DIGITAL TRANSFORMATION TRENDS IN PAYMENT SYSTEMS

Abstract

The focus of the research presented in this paper is on the digital transformation trends in payment systems, which are expected to initiate the dynamics of the payment ecosystem in the near future. The current trends in the payment industry are analyzed and the most important ones identified. The latest data provided by relevant national and international institutions were used in the analysis of these trends. This research paper presents some challenges the payment systems face in the new age of technological innovation and digitalization. Current trends in payment and financial systems are focused on the following issues: the expansion of payment options, the demand to place higher emphasis on data infrastructure and security, and the adoption of machine learning and artificial intelligence technologies. This research paper stresses that banks and regulatory authorities are encouraging migration of payments towards the digital sphere, which can lead to a reduction of transaction costs for banks and, consequently, to the reduction of operational costs. The results of the survey show that changes, generated by ICT development and digital transformations in the business sector, are requiring the payment systems to be adjusted to the demands of the "digital age"..