scholarly journals The Cost of Using Cash and Checks in Uruguay

2020 ◽  
Vol 9 (2) ◽  
pp. 109-129
Author(s):  
Marcelo Álvez ◽  
Rodrigo Lluberas ◽  
Jorge Ponce
Keyword(s):  
Private Sector ◽  
Cost Reduction ◽  
New Technologies ◽  
Real Economy ◽  
Electronic Payment ◽  
Payment Systems ◽  
Digital Currency ◽  
Payment Instruments ◽  
Challenges And Opportunities ◽  
The Cost

AbstractThe incorporation of new technologies to financial activities implies challenges and opportunities to financial authorities. They are reacting to the unavoidable trend towards digitalization of financial activities with the objective of preserving stable and efficient payment and financial systems. Uruguay, for instance, has promoted the use of electronic payment instruments and tested in the real economy a central bank digital currency called e-Peso. Digitalization of payment systems would reduce transaction costs by (partially) replacing less efficient means of payment, e.g. paper-cash and checks. In this paper we find that the cost of using cash in Uruguay is approximately 0.61% of GDP. Interestingly, 98.1% of this cost is borne by the private sector: banks and retailers 77.1% and households 21.0%. The cost of using checks is equivalent to 0.04% of GDP. Overall, replacing paper-cash and checks by other (electronic) means of payment would imply a transaction cost reduction for the private sector of the equivalent of up to 0.65% of GDP.

scholarly journals Stablecoins, Central Bank Digital Currencies and US Dollar Hegemony

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Luca Fantacci ◽  
Lucio Gobbi
Keyword(s):  
First Generation ◽  
International Monetary System ◽  
Global Scale ◽  
Electronic Payment ◽  
Payment Systems ◽  
Monetary System ◽  
Payment Instruments ◽  
The Us ◽  
Us Dollar ◽  
Main Flaw

Abstract Stablecoins are second generation cryptocurrencies, aimed at maintaining their value stable with respect to official currencies. The most famous example is perhaps represented by libra, the cryptocurrency announced by Facebook in 2019 and yet to be issued; the most widespread is tether, with a market capitalization of almost 10 billion dollars and a daily transaction volume of almost 50 billion dollars, which makes it the most used cryptocurrency. The diffusion of stablecoins is hardly surprising. By minimizing volatility – the main flaw of first generation cryptocurrencies, including bitcoin –, stablecoins are expected to play an even more important role on a global scale within a few years. Our contribution deals not with the economic, but specifically with the geopolitical factors that could foster the use of stablecoins for strategic and military purposes. In particular, we focus on how such payment instruments, together with other alternative electronic payment systems, could be used as a means to circumvent economic sanctions and ultimately as a challenge to the hegemony of the US dollar in the international monetary system.

scholarly journals REASONS OF APPEARANCE AND ASSESSMENT FEATURES OF RISK IN ELECTRONIC PAYMENT SYSTEMS

2018 ◽  
pp. 6-10
Keyword(s):  
High Speed ◽  
New Technologies ◽  
Service Providers ◽  
Electronic Payment ◽  
Payment Systems ◽  
Single Chain ◽  
Business World ◽  
Blockchain Technology ◽  
Secure Environment ◽  
High Level

In this era of digital technology, when many new technologies were aimed at integrating new technologies, the blockchain turned out to be the most effective. Blockchain is an innovation in the virtual business world for creating a payment gateway that allows you to create a more secure environment for users. If we are talking about blockchain wallets, they are mainly designed to quickly and securely manage online payments. In this regard, the demand and popularity of the development of blockchain collages is constantly increasing. This article development of electronic payment systems study is devoted. The article discusses the issues of modeling and risk assessment, approaches to risk prevention in the field of electronic payments. In particular, a new blockchain technology wallets is being considered, which will make it possible to prevent a number of risks in electronic payment systems, allow payments to be made at high speed, ensuring a high level of security. Ultimately, companies are looking for convenient, fast and reliable payment systems to streamline processes, and blockchain technology has the potential to make all this a reality - and therefore we expect companies to increasingly look for payment service providers who can help them with access to blockchain . This is likely to be particularly relevant in areas with high levels of exposure, such as multicurrency payments or multi-country payments, which relatively small payment gateways comprehensively cover even in the world, not connected by a single chain. Entering the partner market of other states also apply for legal audits.

