e - ISBN : 978-93-6252-874-2Publisher: Iterative International Publishers (IIP), Selfypage Developers Pvt Ltd.DOI: https://www.doi.org/10.58532/DPLME1
AIM & SCOPE
In recent years, the landscape of financial transactions has undergone a profound transformation, especially in emerging economies where digital payments are reshaping the way people interact with money. The convergence of technological advancements, increasing smartphone penetration, and innovative financial solutions has catalysed the rapid adoption of digital payments. This monograph book, "The Digital Payment Landscape in Emerging Economies: Adoption Drivers and Challenges," aims to provide a comprehensive exploration of this dynamic evolution. The journey of digital payment adoption in emerging markets is driven by a myriad of factors including economic and social dynamics, technological advancements, individual motivations, and proactive government initiatives. This book delves into these diverse influences, offering a detailed analysis of how each element contributes to the growing preference for digital transactions. From the rise of e-commerce and the need for secure transactions to the impact of financial inclusion programs and the role of social media, we examine the multifaceted nature of this transformation. Case studies from various regions highlight the real-world implications and successes of digital payment systems, providing practical insights into the challenges and opportunities faced by different markets. These stories illustrate how innovative solutions and strategic investments can drive financial inclusion, enhance economic participation, and foster sustainable development. We also explore the future potential of digital payments, considering disruptive technologies like blockchain and Central Bank Digital Currencies (CBDCs), which promise to further revolutionize the financial ecosystem. Our discussion includes policy recommendations to ensure that the growth of digital payments is inclusive, secure, and beneficial for all stakeholders. We embarked on this journey to explore and elucidate the dynamic landscape of digital payment adoption in emerging economies. As educators and researchers at Daly College of Business Management (DCBM), Indore, we have witnessed firsthand transformative impact of digital technologies on financial systems and societal behaviors. Our collective experience and passion for understanding consumer behavior, iv technological advancements, and policy frameworks inspired us to delve deeper into this pivotal topic. This monograph is the result of collaborative efforts from experts in financial technology, economics, and policy analysis. We hope this book will contribute to a deeper understanding of the digital payment landscape in emerging economies and inspire further research and innovation in this field. By shedding light on the drivers, challenges, and future prospects of digital payments, we aim to provide a valuable resource for academics, practitioners, policymakers, and anyone interested in understanding the intricate dynamics of digital payments in emerging economies. Ultimately, we aspire for this work to be a catalyst for positive change, driving economic growth and financial inclusion across emerging markets.
Chapter 1 Introduction
1.1 Digital Payment1.2 Historical Background 1.3 Digital Payment Landscape 1.4 Digital Payment Framework 1.5 Digital Payment in Emerging Economies1.6 Market Highlights – Payment 1.7 Discussion
Chapter 2 Theoretical Framework & Previous Studies
2.1 Comprehensive Overview of Existing Research 2.2 Gaps in Existing Knowledge Regional ContextualizationUser Experience and AccessibilityPolicy ImplicationsIntegration with Financial Inclusion
Chapter 3 Learning Objectives and Digital Payment Dynamics
3.1 Objective 1: Drivers of Digital Payment Adoption3.2 Objective 2: Challenges and Risks in Digital Payment Adoption3.3 Objective 3: Policy Recommendations and Future Outlook3.4 Different Types of Digital Payments
