Academic literature on the topic 'Cashless payment systems'

Before the introduction of the cashless policy by the Central Bank of Nigeria in 2011, the Nigerian economy was heavily cash-oriented in its transaction of goods and services contrary to the global trends. With the aid of paired data samples between 2007 and 2017, this study evaluates the impact of cashless policy on the Nigerian payment system. The operations of a cashless economy were assessed based on the use of Cheques, funds transfer channels and Automated Teller Machines (ATMs). Analysis of data showed that the volume and usage of cheques as a means of financial settlement has failed and was partially replaced by electronic payment systems. Banks are getting more involved in the use of interbank fund transfers rather than a cash settlement. It was also ascertained that the use of ATM’s as a means of financial intermediation is increasing. It is anticipated that the use of ATMs will become even more popular in Nigeria in the near future. To some extent, the outcome of the study has justified the implementation of the cashless policy initiative in Nigeria. However, the innovation and operations of the policy are not without its related limitations. There are various challenges associated with its practice, ranging from poor infrastructural facilities and difficulty in imbibing the e-payment culture due to illiteracy. Other socio-cultural factors that constitute an impediment include celebrations like weddings, birthdays and festivals. On such occasions, Nigerians prefer to ”display or spray raw cash’’ rather than issuing cheques. Thus, more effort needs to be put in place by the regulatory authority to re-orientate the masses and to encourage the use of E–payments channels, cheques, funds transfer options and, owning/ operating of bank accounts. This will give a further boost to the development of the Nigerian payment system.

Introduction. One of the most effective means to solve the acute problems of the modern stage of Ukraine's economic development is the rational organization of monetary circulation. The solution to this problem lies in the scope of the National Bank of Ukraine measures aimed, on the one hand, on improvement of cash circulation of money and, on the other hand, the development of cashless settlements. The purposeof the article is to study the current state of money circulation in Ukraine, identify the most significant problems and definition specific areas for improvement of the operation of banks with cash and the development of cashless payments, in particular, through bank payment cards. Results. The dynamics of money outside the banks, money supply, household income and gross domestic product (GDP) in Ukraine for the period of 2013-2017 has been analyzed. The dynamics of monetary indicators in Ukraine are analysed and the advantages of cash settlements are determined. The dynamics of general data on the number of participating banks of card payment systems, clients, the total number of payment cards and payment devices, types of payment cards issued by Ukrainian banks by types of information carriers, the amount and number of transactions using payment cards has been analyzed for the period 2013-2017. Conclusions. The advantages of cash settlements have been determined. The factors of increase of quantity of cash in circulation in the country are revealed. The components of cost of cash payments and the advantages of cashless payments for participants in monetary relations in the economy are determined. The priority task of the National Bank of Ukraine on reducing the volume of cash circulation, its streamlining and development of cashless settlements through the adoption of the Cashless economy project is disclosed. Based on the analysis of the development of monetary circulation in modern conditions, conclusions were made regarding the reduction of cash circulation and the development of cashless settlements in Ukraine.

The smooth functioning of payment systems is relevant for both the efficiency of the financial sector as well as the implementation of monetary policy operations. Therefore, payment systems are often provided by central banks. The characteristics of individual payment systems, such as increasing economies of scale, favour the development of a monopolistic situation. Therefore, we consider the role of a central bank acting as a monopolist and discuss possible welfare effects. Against the background of huge systemic risks, a central bank acting as an operator of an individual payment system is supposed to be the optimal solution. We illustrate our findings in the light of the role of the Bundesbank which has traditionally been operating its own payment systems.

The article analyzes tendencies of national payment systems development in the European Union and Russia: electronic and deposit money, bank cards, financial technologies in the field of retail payments. The author identifies factors that stimulate the development of cashless retail payments and the national payment card systems in the European Union, as well as the problems and prospects of this sector forming in Russia. Recommendations on the development of a competitive environment and financial technologies in the field of retail payments in Russia are proposed.