THE IMPACT OF DIGITAL PAYMENT TECHNOLOGIES ON RETAIL BUSINESS
Abstract
The digital payments sector is experiencing consistent growth due to the advancement of e-commerce, the proliferation of mobile financial services, and the rising demand for contactless technologies. The active expansion of fintech companies and the implementation of blockchain solutions in payment systems contribute to the further development of the market. The dynamic progress of this industry is driven by the convenience and efficiency of innovative financial tools, as well as their increasing popularity among consumers. The purpose of this article is to identify and substantiate current trends in the development of the payment sector and to determine the potential impact of its digitalization on the operations of retail business structures. The study highlights key directions in the evolution of payment technologies, including the reduction in cash transactions, the proliferation of digital mobile wallets, digital currencies and transfers, the adoption of A2A payments, and BNPL models. Based on an analysis of global digital transaction volumes, the number of digital payment users, and forecasts of their dynamics over the next five years, it is established that the role of digital payment instruments will continue to strengthen. Their development is expected to yield several positive effects for the retail business, such as increased revenue transparency, reduced transaction costs, improved loyalty programs and consumer behavior analysis, the introduction of advanced credit instruments, and enhanced customer loyalty. However, the expansion of digital payment instruments is associated with several challenges. These include the need for significant investments in technology and infrastructure, ongoing software maintenance, protection of users' personal data from cyber threats, potential increases in service fees for digital payment solutions, and regulatory risks arising from the uncertain legal status of digital currencies in certain jurisdictions, including Ukraine. The practical significance of this study lies in identifying strategies for retail businesses to adapt to innovations in the payment sector to enhance the efficiency of financial flow management.
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