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Directions in the development of the payment service market
Journal of Payments Strategy & Systems,
10
(2),
181-193
(2016)
Abstract
Expansion of the activity of non-bank payment service providers (NBPSPs) and the application of innovative payment technologies, as well as increasing the usage of new effective payments methods, are the main targets in the future development of cashless settlements in a modern globalised economy. The modern economy needs a wide network of payment service providers to make electronic payment services available to everyone. To increase the financial resources in the banking system it is crucial to attract the population and economic subjects to the cashless settlement environment. Current trends across the world show that modern participants in payment service markets, such as payment institutions and electronic money institutions, are formulating the new view of this market. Mobile payment operators, organisations that establish payment gateways, local authorities as payment institutions or electronic money institutions are defining a new development strategy for cashless settlements. This trend has been extended in some European countries (eg, Germany, Luxembourg), in East Asia (eg, Sri-Lanka, Malaysia) and in CIS countries (eg, Georgia, Ukraine). This paper explains how to formulate an appropriate legal base, a regulation environment, as well as define requirements for the participation of NBPSPs in a payment circle, as well as how to expand their activities and push the application of innovative payments technologies.
Keywords: non-bank payment service providers; payment institutions; electronic money
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Author's Biography
Tamerlan H. Rustamov is a senior specialist at the Payment Systems and Settlements Department of the Central Bank of the Republic of Azerbaijan (CBAR). He is currently responsible for preparing the Law on Payment Services, as well as the development of a normative legal base for payment systems, an assessment of how efficiently various forms of cashless payments in the country are used. He participates in education programmes implemented to raise the financial literacy of the population. Before working for CBAR he worked at a commercial bank for about half a year as an economist and dealt with remittances, currency, deposits and bank accounts operations. The projects in which he has been involved relate to (1) the development of payment systems and the popularisation of cashless payments; (2) the development and improvement of the normative legal base for payment service providers, payment services and the preparation of different legal acts on payments cards, money remittances and interbank settlements; (3) raising the financial literacy of the population; (4) overseeing the activity of processing organisations. He has received a Bachelor’s degree in International Trade and a Master’s degree in finance and credit from the Azerbaijan State Economic University.
