FINTECH SOLUTIONS AND DIGITAL PAYMENT SYSTEMS: TRENDS, CHALLENGES AND OPPORTUNITIES FOR EASY PAYMENTS IN CASHLESS ECONOMY WITH REFERENCE TO INDIA AND KUWAIT

Abstract

Digital methods of payment emerged as a result of the interaction involving technology and finance through the Internet. A wide array of Financial Technology (FinTech) solutions has emerged, allowing users to go beyond traditional cash-based payment methods (Khando Islam and Gao, 2022). This has led to the emergence of a cashless economy. The advancements in the digital world have brought about a transformation in many aspects of human activity. As a result of the modification to the policy, cash is no longer the only mode of payment. The world is switching from a cash-based payment system to a cashless (digital) one. Numerous benefits result from this, including lower currency management costs, transaction tracking, and the ability to detect fraud or tax evasion (Sumathy and Vipin, 2017). FinTech, a relatively recent word in the financial sector, is now widely used to refer to cutting-edge technology that financial service firms have implemented. This phrase encompasses a wide range of methods, including financial service delivery and data security (Gai et al., 2018). Fintech has a notable impact on online payments since increasingly sophisticated digital payment systems are replacing conventional banking techniques in this domain. Fintech has surfaced as a potentially viable resolution to the problem of easy, safe, and quick payments for products and services (Liang, 2023). The cashless economy is growing quickly, particularly in developing countries. A large number of consumers and businesses have switched from traditional transactions to cashless payment methods. Specifically, micro merchants receive low-value payments from mobile payment customers, making them players in the mobile payment ecosystem (Priananda et al., 2020). Despite the advantages of digital payments and a cashless economy, there are challenges associated with data privacy and security. Still, the possibilities for digital payment systems and a cashless economy are endless and fintech solutions are at the forefront of it. In conclusion, there are a lot of possibilities and problems along the way as we move toward a cashless economy driven by digital payment systems and FinTech solutions. For this reason, the current study will investigate the reviews on patterns, problems and opportunities related to these revolutionary technologies in order to enable smooth transactions in a cashless economy.