Digital payment systems in the financial sector of Ukraine: catalyst of development and instrument of transformation

Abstract

It is researched that digital payment systems (DPS) are a key catalyst for development and a tool for transforming the financial sector of Ukraine. The evolution of payment systems is examined, from the initial stage of using paper instruments to the current phase of intensive digitalization, characterized by the dominance of electronic payment systems and financial technologies. It has been determined that DPSs are complex integrated architectures that provide electronic financial transactions, are characterized by a high degree of speed, efficiency, security, and the ability to adapt in a dynamic technological environment. The structuralfunctional model of the payment system, consisting of institutional-legal, infrastructural-technological and economic blocks, and their system integration, is analyzed. It is established, noted that the digitalization of financial services in Ukraine is accompanied by the growing popularity of mobile payment applications, QR payments, contactless cards, online payments and cryptocurrencies. The research reveals a tendency to strengthen the cybersecurity of transactions using biometric authentication, blockchain technologies, and artificial intelligence. A comparative analysis of the development of DPS in countries around the world is carried out, which allows identifying key trends in the introduction of central bank digital currencies (CBDCs) and other digital payment innovations. It is stated that Ukraine demonstrates dynamic development in the field of digital finance, which is in line with global trends, despite geopolitical risks. The advantages and disadvantages and risks that impede the spread and use of DPS in the country's financial sector are outlined. This primarily concerns ethical issues, transparency, unfair or discriminatory use of DPS, as well as problems with confidentiality and personal data protection. It was found that DPSs have limited capabilities in working with unstructured data and interpreting complex contextual nuances. It is found that DPSs, despite the presence of cognitive limitations, are an effective tool in the context of the development of the national financial sector, ensuring an increase in its competitiveness and operational efficiency by optimizing the paradigm of customer interactivity, introducing improved risk management models and enhancing the analytical accuracy of predictive models of economic trends.