Executive Summary No Cash?

A central role in our economic activity plays the payment transactions (payments as the transfer of money from the power of one economic subject to another). He enjoys the highest dominance for all business models of the providers as well as for most citizens in the daily life. Payments are, so to speak, the backbone of our networked, work-sharing and cross-border economy and society. It is therefore not
surprising that in the course of the discussion under the label “Digital World & Finance” the development of digital payments is being discussed more frequently, more intensively and more controversially, even though the digitization in this area of the financial sector is clearly reflected in the many western industrial nations Goes back to the 1980s.

Cash and cash equivalents are technically guaranteed, except through cash handling, only through exchanges of book money in existing and / or emerging or growing liquidity networks offered by the respective companies as part of their commercial business model. Such business models or providers thus provide a kind of intermediary service because their respective platform links individual existing or
intended liquidity equalisations (“network”) .

This is typical of the payment account or current account networks of traditional banks and savings banks or direct banks The resulting network assets can basically be characterized by positive externalities, as they are well-known from other areas of economics and technology, in particular telecommunications or electromobility, the connection to a network (for example in mobile communications) or the acquisition and use of access devices (For example, computer or smartphone) or the participation in a social network is the more attractive the more involved, so the larger and denser a network is / is.

Three basic types of payment systems can be identified (B2C): fixed payment systems, Internet payment systems and mobile payment systems. The former type of payment systems is only at first glance for the analogue world of payment services, because here the digital processing of non-cash payments (bank transfer, direct debit, card payment) and the various forms of self-service are often no longer perceived as a form of digitization. The two other types (Internet, mobile payment systems), on the other hand, are often regarded as prototypical for manifestations of the digitization of payments.

• Stationary payment systems as direct debit / credit systems (bank transfer, standing order, direct debit, also via ATM) or – especially in commerce – as card payment systems (credit cards, debit cards, payment cards); Cash payment is also possible here.

• Internet payment systems as direct debit / credit systems (bank transfer, standing order, direct debit) or as card payment systems (credit cards, debit cards, payment cards); known as online banking, also via e-commerce. This also includes the use of mobile devices such as smartphones to initiate or authorize the transfer (credit transfer) or debit (direct debit). A special focus here is in the ecommerce-typical
distance business, ie the basic credit-driven problem of the exchange of money and money and the goods or services on the other hand.

Mobile payment systems: A mobile access channel that is usually accessible via smartphones or tablets, and then mobile payments made in this way only include those initiated by people using a mobile device and those using a mobile device This does not include payments such as bank transfers or direct debits that take place on the internet and that are only initiated or authorized by a smartphone (for example, banking app, TAN), these are internet payments Payments at the POS using a chip in a smartphone or a NFC sticker (NFC: “near field communication”) on the smartphone, but based on a card application in the smartphone (fixed payments).

The progressive digitization and its entanglement with analogue processes now also allows non-banks to combine their core business fields (trade, information, communication) with the traditional business field of (banking) payment transactions. If non-banks offer such payment services, they are now often referred to as FinTechs (Financial Services & Technology). These are not just start-ups, but also internationally active information and trade and telecom companies such as Amazon or Google, as well as Apple or Samsung, which are new to their core business of information, communications or commerce complement (want to) strategic business field.

There are a number of reasons for using the field of payment transactions, possibly free of charge as well. These include in particular the forced customer loyalty and the acquisition of additional data, which can be merged with the already available data and analyzed in more detail and then used for further advanced acquisition or sale to third parties (profiling, e-targeting, big data).
In order for the opportunities of the innovative concepts to be recognized and used, this requires full transparency as a necessary condition. But even more important is the sufficient condition that the
information has a high quality and is not made anywhere and somehow transparent. Consumers may voluntarily or unintentionally, and often unconsciously, create personal information that third parties, such as the owners of the business models of the supplying industries or decision-makers of state institutions, can and want to exploit.

These personal data often have an institutional, social, and / or economic value that all actors, in principle also consumers, should be able to use individually or collectively as a subject of negotiation. It seems to be decisive from the perspective of the citizens, how simple, understandable and clearly recognizable, that the used offers are paid from the personal data (also by passing on to third parties) and whether in the case of refusal except the non-use the service gives ways of avoidance as well as alternative solutions. This includes the simple, clear and comprehensible identification of the extent to which personal data for direct or indirect personal, geographic and technology-dependent (for example, depending on the access / device used) price differentiation (should) be used. Likewise, this concerns labeling in terms of (IT) security, including the declaration of the expected and obligatory contribution of the payer.