Mobile WalletsMobile MoneyOnline Payment PlatformsInstant Bank TransfersDigital Currencies3.5 Role of Key Players in the Digital Payment EcosystemFinTech CompaniesTraditional Financial InstitutionsTelecommunication CompaniesGovernments3.6 Discussion
Chapter 4 Factors Driving Digital Payment Adoption in Emerging Economies
4.1 Economic and Social Factors Rise of E-commerce & Need for Secure TransactionsFinancial InclusionIncreasing Urbanization & Smartphone PenetrationEffect of Age Cohorts
4.2 Social Influence Positive Word-of-Mouth & Trusted RecommendationsImportance of Community & Peer PressureSocial Media & Influencer Marketing
4.3 Technological Advancements Smartphone PenetrationImproved Internet ConnectivityFinTech InnovationAffordable Technology and Infrastructure
4.4 Customer Influence Convenience, Speed and Security ConcernsValue-Conscious Consumers andFinancial InclusionDriving Innovation and Demand for Secure Features
4.5 Individual Factors Self-EfficacyMotivation to Embrace Technology
4.6 User Adoption Factors (TAM) Perceived UsefulnessPerceived TrustPerceived Personal InnovativenessPerceived Ease of UsePerceived Actual e Payment Use
4.7 Government Initiatives and Support Financial Inclusion ProgrammesDigital Infrastructure DevelopmentRegulatory Frameworks
4.8 Merchant Incentives and Ecosystem BuildingReduced Transaction FeesMarketing and Awareness CampaignsIntegration with Existing Systems
4.9 Innovation and Expanding Use CasesOffline Payment SolutionsBill Payments and BeyondFinancial Literacy Programs
Chapter 5 Challenges in the Adoption of Digital Payments in Emerging Economies
5.1 Infrastructure and Affordability
Limited Internet ConnectivityThe High Cost of SmartphonesLimited Electricity Access
5.2 Digital Literacy and User Experience Limited Technical KnowledgeLanguage BarriersComplex User Interfaces
5.3 Security Concerns and Trust Issues Fear of Fraud and Data BreachesLimited AwarenessLack of Trust in Financial Institutions
5.4 Social and Cultural FactorsCash Preference Informal Economies
5.5 Regulatory EnvironmentUnclear RegulationsLimited Interoperability
5.6 Merchant Adoption Limited Exposure to technologyTransaction Fee DilemmaLimited Technological Infrastructure
5.7 Regulatory Burden and Compliance Limited DocumentationDigital DivideTime-Consuming Process
5.8 Fraud and Security Threats in Digital PaymentsDigital Skimming Social Engineering AttacksAccount Takeover (ATO)5.9 Cash-in/Cash-out Infrastructure Financial Inclusion GapHidden Costs and Inconvenience
Chapter 6 Policy Recommendations & Future Outlook
6.1Recommendations for Accelerating Digital Payment Adoption in Emerging EconomiesEnhance Technological InfrastructureImprove Digital Literacy and Financial EducationStrengthen Regulatory Frameworks and Security MeasuresPromote Inclusive Financial ServicesFoster Innovation and CompetitionRaise Public Awareness and Build Trust
6.2 Future Potential and Trends in the Digital Payment Landscape Expansion of Mobile PaymentsRise of Fintech InnovationsEmergence of Central Bank Digital Currencies (CBDCs)Government Initiatives and Policy SupportEnhanced Security and Consumer ProtectionIntegration of IoT and AI TechnologiesCross-Border Payments and Financial Inclusion
Chapter 7 Impact Cases
7.1 India - The Rise of Digital Payments through Government Initiatives
7.2 Kenya - M-Pesa and the Mobile Money Revolution
7.3 China - The Alipay and WeChat Pay Phenomenon
7.4 Nigeria - The Evolution of Digital Payments through Mobile Money
7.5 Brazil - The PIX System and Digital Payment Innovation
7.6 Mexico - Expanding Financial Inclusion through Digital Payments
7.7 South Africa - Enhancing Digital Payments through Diverse Solutions
7.8 Discussion
Chapter 8 Conclusion
8.1 Summary of Key Findings
8.2 Final Thought on the Future of Digital Payments in Emerging Economies
Authors :
Dr. Sonal Sisodia,Principal, Daly College of BusinessManagement (DCBM), Indore.
Dr. Kush Singodiya, Assistant Professor, Daly College of Business Mangement (DCBM), Indore.
Prof. Neha Bhatia,Assistant Professor, Daly College of Business Mangement (DCBM), Indore.