scholarly journals EVOLUTION OF THE USE OF ELECTRONIC PAYMENT INSTRUMENTS: FINANCIAL AND LEGAL ASPECT

2020 ◽  
Vol 33 (20) ◽  
pp. 82-87
Author(s):  
M.A. Pozhydaeva
Keyword(s):  
Legal Aspect ◽  
Electronic Payment ◽  
Payment Systems ◽  
Electronic Money ◽  
Electronic Payments ◽  
Goods And Services ◽  
The United Kingdom ◽  
Payment Instruments ◽  
History Of ◽  
Xix Century

The evolution of the use of electronic payment instruments from a finance law position is analyzed in the article. In the context of the latest technology dynamic introduction in the field of payments, the beginning of the history of modern electronic payment instruments can be conditionally linked to the creation of the London Clearing House in 1775 in the United Kingdom and the subsequent active use in the calculation of promissory notes and cheques, as well as other payment documents on the basis of the clearing. At the same time, we propose to periodize the evolution of the use of electronic payment instruments in the calculation of foreign and domestic experience, which includes three main stages: Stage I (end of the XVIII century – end of the XIX century) formation of legal preconditions for the birth of the first electronic payment instruments in the form of promissory notes and cheques, as well as payment documents on the basis of clearing; Stage II (XX century) electrification of payment transactions with the support of their electronic means of payment (bank cards, mobile payment instruments), electronic purses for initiating payments, as well as the use of the first electronic money in order to pay for goods and services. Stage III (XXI Century – nowadays) digitization of payments, characterized by the active use of contactless chipped cards, contactless mobile instruments, electronic money, electronic payment means based on widespread electronic payments in the world of electronic payment ecosystems, such as PayPal (1998), Payoneer (2005), Skrill (2001), Stripe (2009), TransferWise (2010), etc., virtual money in the form of virtual currencies, Quick Response codes, and the introduction of digital currencies of central banks. The suggested periodization of the evolution of electronic payment instruments is based on historical facts, economic conditions, the introduction of the latest financial technologies, national preferences, and the legislation development in the field of payments. At the same time, the genesis specificity of the use of electronic payment instruments in Ukraine is conditioned by the imperfect special law on payment systems and the transfer of funds, which, unfortunately, does not meet the current international and European Union standards. Therefore, there is an urgent need to reform outdated domestic legislation in the field of payments by adopting a new Law of Ukraine «On Payment Services». Keywords: electronic payment instrument, electronic means of payment, use of electronic payment instruments, electronic payment instruments evolution, financе law.

Industrial Vicissitudes and Commercialization of Technology in Japan

1993 ◽  
Vol 5 (5) ◽  
pp. 416-419
Author(s):  
Kihachiro Nishikawa ◽  
Keyword(s):  
Quality Assurance ◽  
Research And Development ◽  
Cost Reduction ◽  
Technological Progress ◽  
New Technologies ◽  
Years Of Experience ◽  
Technical Design ◽  
Industrial Expansion ◽  
Difficult Challenge ◽  
The Cost

Through my forty years of experience as an electromechanical engineer, I have realized that the development of technical design has been one of the most important elements necessary for Japanese industrial expansion. The cost reduction of the products, along with quality assurance and functional improvements, is one of the main purposes of the technological progress; and it is a difficult challenge. To achieve this purpose, engineers are requested to design smaller, lighter products with fewer parts. In other words, engineering designers must adopt the new technologies in order to reach their target. This demand stimulates Research and Development (R&D) activity in many related fields.

scholarly journals ON VIRTUALIZATION OF PAYMENT SERVICES IN THE RUSSIAN NATIONAL PAYMENT SYSTEM

