regulators and policymakers, and the law is continually changing to keep pace with these developments. This chapter provides the context for the book and an overview of its the contents from the book's editors.
TL;DR: In this paper , a primary survey was conducted using a carefully designed questionnaire to assess how customers perceive the position of payment institutions, particularly in the Odisha city of Bhubaneswar.
Abstract: India s payment banking system was designed with the primary goal of promoting digital transactions and financial inclusion. After two to three years since they first entered the scene, the model has come under fire for several reasons. According to studies, payment banks face stiff competition from commercial banks and are hindered by the nature of their business. This study tries to assess how customers perceive the position of payment institutions. A primary survey was conducted using a carefully designed questionnaire. Users decisions to utilize the services of payment banks are influenced by privacy, security, and convenience. In India, the usage of the internet and mobile phones has increased significantly during the past ten years. The use of digital payment is growing exponentially as a result of rising internet usage, mobile phone penetration, and government initiatives like Digital India. However, there are still a lot of individuals out there who are unwilling to accept this financial system because they fear being taken advantage of. The current article will aid in determining how customers perceive payment banks, particularly in the Odisha city of Bhubaneswar.
KEY WORDS: Bank Customer, Banking, Payment Bank, ATM, E-banking