| Abstract [eng] |
This master’s thesis analyzes the impact of digital payment companies on bank profitability. The relevance of the topic is justified by the rapid growth of digital payment volumes in Europe and the increasing role of non-bank digital payment companies in the financial market, which may lead to changes in banks’ costs, revenues, and profitability indicators. The empirical study covers the period from 2018 to 2024 and includes country-level averages of bank indicators, macroeconomic indicators, and digital payment sector indicators. Regression analysis is applied to assess the impact, and in order to reveal market differences, the data are divided into two groups based on the number of digital payment companies in a country. The obtained results show that the impact of the development of the digital payment sector on bank profitability is not the same across different markets. In countries where the ecosystem of digital payment companies is more developed, profitability is more affected through the channel of increasing costs, which allows the interpretation of digital payment development as a factor promoting banks’ digital transformation and greater cost pressure. Meanwhile, in countries with lower intensity of digital payment companies, a positive impact of digital payment companies’ development on bank profitability is identified, which is associated with the overall improvement of the digital payments sector in the country, the growth of digital payment volumes, and higher customer engagement. |
