Transformation of the retail payment system in the context of digitalization

Abstract

Aim. The presented study aims to identify key factors that currently determine the spread and development of various payment methods and that will determine their development in the future.Tasks. The authors analyze the fundamental concepts of digital retail payment methods in Russian and foreign economics; identify factors affecting the emergence and development of payment methods; conduct a survey of students and teachers of economic universities in St. Petersburg regarding the payment methods they use and method choice factors; present results and formulate conclusions.Methods. This study uses general and specific scientific methods, as well as a formal-logical approach. In the course of the study, a survey was conducted with subsequent analysis of its results. Materials for analysis were collected in the major Russian city of St. Petersburg, where many significant financial organizations are located. Google Forms features were used to collect data. The obtained materials were analyzed and systematized.Results. The major factors determining the development of the retail payment system and its prospects in the context of widespread digitalization are identified. According to the authors, these include the minimization of the risks of using payment methods, the convenience of their use, nativeness — intuitive clarity, the efficiency of calculations, and financial benefits (the bank’s business partners, cashback, etc.). Other factors turned out to be less significant from the user perspective.Conclusions. Factors affecting consumer choice when using a particular payment method are usually considered together: the desire to mitigate risks is considered along with convenience, the speed of money transfer — with the possibility of obtaining benefits. The results can be useful for all financial institutions that develop new tools and services and create strategies for promoting retail instruments. Making allowance for user preferences will allow payment service providers to create products of higher quality and develop effective strategies for working in the payment services market.