DEVELOPMENT OF DIGITAL PAYMENT SYSTEMS AS A DRIVER OF E-COMMERCE GROWTH

Abstract

The article examines the development of digital payment systems as a key driver of e-commerce growth in the context of digital economic transformation and increasing global competition. The essence of digital payment instruments, their main types, and functional capabilities are revealed, including e-wallets, mobile payment applications, online banking systems, contactless technologies (NFC), QR payments, and payment gateways. Their role in ensuring the speed, convenience, accessibility, and security of financial transactions, as well as in significantly reducing transaction costs and increasing consumer trust and satisfaction, is substantiated. The influence of the fintech sector on the transformation of the payment market and the development of innovative financial services is analyzed, including “buy now – pay later” (BNPL) models, personalized financial solutions, digital credit products, and integrated financial ecosystems. The importance of the open banking concept and the use of modern technologies, such as artificial intelligence, blockchain, big data, and API solutions, in improving the efficiency, transparency, and automation of payment systems is highlighted. Special attention is paid to the regulatory framework of Ukraine’s payment market, in particular the implementation of European approaches in accordance with the Law of Ukraine “On Payment Services,” which creates institutional prerequisites for integrating the national financial system into the global economic space. The main challenges of digital payment development are analyzed, including cybersecurity risks, personal data protection, digital inequality, and regulatory constraints. The impact of wartime conditions on the functioning of e-commerce in Ukraine is examined, demonstrating that digital payment systems ensured the resilience of financial infrastructure, facilitated the rapid recovery of online trade, and supported economic activity even under crisis shocks. It is concluded that the further development of digital payment systems is an important prerequisite for economic recovery, shadow economy reduction, increased investment attractiveness, and business competitiveness.