Electronic payment systems provide access to international financial markets, allow persons from different countries to pay for goods and services free of territorial limitation. Features of electronic payment systems function are helping carry out the transfer of finance funds such as money, conditional payment units, securities, certificates in electronic execution. The growing popularity of e-commerce and the possibility of convenient payment for goods (services) directly from home increases the number of users of various international payment systems exponentially. This method of calculation is convenient and reliable. Its reputation is getting higher every day.
The international payment system is a global payment system that provides plastic card holders, trade and service enterprises, financial and government institutions in different countries with access to a fast, secure, and reliable electronic payment network. International payment associations develop general rules for conducting calculations, analyze and adjust the system's activities. Ensure according to the rules calculation methods, a specific sequence of technical procedures, the safe conduct of financial transactions, and mutual settlements between the subjects of economic transactions, association participants, and partners. The parent companies of payment systems accumulate resources for the implementation of new technologies, information communications creation, and development. Such systems form the basis of modern calculations and accelerate financial processes in the economy.
The expenses of international payment systems are covered by the contributions of the banks participating in the payment system in proportion to the volume of their card transactions.
In general, international payment associations perform the following functions:
Among the external operational functions performed by international payment systems for their members is authorization, that is, obtaining a transaction permit from the issuing bank if the purchase amount exceeds the one-time limit or if the merchant has doubts about the identity of the client and the legality of his card use. Another weighty function of payment associations is the organization of final settlement and repayment of debts on card transactions.
The status of an international association of participants is obtained if this association provides an opportunity for residents and organizations to make payments on the territories of most countries of the world. To do this, the international payment system must include operators from different countries. Their role is usually performed by the heading government banks. The most famous international Payment System are Visa, Mastercard, American Express, UnionPay International, JCB.
The main task of bank card payment systems is to ensure settlement operations between merchants and buyers who pay with bank cards. At the same time, international payment systems based on bank cards take and fulfill obligations to issue cash to holders in traditional forms at bank cash desks or ATMs.
In the category of large international payment associations of bank cards, three leading giants of the payment industry are noted: VISA, Mastercard and UnionPay International. The first two are American multinational corporations, the third is the Chinese global system. It accounts for 30% of all issued cards in the world. According to this indicator, Visa is in second place – 28.6%, Mastercard is in third with 20 percent.
Visa is one of the global multinational companies and is at the top rating of the global payment industry market in terms of annual turnover. The total financial turnover on the cards is $ 8.3 trillion. Today Visa is one of the leading developers of cashless payment technologies. It is used by more than 16 thousand enterprises. The system's partners provide fast and secure payments in 200 countries around the world. All of them are carried out using the innovative Visa Net network. It performs authorization and is capable of conducting tens of thousands of transactions per second. The main currency of operations is the US dollar. VISA Corporation together with Mastercard and European partners is the author of the international standard EMV, which defined the current procedure for conducting card transactions.
Visa offers its users a huge selection of payment means, including all traditional types of card products, a convenient and simple money transfer service. To transfer money on the Visa card, it is enough to enter the number of payment plastic card in the account and confirm consent to the operation. The Visa B2B Connect multi-party network allows direct one-to-many transactions between participating banks, optimizing payments and providing greater transparency and predictability.
An international corporation with its head office in the USA. Under her leadership, 22 thousand financial structures and technology companies work in 210 states. Every fifth payment card in the world is issued with the MasterCard logo. Since 1968, it has been closely cooperating with the Eurocard group of European banks. That explains the choice of the European currency as the main one in the company's strategy. The corporation offers its customers a huge selection of cards, both debit and credit, and prepaid. One of the first to introduce a method of contactless payment by mobile phone in trading terminals. It is most profitable to use cards in Europe and Africa.
An American company founded in 1850 in New York. Provides services in the field of tourism business, issues plastic cards, and traveler's checks. Based on her work, one of the first payment systems was launched, which is considered the third-largest in the world after Visa and Mastercard. Currently, the American Express payment system offers customers a wide range of settlement, credit, and prepaid products, including microprocessor cards. It is most in-demand in America and Canada. It is aimed at wealthy people who are fond of traveling. The cards are classified into several categories, among which Centurion is the most elite due to the list of unique services. Plastic cards of this system are accepted in more than 100 countries of the world.
UnionPay International (UPI)
In partnership with more than 2400 financial institutions around the world, the UPI provides the ability to use cards to pay for goods, services and withdraw cash in 180 countries around the world. UPI cards are issued in more than 70 countries. UPI ranks first in the international settlement market in terms up the number issued cards (over 4 billion units). Chinese payment instruments of this system are accepted in 150 national territories of the world. Internal payments with processing operators are made mainly in dollars.
The Japanese payment system, founded in 1961, offers debit, credit, and prepaid cards available in 23 countries. The total number of contracts concluded with retail outlets exceeds 30 million. Cardholders can enjoy various privileges such as discounts in online stores and cafes, bonuses for traveling to Europe, Japan, and other Asian regions. The JCB Contactless function pays for services without using a pin code. It is enough to attach a card or a mobile device to the reader.
The largest payment systems that control 80% of the international market are Visa and Mastercard. Their main advantages are a huge reception infrastructure, the ability to make cross-border payments, the image of solvency associated with the card.
Aspects of the payment systems activity are very similar: the organizational principles of hierarchical membership, on which the architecture of one and another system is based, data exchange, clearing, operational procedures, risk management, cryptographic procedures, and standards, etc.
The choice between the systems is far from unambiguous and is made by consumers based on their preferences. And by the bank accordance its corporate lifestyle, that is, in general, based on subjective approaches.