IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v9y2021i17p2070-d623026.html
   My bibliography  Save this article

Mathematical Interpretation of Global Competition between Payment Systems

Author

Listed:
  • Xinyu Cai

    (School of Labor Economics, Capital University of Economics and Business, Beijing 100070, China)

  • Marko Milojevic

    (Department of Accounting and Audit, Singidunum University, 11000 Belgrade, Serbia)

  • Denis Syromyatnikov

    (Department of Economy and Foreign Economic Activity, North-Caucasus Federal University, 355035 Stavropol, Russia)

  • Anastasia Kurilova

    (Department of Masters Degree Programs (Business Programs), Togliatti State University, 445051 Togliatty, Russia)

  • Beata Ślusarczyk

    (The Management Faculty, Czestochowa University of Technology, 42-201 Czestochowa, Poland
    TRADE Research Entity, North-West University, Private Bag X1290, Potchefstroom 2520, South Africa)

Abstract

The present study seeks to present a mathematical interpretation of the perception of new entrants to the global payments market on whether FinTech’s innovations promote competitiveness in the market. The study also quantitatively evaluates the competitive trends observed in the global payments market. The sampling frame consists of 504 respondents across 28 countries. The study is based on the analysis of the survey results using SPSS Statistics and Stata. The survey addressed four groups of factors influencing the competitiveness of the payment system (i.e., ‘Costs’, ‘Service Channels’, ‘Privacy and Security’, ‘Quality and Efficiency’). The respondents believe that FinTech innovations have a strong positive effect on the payment system’s competitiveness (M = 4.32). The results of the present study may be of interest to specialists and researchers who deal with the competitive dynamics of the global payments business, with payment innovations, and with convergence and transformation of the payments industry.