Banking law ◽  
2020 ◽  
Vol 6 ◽  
pp. 37-43
Author(s):  
Elena G. Khomenko ◽  
Keyword(s):  
New Technologies ◽  
Legal Regulation ◽  
Payment System ◽  
Payment Systems ◽  
Payment Mechanism ◽  
Money Transfer ◽  
Payment Services ◽  
Transfer Services ◽  
The Cost

Currently, there is a development of e-Commerce, the possibility of reducing the cost of transfer services, the ability to make payments anonymously, as well as the elimination of gaps in legislation regarding the legal regulation of new technologies used for several years — payment applications, payment services, etc. The author of the article describes how the “virtualization” of the national payment system affects all types of payment services and how it manifests itself in relation to the payment acceptance service, postal transfer service and money transfer service. Special attention is paid to the activities of payment systems and the organization of the remote payment mechanism.

scholarly journals Spanish financial institutions facing the challenge of digitalization: The case of payment systems

2021 ◽  
Vol 7 (2) ◽  
pp. 73-99
Author(s):  
Carlos Viñals Guitart
Keyword(s):  
Financial Institutions ◽  
Business Models ◽  
New Technologies ◽  
Technological Development ◽  
Financial Sector ◽  
Payment Systems ◽  
Challenges And Opportunities ◽  
New Business ◽  
New Challenges ◽  
New Business Models

Technological development has brought about major changes in all aspects and spheres of society. Among the various environments where technological applications have brought improvements and transformed the usual way of operating, we highlight the financial sector. Indeed, technology has substantially modified the processes and mechanisms on which its operation is based, especially in the area of payments, due to the need for reliability, security and immediacy to improve the way in which money is transmitted between the different agents that interact in it. This digitization of payment systems has been made possible by various factors, including the emergence of new business models and the emergence of large technology companies, as well as the application of new technologies that streamline payment processes. This has forced the financial sector and, specifically, financial institutions, the main drivers of the financial system, to accelerate innovation in the payments sector in order to face these new challenges. This paper analyses payment systems, how they work, the services they provide and the challenges and opportunities that can be identified as a result of technological innovation in the financial sector. It also presents the strategies being followed by Spanish financial institutions in terms of the development of new services and capabilities to cope with these changes.

scholarly journals Payment Systems in Ukraine and Risks of their Functioning

2021 ◽  
Vol 1 (516) ◽  
pp. 257-263
Author(s):  
N. V. Trusova ◽  
◽  
I. O. Chkan ◽  
Keyword(s):  
Financial Services ◽  
New Technologies ◽  
Daily Routine ◽  
Electronic Payment ◽  
Payment Systems ◽  
Current State ◽  
International Payment ◽  
National Bank ◽  
Remote Services ◽  
Financial Transactions

The article is aimed at defining the main aspects of the development of the current state of electronic payment systems in Ukraine and generalizing the main risks of violation of their functioning. The carried out research systematized information on the functioning of payment systems (both internal and international) and forms of payments in Ukraine (cash, non-cash – electronic). Among more than 80 domestic and international payment systems created by banks and non-bank institutions, the National Bank of Ukraine defines the following categories of importance of payment systems in Ukraine in order to ensure their continuous and stable functioning – systemically important, socially important and important. It is determined that in Ukraine at the legislative level, taking into account world trends, the payment infrastructure is being actively modernized, especially in the direction of protection of the rights of financial services consumers in the online space. Along with the advent of new technologies of electronic banking, opportunities to diversify the product range of remote services, atypical threats to traditional banking activities of both the internal and the external nature arise. The research systematizes the key risks inherent in functioning payment systems: legal, financial (total commercial risk, liquidity risk, commercial risk), settlement, operating, systemic. It is determined that the main risk in the banking and non-banking sectors is operational risk – the risk of loss of profit due to errors in the implementation of daily routine financial transactions. Prospects for further research in this direction are to find and implement effective mechanisms for minimizing or preventing risks of electronic payment systems.

scholarly journals THE CURRENT STATE OF FUNCTIONING OF NATIONAL PAYMENT SYSTEMS

2021 ◽  
Author(s):  
Nataliia Polishchuk ◽  
Iryna Lobacheva ◽  
Olena Musiienko
Keyword(s):  
Payment System ◽  
Electronic Payment ◽  
Payment Systems ◽  
Current State ◽  
Banking Institutions ◽  
Money Transfer ◽  
Definition Of ◽  
Card Payment ◽  
The Cost ◽  
Electronic Payment System

