Improving the level of economic effectiveness of electronic payment services in a global digitan economy

Abstract

Digitalization ensured a revolutionary change in the ways of delivering and consuming financial services, in particular payment services. One of the key prerequisites for the sustainable operation and development of e-payment systems is the achievement of a high level of effectiveness of e-payment services (EPS), which occurs in the global context of building a digital economy. The goal of the research is to develop the conceptual framework and identify the key areas for improving the economic effectiveness of e-payment services in a global digital economy. The theoretical framework of the research includes: the best practices in the sphere of digital technology, digitalization and digital transformations; a concept of digital economy, determining its structure, technological "core" and contours, and functional features. An enhanced role of the Internet as a general economic infrastructure, being the key for the global quality of digital economy, has been taken into consideration. The methodology of the research is based on an evolutionary approach and includes: historical, systemic and structural, functional, and comparative analysis. The results of the research are represented by a number of theoretical, conceptual and practical provisions. Above all, the essence of FinTech was clarified and the key areas of its development were identified; the crucial importance of the problem of economic effectiveness for this sphere of digital technology was substantiated. The paper identified the essence and specific features of PayTech, which transformed the ways to carry out payment transactions and provide the respective services. The purpose and key components of e-payment systems were clarified as well as the specific features to ensure EPS in various aspects. The attention was drawn to the issues of effective EPS in terms of the provider (related to ensuring mass retail payments using Internet and mobile technologies). Taking into consideration different description models of payment operation, the emphasis was laid on the technological model and functionality of e-payment systems, which demonstrated an integrated approach to achieving the high quality and effectiveness of EPS. Taking into account the external and internal prerequisites to accomplish this, the following strategic areas for improving the economic effectiveness of EPS were identified: 1) enhancing the risk management quality; 2) innovation development; 3) development of the ecosystem of EPS delivery. Practical recommendations on the intensification of e-payment systems include: governmental support activities for EPS providers; proposals on enhancing the innovative function of regulatory "sandboxes" and expanding the use of the technologies which ensure the compliance with regulatory standards (SupTech and RegTech). Value/originality: the paper specified and identified the focus areas and activities to improve the economic effectiveness of EPS delivery, which is of strategic importance in the global digital economy, being of particular value for future studies.