Directions in the development of the payment service market

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.