THE ROLE OF DIGITAL PAYMENT SYSTEMS IN TRANSFORMING RETAIL COMMERCE

Abstract

Digital payment systems have emerged as a critical driver in reshaping the landscape of retail commerce. By enabling fast, secure, and convenient transactions, these systems have significantly improved the customer experience while enhancing operational efficiency for retailers. The integration of technologies such as mobile wallets, QR code payments, near-field communication (NFC), and blockchain has led to the evolution of seamless, cashless environments. Additionally, digital payments contribute to data-driven decision-making by providing insights into consumer behavior and preferences. This transformation is particularly evident in the rise of e-commerce and the shift toward omnichannel retail strategies. However, challenges such as cybersecurity risks, digital literacy, and infrastructure gaps remain key concerns. This paper explores the multifaceted impact of digital payment systems on retail commerce, highlighting both opportunities and barriers to widespread adoption.