Valley International Journal Digital Library

VIJ Digital library
Articles

The Rise of Mobile Payment Systems: How Information Technology Shapes the Fintech Ecosystem

PDF
  • Pushpalika Chatterjee
Pushpalika Chatterjee
Software Engineering Manager in Payments
Published in : International Journal Of Engineering And Computer Science (IJECS) , Vol. 12 No. 08 (2023)

Submission to VIJ 2023-08-22

Abstract

The rapid proliferation of mobile payment systems has fundamentally transformed the financial landscape, catalyzed by advancements in information technology (IT) and the broader evolution of the fintech ecosystem. This paper explores the rise of mobile payment platforms as a pivotal component of fintech, emphasizing their impact on financial services, consumer behavior, and global economic systems. Mobile payment systems leverage key IT innovations such as blockchain, artificial intelligence, and application programming interfaces (APIs) to deliver secure, seamless, and scalable financial solutions, driving their widespread adoption across both developed and emerging markets.

The paper investigates the historical evolution of mobile payments, analyzing the milestones that have shaped this transformative technology. Through case studies of global leaders such as Alipay, PayPal, Google Pay, Unified Payments Interface (UPI - India), and Zelle. It highlights how IT infrastructure and mobile-first ecosystems are redefining convenience and accessibility in financial transactions. Additionally, it examines the implications of these systems on traditional banking, small businesses, and consumer experiences.

However, the growth of mobile payment systems is not without challenges. Security concerns, regulatory hurdles, and disparities in digital infrastructure pose significant barriers to universal adoption. Despite these obstacles, opportunities abound in emerging markets and underbanked populations, where mobile payments have proven instrumental in fostering financial inclusion.

By presenting comparative analyses, data-driven insights, and forward-looking predictions, this paper provides a comprehensive understanding of how information technology is shaping the future of the fintech ecosystem through mobile payment systems. The findings emphasize the dual role of IT as both a disruptor and enabler in the financial sector, underscoring the transformative potential of mobile payments in driving economic innovation and inclusivity worldwide.

PDF

References

  1. Omarini, A. E. (2018). Fintech and the future of the payment landscape: The mobile wallet ecosystem. A challenge for retail banks?. International Journal of Financial Research, 9(4), 97-11
  2. Kumar, V., Lai, K. K., Chang, Y. H., Bhatt, P. C., & Su, F. P. (2021). A structural analysis approach to identify technology innovation and evolution path: a case of m-payment technology ecosystem. Journal of Knowledge Management, 25(2), 477-499.
  3. Ray, S., Korchagina, E. V., Druzhinin, A. E., Sokolovskiy, V. V., & Kornev, P. M. (2022, April). Emergence of the New Start Up Ecosystem: How Digital Transformation Is Changing Fintech and Payment System in Emerging Markets?. In International Scientific Conference “Digital Transformation on Manufacturing, Infrastructure & Service" (pp. 621-638). Cham: Springer Nature Switzerland.
  4. Senyo, P. K., Karanasios, S., Gozman, D., & Baba, M. (2022). FinTech ecosystem practices shaping financial inclusion: The case of mobile money in Ghana. European Journal of Information Systems, 31(1), 112-127.
  5. Palmié, M., Wincent, J., Parida, V., & Caglar, U. (2020). The evolution of the financial technology ecosystem: An introduction and agenda for future research on disruptive innovations in ecosystems. Technological forecasting and social change, 151, 119779.
  6. Muthukannan, P., Tan, B., Gozman, D., & Johnson, L. (2020). The emergence of a Fintech Ecosystem: A case study of the Vizag Fintech Valley in India. Information & Management, 57(8), 103385.
  7. Lagna, A., & Ravishankar, M. N. (2022). Making the world a better place with fintech research. Information Systems Journal, 32(1), 61-102.
  8. Nyagadza, B., Muzira, D. R., & Chuchu, T. (2023). Mobile Fin-Tech ecosystem shaping financial inclusion in Zimbabwean banking and financial services markets. In Financial inclusion and digital transformation regulatory practices in selected SADC countries: South Africa, Namibia, Botswana and Zimbabwe (pp. 255-274). Cham: Springer International Publishing.
  9. Moro-Visconti, R., & Cesaretti, A. (2023). FinTech and digital payment systems valuation. In Digital Token Valuation: Cryptocurrencies, NFTs, Decentralized Finance, and Blockchains (pp. 411-458). Cham: Springer Nature Switzerland.
  10. Gozman, D., Liebenau, J., & Mangan, J. (2018). The innovation mechanisms of fintech start-ups: insights from SWIFT’s innotribe competition. Journal of Management Information Systems, 35(1), 145-179.
  11. Molla, A., & Biru, A. (2023). The evolution of the Fintech entrepreneurial ecosystem in Africa: An exploratory study and model for future development. Technological Forecasting and Social Change, 186, 122123.
  12. Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. Journal of management information systems, 35(1), 220-265
  13. Dapp, T., Slomka, L., AG, D. B., & Hoffmann, R. (2015). Fintech reloaded–Traditional banks as digital ecosystems. Publication of the German original, 261-274.
  14. Joshi, D., Sayed, F., Jain, H., Beri, J., Bandi, Y., & Karamchandani, S. A Cloud Native Machine Learning based Approach for Detection and Impact of Cyclone and Hurricanes on Coastal Areas of Pacific and Atlantic Ocean.
  15. Ferrari, M. V. (2022). The platformisation of digital payments: The fabrication of consumer interest in the EU FinTech agenda. Computer Law & Security Review, 45, 105687.
  16. Migozzi, J., Urban, M., & Wójcik, D. (2024). “You should do what India does”: FinTech ecosystems in India reshaping the geography of finance. Geoforum, 151, 103720.
  17. Bhat, P., Shukla, T., Naik, N., Korir, D., Princy, R., Samrot, A. V., ... & Salmataj, S. A. (2023). Deep Neural Network as a Tool to Classify and Identify the 316L and AZ31BMg Metal Surface Morphology: An Empirical Study. Engineered Science, 26, 1064.
  18. Boniface, C. I., West-Osemwegie, L., Vivian, C. C., & Anirejuoritse, B. (2023). Predicting Foot Salvageability in Diabetic Foot Lesion: Comparison of Benin Diabetic Foot Severity Score and Wagner System. Valley International Journal Digital Library, 851-856.
  19. Chukwuka, I. B., Mohammad, N. T., Chukwuka, C. V., Uko, C. O., Babalola, D. O., & Effa, P. E. (2023). Challenges and Prospects of the National Health Insurance Scheme and Medical Service Delivery in The Nigerian Navy. Valley International Journal Digital Library, 844-850.
  20. Lakhani, R. (2023). Cybersecurity Threats in Internet of Things (IoT) Networks: Vulnerabilities and Defense Mechanisms. Valley International Journal Digital Library, 25965-25980.