THE ROLE OF PAYMENT SYSTEMS UNDER MARTIAL LAW

Abstract

The article substantiates the relevance of studying the role of payment systems during martial law as a key infrastructure and an essential condition for maintaining financial stability and ensuring economic functioning under crisis threats in the country. The purpose of the article is to identify the main functions of payment systems in supporting uninterrupted monetary circulation and providing public access to financial services under the extraordinary conditions of martial law. To achieve this aim, methods of analysis and synthesis, a systemic approach to studying payment system infrastructure, as well as comparative analysis to identify key problems and development prospects, are applied. The current state of card payment systems and money transfer systems in 2024 is analyzed, including their share in domestic and cross-border transactions. The article outlines the strategic importance of the national payment system «Prostir» as an alternative to international solutions in the context of potential sanctions or technical restrictions. The reasons for its limited popularity among the population are examined, such as the dominance of international brands, network dependency effects, banks’ commercial priorities, lagging mobile service support, and entrenched consumer preferences. As a result, the study defines the main tasks of payment systems in crisis periods, particularly ensuring security, accessibility, and reliability of payments even in the face of communication disruptions, power outages, or mass population displacement. It identifies the need to develop digital tools, implement backup payment processing mechanisms, and improve regulatory frameworks. Proposals are formulated to improve the operation of the national payment system, increase its adoption by the population through infrastructure development, user-friendly services, and informational support. The practical value of the article lies in identifying priority directions for strengthening the country’s payment infrastructure under martial law, contributing to enhanced financial security, social stability, and economic resilience in the face of extraordinary challenges.