PAYMENT INNOVATIONS IN POLAND: THE ROLE OF PAYMENT SERVICES IN THE STRATEGIES OF COMMERCIAL BANKS

This paper examines the significance of innovations in the area of payment services for strategies implemented by commercial banks in Poland. We propose a definition of payment innovations and present the evolution of their introduction in the Polish market, indicating the impact of legal regulations and the critical character of the new FinTech phenomenon. The analysis that we conducted was based on the results of a survey which obtained responses from 24 commercial banks representing almost the entire Polish retail banking sector based on the number of personal accounts maintained. The study helped to determine the main elements of the strategies implemented by banks in Poland. It also revealed the methods for competing in the area of payment services utilized by the banks, with innovative services as one of the leading elements. The results of the study indicated that there was a significant differentiation of applied strategies depending on a bank’s size. In the case of larger banks, the main motivation for introducing payment innovations was characteristic of an offensive strategy, and for smaller banks — more often a defensive one. We also proposed a theoretical model for using the specific nature of payment innovations to build customer relationships and to apply cross-selling

PAYMENT INNOVATIONS IN POLAND: THE ROLE OF PAYMENT SERVICES IN THE STRATEGIES OF COMMERCIAL BANKS

This paper examines the significance of innovations in the area of payment services for strategies implemented by commercial banks in Poland. We propose a definition of payment innovations and present the evolution of their introduction in the Polish market, indicating the impact of legal regulations and the critical character of the new FinTech phenomenon. The analysis that we conducted was based on the results of a survey which obtained responses from 24 commercial banks representing almost the entire Polish retail banking sector based on the number of personal accounts maintained. The study helped to determine the main elements of the strategies implemented by banks in Poland. It also revealed the methods for competing in the area of payment services utilized by the banks, with innovative services as one of the leading elements. The results of the study indicated that there was a significant differentiation of applied strategies depending on a bank’s size. In the case of larger banks, the main motivation for introducing payment innovations was characteristic of an offensive strategy, and for smaller banks — more often a defensive one. We also proposed a theoretical model for using the specific nature of payment innovations to build customer relationships and to apply cross-selling

One-Time Code Cardholder Verification Method in Electronic Funds Transfer Transactions

Card payments are getting more and more popular across the world. The dominantstandard used for Electronic Funds Transfer transaction is EMV. It is widely used across Europeand Canada, and currently it is being introduced in the USA. The most frequently used CardholderVerification Method in EMV transaction is PIN, which requires from the payment terminal to beequipped with pinpad - which increases the cost of the whole payment device. In this article I presentan alternative Cardholder Verification Method (CVM) that can be used instead of traditional PIN.The key advantage of the presented mechanism is that it can be easily implemented in currentlyutilized authorization protocols, it does not affect rules of EMV specification and may decrease timeof transaction processing

Can smart cards reduce payments fraud and identity theft?

In the United States, when a consumer presents a payment to a merchant, the merchant typically makes a request for authorization before accepting the payment. Personal information, such as an account number, address, or telephone number, are often enough to initiate a payment. A serious weakness of this system is that criminals who obtain the correct personal information can impersonate an honest consumer and commit payments fraud. ; A key to improving security-and reducing payments fraud-might be payment smart cards. Payment smart cards have an embedded computer chip that encrypts messages to aid authorization. If properly configured, payment smart cards could provide direct benefits to consumers, merchants, banks, and others. These groups would be less vulnerable to the effects of fraud and the cost of fraud prevention would fall. Smart cards could also provide indirect benefits to society by allowing a more efficient payment system. Smart cards have already been adopted in other countries, allowing a more secure payments process and a more efficient payments system. ; Sullivan explores why smart cards have the potential to provide strong payment authorization and thus put a substantial dent into the problems of payments fraud and identity theft. But adopting smart cards in the United States faces some significant challenges. First, the industry must adopt payment smart cards and their new security standards. Second, card issuers and others in the payments industry must agree on the specific forms of security protocols used in smart cards. In both steps the industry must overcome market incentives that can impede the adoption of payment smart cards or limit the strength of their security.

A mixed methods empirical exploration of UK consumer perceptions of trust, risk and usefulness of mobile payments

Exploring UK consumer perceptions of trust, risk and perceived usefulness of mobile payments through the use of sequential mixed methods

Modelling customers' intentions to use contactless cards

Since their introduction in the USA in 2002, contactless card payment systems have been widely regarded as the pinnacle of current retail banking technology. However, the potential demand and usage of this innovation has hitherto received little attention from the academic community. Ours is one of the first papers that explore the factors that are likely to govern acceptance and intentions to take-up the technology. The analysis utilises the methodological framework of the technology acceptance model (Davis, 1989; Davis et al., 1989) and develops a range of empirical representations. Our results lend support to the TAM conceptualisation and also indicate that some demographic characteristics imprint upon the intentions of potential users