Suggested Citation

  • Xinyu Cai & Marko Milojevic & Denis Syromyatnikov & Anastasia Kurilova & Beata Ślusarczyk, 2021. "Mathematical Interpretation of Global Competition between Payment Systems," Mathematics, MDPI, vol. 9(17), pages 1-18, August.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:17:p:2070-:d:623026
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/9/17/2070/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/9/17/2070/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marc BOURREAU & Tommaso VALLETTI, 2015. "Competition and Interoperability in Mobile Money Platform Markets: What Works and What Doesn’t?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(99), pages 11-32, 3rd quart.
    2. Champ,Bruce & Freeman,Scott & Haslag,Joseph, 2016. "Modeling Monetary Economies," Cambridge Books, Cambridge University Press, number 9781316508671.
    3. Mirzaei, Ali & Moore, Tomoe, 2014. "What are the driving forces of bank competition across different income groups of countries?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 32(C), pages 38-71.
    4. Dong He & Ross B Leckow & Vikram Haksar & Tommaso Mancini Griffoli & Nigel Jenkinson & Mikari Kashima & Tanai Khiaonarong & Celine Rochon & Hervé Tourpe, 2017. "Fintech and Financial Services; Initial Considerations," IMF Staff Discussion Notes 17/05, International Monetary Fund.
    5. Jan Boone & Jan Ours & Henry Wiel, 2013. "When is the Price Cost Margin a Safe Way to Measure Changes in Competition?," De Economist, Springer, vol. 161(1), pages 45-67, March.
    6. Rainer Alt & Roman Beck & Martin T. Smits, 2018. "FinTech and the transformation of the financial industry," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 235-243, August.
    7. Amr Hosny, 2020. "Remittance Concentration and Volatility: Evidence from 72 Developing Countries," International Economic Journal, Taylor & Francis Journals, vol. 34(4), pages 553-570, October.
    8. Stefano Ugolini, 2017. "The Payment System," Palgrave Studies in Economic History, in: The Evolution of Central Banking: Theory and History, chapter 2, pages 21-100, Palgrave Macmillan.
    9. Agustín Carstens, 2020. "Shaping the future of payments," BIS Quarterly Review, Bank for International Settlements, March.
    10. Inna Romānova & Marina Kudinska, 2016. "Banking and Fintech: A Challenge or Opportunity?," Contemporary Studies in Economic and Financial Analysis, in: Contemporary Issues in Finance: Current Challenges from Across Europe, volume 98, pages 21-35, Emerald Group Publishing Limited.
    11. Mr. Dong He & Mr. Ross B Leckow & Mr. V. Haksar & Mr. Tommaso Mancini-Griffoli & Nigel Jenkinson & Ms. Mikari Kashima & Mr. Tanai Khiaonarong & Ms. Celine Rochon & Hervé Tourpe, 2017. "Fintech and Financial Services: Initial Considerations," IMF Staff Discussion Notes 2017/005, International Monetary Fund.
    12. Jamil Hammoud & Rima M. Bizri & Ibrahim El Baba, 2018. "The Impact of E-Banking Service Quality on Customer Satisfaction: Evidence From the Lebanese Banking Sector," SAGE Open, , vol. 8(3), pages 21582440187, July.
    13. Carbó, Santiago & Humphrey, David & Maudos, Joaquín & Molyneux, Philip, 2009. "Cross-country comparisons of competition and pricing power in European banking," Journal of International Money and Finance, Elsevier, vol. 28(1), pages 115-134, February.
    14. Allen N. Berger & Leora F. Klapper & Rima Turk-Ariss, 2017. "Bank competition and financial stability," Chapters, in: Jacob A. Bikker & Laura Spierdijk (ed.), Handbook of Competition in Banking and Finance, chapter 10, pages 185-204, Edward Elgar Publishing.
    15. Jürgen Bott & Udo Milkau, 2016. "A Market for Payments — Payment Choice in the 21st Century Digital Economy," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Jakub Górka (ed.), Transforming Payment Systems in Europe, chapter 1, pages 1-27, Palgrave Macmillan.
    16. Stefano Ugolini, 2017. "The Evolution of Central Banking: Theory and History," Palgrave Studies in Economic History, Palgrave Macmillan, number 978-1-137-48525-0, December.
    17. Borys Kormych & Tetiana Averochkina & Vitalii Gaverskyi, 2020. "The public administration of territorial seas: Ukrainian case," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 20(3), pages 577-595, September.
    18. Francisco Liébana-Cabanillas & Inmaculada García-Maroto & Francisco Muñoz-Leiva & Iviane Ramos-de-Luna, 2020. "Mobile Payment Adoption in the Age of Digital Transformation: The Case of Apple Pay," Sustainability, MDPI, vol. 12(13), pages 1-15, July.
    19. George Gardner & Andrew Stone, 2009. "Competition Between Payment Systems," RBA Research Discussion Papers rdp2009-02, Reserve Bank of Australia.
    20. Inna Romanova & Simon Grima & Jonathan Spiteri & Marina Kudinska, 2018. "The Payment Services Directive II and Competitiveness: The Perspective of European Fintech Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 3-22.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Octavian Dospinescu, 2022. "Business and Economics Mathematics," Mathematics, MDPI, vol. 10(20), pages 1-3, October.
    2. Patrizia Gazzola & Daniele Grechi & Ilaria Martinelli & Roberta Pezzetti, 2022. "The Innovation of the Cashierless Store: A Preliminary Analysis in Italy," Sustainability, MDPI, vol. 14(4), pages 1-16, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paola Argüello Kalpa & María Alexandra Ortiz Cabrera, 2020. "Colección Enrique Low Murtra. Tomo XIII, Derecho económico," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1274, August.
    2. Iryna Okolelova & Jacob A. Bikker, 2022. "The single supervisory mechanism: Competitive implications for the banking sectors in the euro area," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 1818-1835, April.
    3. Iryna Okolelova & Jacob A. Bikker, 2022. "The single supervisory mechanism: Competitive implications for the banking sectors in the euro area," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 1818-1835, April.
    4. Samarasinghe, Ama & Uylangco, Katherine, 2021. "An examination of the effect of stock market liquidity on bank market power," International Review of Financial Analysis, Elsevier, vol. 77(C).
    5. Fred Huibers, 2021. "Regulatory Response to the Rise of Fintech Credit in The Netherlands," JRFM, MDPI, vol. 14(8), pages 1-12, August.
    6. Croutzet, Alexandre & Dabbous, Amal, 2021. "Do FinTech trigger renewable energy use? Evidence from OECD countries," Renewable Energy, Elsevier, vol. 179(C), pages 1608-1617.
    7. Khan, Muhammad Zubair & Khan, Zafir Ullah & Hameed, Affan & Zada, Shehnaz Sahib, 2021. "On the upside or flipside: Where is venture capital positioned in the era of digital disruptions?," Technology in Society, Elsevier, vol. 65(C).
    8. Li, Jianping & Li, Jingyu & Zhu, Xiaoqian & Yao, Yinhong & Casu, Barbara, 2020. "Risk spillovers between FinTech and traditional financial institutions: Evidence from the U.S," International Review of Financial Analysis, Elsevier, vol. 71(C).
    9. Risfandy, Tastaftiyan & Tarazi, Amine & Trinugroho, Irwan, 2022. "Competition in dual markets: Implications for banking system stability," Global Finance Journal, Elsevier, vol. 52(C).
    10. Ongo Nkoa, Bruno Emmanuel & Song, Jacques Simon, 2020. "Does institutional quality affect financial inclusion in Africa? A panel data analysis," Economic Systems, Elsevier, vol. 44(4).
    11. Uddin, Md Hamid & Mollah, Sabur & Islam, Nazrul & Ali, Md Hakim, 2023. "Does digital transformation matter for operational risk exposure?," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    12. Tai-Hsin Huang & Nan-Hung Liu & Subal C. Kumbhakar, 2018. "Joint estimation of the Lerner index and cost efficiency using copula methods," Empirical Economics, Springer, vol. 54(2), pages 799-822, March.
    13. Yang, Jun & Shao, Hanhua, 2016. "Impact of bank competition on the bank lending channel of monetary transmission: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 468-481.
    14. Fungáčová, Zuzana & Solanko, Laura & Weill, Laurent, 2013. "Does bank competition influence the lending channel in the euro area," BOFIT Discussion Papers 17/2013, Bank of Finland, Institute for Economies in Transition.
    15. Fungáčová, Zuzana & Weill, Laurent, 2009. "How market power influences bank failures : Evidence from Russia," BOFIT Discussion Papers 12/2009, Bank of Finland, Institute for Economies in Transition.
    16. Ion Lapteacru, 2016. "Convergence of bank competition in Central and Eastern European countries: Does ownership matter?," Working Papers hal-01301853, HAL.
    17. Bogdan Capraru & Nicoleta-Livia Pintilie, 2017. "Assessing competition in the European Union banking sector," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 9(1), pages 007-026, June.
    18. Faris Alshubiri, 2022. "The financial competition, concentration and structure of financial performance nexus in the financial sector of Oman," Economic Change and Restructuring, Springer, vol. 55(2), pages 681-714, May.
    19. Emmanuel C. Mamatzakis & Anh N. Vu, 2017. "The interplay between quantitative easing and risk: the case of the Japanese banking," Working Papers 226, Bank of Greece.
    20. Ms. Inutu Lukonga, 2018. "Fintech, Inclusive Growth and Cyber Risks: Focus on the MENAP and CCA Regions," IMF Working Papers 2018/201, International Monetary Fund.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:9:y:2021:i:17:p:2070-:d:623026. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.