Mathematical Interpretation of Global Competition between Payment Systems

• Main Authors: Xinyu Cai, Marko Milojevic, Denis Syromyatnikov, Anastasia Kurilova, Beata Ślusarczyk
• Format: Article
• Language: English
• Published: MDPI AG 2021-08-01
• Series: Mathematics
• Subjects: competitive dynamics; competitiveness; financial technology (FinTech); payment innovation; payment system
• Online Access: https://www.mdpi.com/2227-7390/9/17/2070

The present study seeks to present a mathematical interpretation of the perception of new entrants to the global payments market on whether FinTech’s innovations promote competitiveness in the market. The study also quantitatively evaluates the competitive trends observed in the global payments market. The sampling frame consists of 504 respondents across 28 countries. The study is based on the analysis of the survey results using SPSS Statistics and Stata. The survey addressed four groups of factors influencing the competitiveness of the payment system (i.e., ‘Costs’, ‘Service Channels’, ‘Privacy and Security’, ‘Quality and Efficiency’). The respondents believe that FinTech innovations have a strong positive effect on the payment system’s competitiveness (M = 4.32). The results of the present study may be of interest to specialists and researchers who deal with the competitive dynamics of the global payments business, with payment innovations, and with convergence and transformation of the payments industry.