DEVELOPMENT OF ELECRTONIC PAYMENT SYSTEMS IN COUNTRIES IN TRANSITION

Abstract

Contemporary payment transactions are intricately linked to the integration of information and communication technologies, facilitating exchanges through electronic messages within the information systems of participants. The completion of electronic payment transactions occurs upon the receipt of an electronic message by the recipient or confirmation from the sender about the message's reception, and its validity depends on adherence to prescribed formats, authentication through electronic signatures, and compliance with established rules. Developed market economies exhibit various models for payment settlement systems, especially in transactions involving significant values. Countries in Central and Eastern Europe undergoing the transition process faced two fundamental challenges: inadequate telecommunication networks and an underdeveloped banking system. Inefficiencies in bank management structures, coupled with a population inclined towards cash payments due to manual transaction processing, primitive telecommunications, and a general lack of trust in the banking system, prompted these countries to initiate comprehensive reforms of their payment systems. Addressing these challenges became crucial as these nations sought to establish the foundations for the development of a market economy.