Introduction
Modern economies rely heavily on developed payment infrastructure. When people have reliable and convenient payment tools with low commissions, they actively use banking services, and transaction volumes grow. This leads to reduced shadow economy activities and increased consumer demand as banks can better assess credit risks.
Payment Industry Transformation
From Cash to Digital Payments
Cash share in global point-of-sale turnover has decreased by 12 percentage points to 18% over the past five years. Regional differences are significant:
- North America: average cash share – 11%
- Asia: 16%
- Europe: 26%
- Middle East and Africa: decrease from 70% in 2019 to 44% in 2021
National Payment Systems Development
Among the 75 largest economies, 22 countries have developed their own payment systems. Most successful examples:
- China (UnionPay)
- India
- Iran (Shetab)
- Brazil
- USA
- Philippines (BancNet)
- Indonesia
Innovative Payment Ecosystems
WeChat and Alipay
Chinese payment giants WeChat Pay and Alipay have transformed the payment market:
- WeChat Pay, integrated into popular WeChat messenger, serves over 800 million active users
- Alipay, part of Alibaba Group ecosystem, offers comprehensive financial services
- Both systems use QR codes as primary payment method
- Created complete financial ecosystems including lending, investments, and insurance
- Led to near-complete elimination of cash in major Chinese cities
OVO in Indonesia
OVO demonstrates successful development model in emerging economy:
- Over 115 million users
- Integration with popular delivery and taxi services
- Development of microlending for small businesses
- Partnership with traditional banks to expand financial inclusion
Successful Transformation Cases
Kazakhstan: Kaspi Revolution
Kaspi Bank revolutionized Kazakhstan’s payment industry:
- Captured 51% of POS terminal market in two years
- Growth in cashless payments from 66% to 84%
- Successful QR payment implementation in country with high bank card penetration
- Creation of super-app combining payments, marketplace, and financial services
Singapore: Government Initiative
Singapore government actively promotes QR payments:
- Single QR code standard for all banks
- Government subsidization of POS terminals
- Over 30% of population regularly uses QR payments
- Integration with government services
Bank Card Evolution
Card Types and Features
Debit Cards
- Linked to current account
- Instant access to funds
- Often include overdraft
- Growing contactless payment popularity
Credit Cards
- Renewable credit line
- Grace period
- Loyalty programs and cashback
- Enhanced online purchase protection
Digital Cards
- Instant issuance
- Mobile wallet integration
- Enhanced security through tokenization
- Multiple account linking capability
Virtual and Dynamic Cards
- Digital-only existence
- Unique number generation for each transaction
- Enhanced online payment security
- Protection against skimming and data theft
- Limit and restriction settings
- Integration with secure payment systems (3D-Secure)
- Instant blocking after use
- Tokenization technology support
- Primary card linking capability
Biometric Technologies in Payments
Current State
- Biometric authentication in mobile devices
- Fingerprint verification for transactions
- Facial recognition for online payments
- Voice biometrics in banking applications
Innovative Solutions
- Cards with built-in fingerprint scanner
- Facial recognition systems in ATMs
- Biometric payment at points of sale
- Multimodal biometric authentication
Advantages
- Enhanced transaction security
- Forgery and theft prevention
- User convenience
- Transaction speed
- No PIN codes required
Demographic Trends
Age-Based Usage Patterns
- 18-24: Maximum mobile payment and digital wallet usage (85%)
- 25-34: Active use of all digital payment instruments (80%)
- 35-44: Balanced use of cards and digital payments (70%)
- 45-54: Predominantly card payments and online banking (60%)
- 55+: Traditional bank cards and cash (40% digital payments)
Generation Behavior
- Generation Z (under 24):
- Prefer mobile payments
- Active P2P transfer users
- Interest in cryptocurrencies
- Millennials (25-40):
- Maximum payment instrument diversity
- High interest in cashback programs
- Active digital bank usage
- Generation X (41-56):
- Gradual transition to digital payments
- Combination of traditional and new methods
- Increased security focus
Future of Payment Systems
Development Trends
- Transition to open banking platforms
- Cross-border payment system development
- Biometric authentication implementation
- Central bank digital currency integration
Promising Directions
- Cross-border payment development
- Regional payment union creation
- Artificial intelligence technology implementation
- Blockchain-based smart contract development
Conclusion
The future of payment systems lies in integrated solutions combining various financial services into unified ecosystems. Success is determined by the ability to create convenient and secure payment solutions considering local market specifics and user needs. Cross-border payment system development and unified standards for international operations play a crucial role.