Analog and digital forms of payments: considerations of systematics

There are also and especially for payments serious differences between the digital world on the one hand and the traditional or analog world on the other hand in terms of time / speed, range / quantity, irreversibility / storage and the associated transaction costs and a change in the risk-return distribution (for example, self-responsibility for access codes, passwords etc. or software maintenance including protection software).

The advantage of very cheap digital production and communication is the need for technical equipment. Finally, the “data traces” left behind in the use and processing of the information also play an important role (also: data fusion in the sense of merging data from the purchase / sale, the payment, the credit rating, the lifestyle, etc.). Here, privacy, including the protection of personal data, is directly affected, especially when data is being read out and / or further processed unnoticed (e- targeting and e-profiling, technical, personal or geographic price differentiation). Last but not least, the chances of using the digital data (tracks) are unevenly distributed. Although the transaction costs for both sides of the market are falling, the supply side gains a considerable information advantage through data mining and data tracking (big data), which can be attributed to pecuniary gains as well as an
increase in information and communication power.

Beyond the already well-advanced digitization processes in banking and savings banks, for example in the settlement of non-cash payments with transfers, standing orders, direct debits, self-service in retail banking with cash dispensers or multifunction terminals and at the point of sale (for example, giro card) and in Account management and investment as well as financing via the Internet (online banking) or based on mobile devices such as smartphones (mobile banking) has become increasingly popular in recent years due to the increasing popularity of e-commerce and the increasing availability of mobile devices such as tablets or smartphones Finally, new technological developments such as NFC (Near Field Communication), QR codes (Quick Response Codes) or BLE (Bluetooth Low Energy) have brought the use of new, faster and possibly more convenient payment methods into focus. The progressive digitization and its entanglement with analogue processes now also allows non-banks to combine their core business fields (trade, information) with the traditional business field of (banking) payment transactions.

Payment events for individuals can be divided essentially into four categories:

• P2P: “person-to-person” or “peer-to-peer”, which describes the cash or non-cash transfer of funds between individuals, such as maintenance, allowance, gifts or donations, typically as face-to-face payments; but also as a distance payment.

• LVR: “Current Contracts / Invoices”, which include well-known, often recurring payments, for example for investment, property or life insurance, energy and utilities (electricity, gas, water), telecoms, rent, loans (interest and credit) Repayment) or to the state (taxes, fees), typically as a distance payment.

• NEVR: “New / One-Time Contracts / Invoices”, which include, for example, payments from new / spontaneous purchases online, to the state (fees), craftsmen, public transport (including taxi), for travel (flights etc.), typically as a down payment and also as a distance payment (also distance payment as remote payment: outside the shop, payer and payee are spatially separated, paying self-sufficient andindependent of the dealer, the goods or the service, for example Mobile Parking (M (obile) -Commerce
as part of e-commerce)).

• POS: Point of Sale, which includes payments for on-site purchases of tangible goods and services in brick-and-mortar retail or trade, close or even proximity payment.

The following media and devices are basically available as payment instruments (the payment instrument serves the connection to the access channel according to criteria such as, for example, scope of functions, transportability, connection to communication networks, see below):

• PC: computer (stationary or notebook).

• PA: Paper-based forms such as forms for bank transfer, standing order, direct debit (especially direct debit authorization).

• TE: telephone / fax stationary or non-internet-capable mobile (“mobile phone”, including telephone banking).

• MO: Mobile, in particular smartphone, tablet, possibly sub-notebooks with comparable functions to the tablet.

• KA: credit cards, debit cards (also payment cards, eg giro card), possibly also with a chip and / or NFC (near field communication) and a card application in a smartphone / tablet.

BG: cash (coins, notes). Depending on the respective payment instrument, the following five variants can be selected as the access channel (the access channel connects the payer or the payee and the respective payment service provider so that a payment can be initiated or received):

• WEB: Internet, especially online banking, e-commerce; optionally using mobile terminals such as a smartphone to initiate and / or authorize the transfer (credit transfer) or debit (direct debit).

• FIL: branch, ie stationary, basically personnel-based offer on site; also accessible via mail or telephone / fax.

• ATM: “Automated Teller Machine”, not just cash dispensers, but also MFT / multifunction terminals for transfers, standing orders, direct debits and deposits.

• POST: POS terminal, typically in stores, but also in petrol stations, restaurants, hotels, supermarkets, etc.

• MOAC: “Mobile Access Channel”, non-stationary channel, which can only be reached with MO and possibly also with non-internet-capable mobile (“mobile phone”) via SMS.

The then executed in this way mobile payments (mobile payments) include only those initiated by people using a mobile device (MO) and which are connected by means of a mobile communication network with speech recognition, text messages or NFC, etc. to the payment service provider. As a payment service provider, the following five types can essentially be recognized:

• TBS: Traditional bank / savings bank with stationary branches.

• IB: Internet bank, online banking and mobile banking, for example Fidor, DKB; also online banking from TBS.

• EKT: E-money account provider, transfer of prepaid deposits, including prior credit balancing via direct debit or credit card payment (eg PayPal).

• KAU: card issuing company (eg credit card company).

Z / T: Z / transfer; Third parties (payment initiation service) accesses the payment account of the customer’s account-holding institute after initiation of a transaction on the Internet, after initiation of payment and verification of the payment transaction (or payment initiation service, ZAD) Account
information, the third party sends a message to the online merchant (eg Sofortüberweisung)) or the pure financial transfer (for example, online trading platforms) as well as the digital payment transaction (operator of the telecommunication or IT system or IT network exclusively as intermediary between payer and suppliers).