Digital Payment Methods: Challenges And Opportunities

Abstract

The rapid evolution of digital technology has ushered in a new era of electronic payment methods, fundamentally altering the way transactions are conducted. This review highlights the emergence and adoption of various trends, including the widespread use of mobile wallets, the proliferation of peer-to-peer (P2P) transfers, the rapid adoption of contactless payments, the increasing interest in cryptocurrencies, and the exploration of central bank digital currencies (CBDCs). The growing acceptance of these trends is driven by factors such as enhanced convenience, improved security measures, and the expansion of financial inclusion efforts. However, challenges related to data security, regulatory frameworks, and interoperability must be addressed to fully harness the potential of these innovations. This study delves into the dynamic landscape of electronic payment methods, aiming to dissect the recent developments that are reshaping the way we conduct financial transactions. Additionally, we will investigate the potential challenges associated with these developments, including issues related to data security, privacy concerns, regulatory frameworks, and the potential reshaping of traditional banking systems.