The article presents the theoretical aspects of the payment system, clarifies the definition of the national payment system of a complex and interconnected set of payment and technical elements, each of which contributes to the efficient functioning of both the financial sector and the national economy as a whole. The classification features according to which payment systems are classified are generalized and their types are given. The main tasks of payment systems functioning are outlined. The components of the payment system of Ukraine are considered. It is proved that the non-cash payment system is designed to minimize the cost of issuing cash and reduce the cost of its maintenance, collection, and recalculation. It is highlighted that the main purpose of creating payment systems is to reduce the cash supply. The modern basic requirements to payment systems are defined. The current payment systems in Ukraine are analyzed, among which: the national electronic payment system (EPS), created by the National Bank of Ukraine, the National Payment System “Ukrainian Payment Space”, 10 intrabank payment systems, 2 money transfer systems, 11 money transfer systems, 1 system settlements and 1 card system created by non-banking institutions, as well as 8 money transfer systems and 4 card payment systems created by non-residents, as well as international payment systems, which include 5 money transfer systems created by Ukrainian banks and 4 money transfer systems created by non-banking institutions . The current state of operations of Ukrainian banks with electronic money is studied. The basic requirements for national payment systems are given. Measures to increase the level of security of the national payment system of Ukraine are outlined. Recommendations for the development of the electronic payment system of Ukraine are presented. Special attention needs to be paid to the development of the national payment system of Ukraine, which depends on the effectively implemented innovations, which consist in the application and expansion of non-cash forms of payment and guarantee of the electronic payment system.

scholarly journals Evolution of the use of electronic payment instruments: financial and legal aspect

2020 ◽  
pp. 82-87
Author(s):  
M.A. Pozhydaeva
Keyword(s):  
Legal Aspect ◽  
Electronic Payment ◽  
Payment Systems ◽  
Electronic Money ◽  
Electronic Payments ◽  
Goods And Services ◽  
The United Kingdom ◽  
Payment Instruments ◽  
History Of ◽  
Xix Century

The evolution of the use of electronic payment instruments from a finance law position is analyzed in the article. In the context of the latest technology dynamic introduction in the field of payments, the beginning of the history of modern electronic payment instruments can be conditionally linked to the creation of the London Clearing House in 1775 in the United Kingdom and the subsequent active use in the calculation of promissory notes and cheques, as well as other payment documents on the basis of clearing. At the same time, we propose to periodize the evolution of the use of electronic payment instruments in the calculation of foreign and domestic experience, which includes three main stages: Stage I (end of the XVIII century – end of the XIX century) formation of legal preconditions for the birth of the first electronic payment instruments in the form of promissory notes and cheques, as well as payment documents on the basis of clearing; Stage II (XX century) electronization of payment transactions with the support of their electronic means of payment (bank cards, mobile payment instruments), electronic purses for initiating payments, as well as the use of the first electronic money in order to pay for goods and services. Stage III (XXI Century – nowadays) digitization of payments, characterized by the active use of contactless chipped cards, contactless mobile instruments, electronic money, electronic payment means based on widespread electronic payments in the world of electronic payment ecosystems, such as PayPal (1998), Payoneer (2005), Skrill (2001), Stripe (2009), TransferWise (2010), etc., virtual money in the form of virtual currencies, Quick Response codes, and the introduction of digital currencies of central banks. The suggested periodization of the evolution of electronic payment instruments is based on historical facts, economic conditions, the introduction of the latest financial technologies, national preferences and the legislation development in the field of payments. At the same time, the genesis specificity of the use of electronic payment instruments in Ukraine is conditioned by the imperfect special law on payment systems and the transfer of funds, which, unfortunately, does not meet the current international and European Union standards. Therefore, there is an urgent need to reform outdated domestic legislation in the field of payments by adopting a new Law of Ukraine «On Payment Services».

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