DIGITAL MONEY AS A TOOL FOR STIMULATING THE DEVELOPMENT OF PAYMENT SYSTEMS

Abstract

The article is devoted to a comprehensive study of the role of digital money as a strategic instrument that stimulates the modernization of contemporary payment systems under conditions of global digitalization of the economy. The paper substantiates that digital forms of value generate a fundamentally new level of financial interaction, transforming the logic of capital circulation and the principles governing the operation of settlement infrastructure. The authors analyze the essential characteristics of digital money as a catalyst for innovation that ensures higher transaction speed, transparency of financial flows, and broader accessibility of services for large segments of the population. Special attention is given to the analysis of the dynamics of the cashless segment in Ukraine over the period 2020–2025. The study demonstrates a stable upward trend: the volume of electronic transactions increased from UAH 1.8 trillion in 2020 to a projected UAH 4.5 trillion in 2024, accompanied by growth in the number of active digital wallets from 55 to 85 million. These indicators confirm a large-scale expansion of the digital economic space, where cashless payments become the basic channel of interaction among the state, business entities, and households. The article examines in detail the structure of the payment market, where, based on the results of 2024, the share of cashless transactions by number exceeded 95%, while by value it reached more than 65%. Using data from the first quarter of 2025, a shift in consumer priorities is identified: commercial transactions occupy a dominant position, whereas the share of P2P transfers and online payments demonstrates a different pattern in terms of financial weight. This confirms the deep integration of digital instruments into everyday user behavior and retail trade turnover. The authors systematize the types of payment systems operating in Ukraine, including international networks such as Visa and MasterCard, national services, and advanced fintech platforms. Strategic prospects for industry transformation are identified, associated with the elimination of intermediaries, process automation, and the development of high-performance infrastructural solutions for instant settlements. It is substantiated that digital money contributes to financial inclusion and strengthens trust in the national system through enhanced real-time control over fund movements. The study concludes that a comprehensive digital ecosystem is taking shape in Ukraine, serving as a foundation for the further modernization of the financial sector.