Digital Payments Transformation 4.0 – A Review and Research Agenda


  • Neha Vivek Dharurkar, Ramakrishnan Raman


Purpose: To study the evolution in payment and settlement systems in India and the current trends that are driving the digital transformation 4.0.
Methodology: Review of literature was done of payment systems, trends in banking, payment regulations and payment products. The study of technological advancements in banking and more specifically the payment domain was conducted through study of relevant articles, fintech products and websites of regulatory bodies. The conclusions of the study were drawn by studying advances in banking sector and analyzing the digital transformations in payments on Industry 4.0.
Findings: The study identifies multiple technologies using which end-to-end straight through processing (STP) can be achieved in payment industry. The study also suggests that,like industrial transformation, there has been a significant digital transformation in payments domain.
Research Implications: The Industry 4.0 works on the principle of adopt or perish. If banks or organizations do not adopt to new technologies, they may face possibility of being abandoned.
Originality / Value: Although various studies exist with respect to Industry 4.0, the study of the same from payments industry perspective has not been conducted. This study can help the organizations (businesses as well as financial institutions) understand the areas in which straight through processing can be achieved in payments domain. It can also be used as a strategy for digital transformation by other under-developed or developing nations.