Global challenges and major trajectories of payment systems evolution
Abstract
Payment systems, as one of the areas of global financial digital transformation, have not been studied thoroughly and objectively. Some researchers believe that payment services make up a substantial share of all fintech projects. This is determined by the relative simplicity of payments as financial products [1]. First, fintech companies engaged in payments business are able to expand their customer base relatively fast and at low cost. Second, today’s technological development in payments enables constant introduction of new innovation-driven features and capabilities. Third, payments are financial services that are most popular with both legal entities and individuals. For instance, today cross-border payments are viewed as one of the key tools of sanctions pressure [2].
With these factors in mind, the objective of this article is to provide an overview of current trends and challenges in the development of the global payment industry.
Keywords
payment systems,
sanctions,
stablecoin,
digital currency regulation,
cross-border payments,
emission quotas,
national regulators
Supporting agencies: The study was not sponsored
About the Authors
I. B. Turuev
MGIMO University
Russian Federation
Russian Federation
Igor B. Turuev, Doctorate degree in Economics, Professor
Department of International Finance
119454
76, av. Vernadsky
Moscow
RSCI Author ID: 455810
Scopus Author ID: 57466995400
S. Y. Pertseva
MGIMO University
Russian Federation
Russian Federation
Svetlana Y. Pertseva, PhD in Economics, Associate Professor
Department of International Finance
119454
76, av. Vernadsky
Moscow
RSCI Author ID: 810669
Scopus Author ID: 58176139000
Researcher ID (WoS): E-5071-2017
References
1. Turuev I. B., Pertseva S. Y. Payment systems in a new reality. M.: Aspect Press, 2023, p. 216.
2. Pertseva S. Y. Transformation of the Russian payment system under sanctions // Bulletin of the Altai Academy of Economics and Law. Saratov. 2022. № 10-2, pp. 291–298.
3. Multiple CBDC (mCBDC) Bridge, Bank for International Settlements, available at: https://www.bis.org/about/bisih/topics/cbdc/mcbdc_bridge.htm (Accessed 7 April 2023).
4. US dollar funding: an international perspective (2020), Bank for International Settlements, p. 81.
5. Federally Chartered Banks and Thrifts May Participate in Independent Node Verification Networks and Use Stablecoins for Payment Activities, The Office of the Comptroller of the Currency, available at: https://ncrc.org/occ-federally-chartered-banks-and-thrifts-may-participate-in-independent-node-verification-networks-and-use-stablecoins-for-payment-activities/ (Accessed 9 April 2023).
6. Report on Stablecoins (2021), U. S. President’s Working Group on Financial Markets, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, p. 23.
7. Global Financial Stability Report: COVID-19, Crypto, and Climate: Navigating Challenging Transitions (2021), The International Monetary Fund, pp. 41–57.
8. Payments Are Eating the World (2021), J. P. Morgan, U. S. Department of the Treasury, p. 7.
9. Regulation, Supervision and Oversight of «Global Stablecoin» Arrangements. Final Report and High-Level Recommendations (2020), Stability Board, p. 69.
10. Regulation, Supervision and Oversight of «Global Stablecoin» Arrangements. Final Report and High-Level Recommendations (2021), The Financial Stability Board, p. 26.
11. Fintech. On the brink of further disruption (2020), Deloitte, available at: https://ncrc.org/occ-federally-chartered-banks-and-thrifts-may-participate-in-independent-node-verification-networks-and-use-stablecoins-for-payment-activities/ (Accessed 14 April 2023).
12. Future of Digital Payments (2019), Infosys, available at: https://www.infosys.com/services/digital-interaction/documents/future-digital-payments.pdf (Accessed 17 April 2023).
13. Global Payment Cards Data and Forecasts to 2020. Press Release (2020), Retail Banking Research, available at: https://www.rbrlondon.com/wp-content/uploads/2020/10/GC25_Press_Release_071020.pdf (Accessed 19 April 2023).
14. Unlocking $120 Billion Value in Cross-Border Payments. How Banks Can Leverage Central Bank Digital Currencies for Corporates (2021), Oliver Wyman and J. P. Morgan, p. 34.
15. The 2020 McKinsey Global Payments Report, Global Banking Practice (2020), McKinsey & Company, p. 37.
16. The 2021 McKinsey Global Payments Report (2021), McKinsey & Company, p. 37.
17. The Future of Digital Payments. Choices To Consider for a New Ecosystem (2019), Deloitte, available at: https://citvericash.com/future-of-digital-payments-ecosystem/ (Accessed 20 April 2023).
18. Pertseva S. Yu., Sribny A. Achievements of the FinTech Industry as a Factor of Economic Growth. // Bulletin of the Altai Academy of Economics and Law. Saratov. 2022. №8-2, pp. 273–284.
Review
For citations:
Turuev I.B., Pertseva S.Y. Global challenges and major trajectories of payment systems evolution. International Business. 2023;(1 (3)):14-32.
Views:
385
Email this article 