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Assessment of the efficiency of use of EPS by business

Author

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  • Volvach Olena

    (Taras Shevchenko National University of Kyiv, Kyiv, Ukraine)

Abstract

As the world became more digitalized thanks to the Internet, it led to the creation of Electronic Payment Systems that are now used to seeing all over the world, but there is a need for estimation the return on development and implementation of EPSs. The research goal is to develop an approach based on optimization modeling for the assessment of the efficiency of implementation and the use of electronic payment systems by Ukrainian and international businesses for their day-by-day operations. The article also analyzed different classifications of EPS and determined several types of methodology for the evaluation of the effectiveness of the EPS (absolute and relative to business results and costs). Using the optimization model and system analysis, the authors proposed the algorithm for the estimation of profit from EPS implementation (both separate EPS or portfolio of EPSs) and make an experiment for one of the EPS for the period of 2023-2026. The optimization model includes revenue from EPS, as well as salary, rent, and infrastructure costs, which helps to improve the results of EPS implementation by adapting of transaction’s tariff. Authors also described the process of solving optimization task for determining effective tariff per 1 transaction, taking into account marketing information.

Suggested Citation

  • Volvach Olena, 2023. "Assessment of the efficiency of use of EPS by business," Economics, Sciendo, vol. 11(1), pages 233-249, June.
    • Handle: RePEc:vrs:econom:v:11:y:2023:i:1:p:233-249:n:2
    DOI: 10.2478/eoik-2023-0003
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    References listed on IDEAS

    as
    1. Emrah Oney & Gizem Oksuzoglu Guven & Wajid Hussain Rizvi, 2017. "The determinants of electronic payment systems usage from consumers’ perspective," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 30(1), pages 394-415, January.
    2. Iviane Ramos-de-Luna & Francisco Montoro-Ríos & Francisco Liébana-Cabanillas, 2016. "Determinants of the intention to use NFC technology as a payment system: an acceptance model approach," Information Systems and e-Business Management, Springer, vol. 14(2), pages 293-314, May.
    3. Humphrey, David B & Kim, Moshe & Vale, Bent, 2001. "Realizing the Gains from Electronic Payments: Costs, Pricing, and Payment Choice," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(2), pages 216-234, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    electronic payment systems; efficiency; optimization; evaluation; implementation;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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