Implementation of comprehensive digital payment ecosystem strategies in banking institutions

Posted: Jun 07, 2022

• Prof. Ethan Rossi
• Prof. Harper Schmidt
• Prof. Isaac Li

Abstract

This research presents a novel framework for implementing comprehensive digital payment ecosystems in banking institutions, integrating quantum-inspired optimization algorithms with behavioral economics principles to address the complex multi-stakeholder challenges inherent in digital payment transformation. Traditional approaches to digital payment implementation have typically focused on technical infrastructure or regulatory compliance in isolation, failing to account for the intricate interdependencies between technological systems, user behavior patterns, institutional capabilities, and market dynamics. Our methodology employs a hybrid quantum-classical optimization model that simultaneously optimizes for transaction efficiency, security robustness, user adoption rates, and regulatory compliance across the entire payment ecosystem. The research introduces three key innovations: a quantum annealing-based resource allocation algorithm that dynamically optimizes infrastructure investments; a behavioral nudging framework derived from prospect theory that enhances user adoption; and a cross-platform interoperability protocol that enables seamless integration across disparate payment systems. Results from implementation across three major banking institutions demonstrate a 47