Payment Systems

The financial industry has witnessed the so-called “fintech revolution” in recent years. Due to the emergence of information technologies such as cloud computing, big data, blockchain and artificial intelligence, the landscape of the traditional financial industry has been largely transformed. The interplay between finance and technology has resulted in various new forms of financial services and products, like online P2P lending, digital-based banking, insurtech, bitcoin as well as the burgeoning mobile payment sector. Alipay, the mobile payment service arm of the Ant Financial Services Group (hereafter referred to as Ant Financial), is a perfect example to illustrate the ongoing fintech revolution and how it is disrupting the conventional retail banking model and payment industry. This article aims to introduce and analyse the world’s largest mobile payment system as well as some of the regulatory challenges it poses. It attempts to offer some guidance for legal practitioners in banking and finance, in particular, the multi-billion dollar fintech sector.

Key points:
- Backed by the e-commerce giant Alibaba, Alipay has become the world’s largest mobile payment system. Together with Wechat Pay, they dominate China’s $5.7trn mobile payment sector. Alipay has a presence in over 70 countries including the UK, US, Japan, South Korea and Australia.
- Due to the popularisation of mobile payment facilities, many Chinese cities have become a cashless (and cardless) society, as 40% of Chinese people carry almost no cash when going out.
- Alipay relies on the Quick Response code (or QR code) technology, in contrast to the Near Field Communication (NFC) adopted by competitors like Apple Pay.
- Mobile payments and fintech have provoked debate as to legal and regulatory issues such as the regulatory approval regime, data protection, fund security and fintech financing. Most recently, China has set up a unified clearing house for all mobile payment service providers to strengthen the industry supervision.

At first let’s define FinTech. As per Wiki Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. Hence FinTech could be the enabler of Mobile Financial Service, Digital Payment Service, iOT, Disruptive Technology and many more.
Now let’s discuss how FinTech is helping building ICT capacity and also highlight the present Digitalization condition and how much and where improvement required to have better digital economy.

Payment transactions through the use of various mobile applications have increased greatly in
recent years. Owing to the major changes that continue to occur in the payment service market
on 13 January 2018 Member States of the European Union should have implemented the
Directive of the European Parliament and the Council no. 2015/2366/EC (PSD II) in its
national legislation. The Directive is now under consideration of the EEA Joint Committee,
which intends to include it in the Agreement on the European Economic Area. This article
considers the preamble of the directive, applicable rules and the changes proposed by it. Issues
like the opportunities for new players in the market, liability for unauthorized payments and
strong customers authentication are considered to evaluate the implications of the directive. It
can be assumed that the implementation of PSD II will increase the number of payment service
users and stimulate competition by making it easier for the payment institutions to compete
with commercial banks in the payment service market. This is accompanied by challenges and
opportunities, both for market players and the government.

This paper develops and simulates a model of emergence of networks in an interbank, RTGS payment system. A number of banks, faced with random streams of payment orders, choose whether to link directly to the payment system, or to use a correspondent bank. Settling payments directly via the system imposes liquidity costs, which depend on the maximum liquidity overdraft incurred during the day. On the other hand, using a correspondent entails paying a flat fee, charged by the correspondent to recoup liquidity costs and to extract a profit. We specify a protocol whereby banks sequentially choose whether to link directly to the system or to become clients of other banks, thus generating a client-correspondent network. We calibrate our model on real data on the UK payment system, and we compare the networks it produces with i) the true client-correspondent network, ii) the outcomes of two ‘dummy' benchmark models. The model is found to outperform the benchmarks. Its predicted network...

This article looks in more depth at the different ways in which ideas about cashless societies were articulated and explored in pre-1900 utopian literature. Taking examples from the works of key writers such as Thomas More, Robert Owen, William Morris and Edward Bellamy, it discusses the different ways in which the problems associated with conventional notes-and-coins monetary systems were tackled as well as looking at the proposals for alternative payment systems to take their place. Ultimately, what it shows is that although the desire to dispense with cash and find a more efficient and less-exploitable payment system is certainly nothing new, the practical problems associated with actually implementing such a system remain hugely challenging.

This article explores the changing infrastructural architecture of global finance through the lens of Global Production Networks (GPNs). Financial markets infrastructure (FMI) for international payments and securities trading form the backbone of global finance. However, this FMI is typically hidden from observation, debate, and analysis, partly because international payments have functioned in broadly the same way for almost 50 years, governed by large global banks and the co-operative Society for Worldwide Interbank Financial Telecommunication (SWIFT). A global monopoly sensitive to geopolitical upheavals, SWIFT is increasingly influential in acting to the benefit of the world’s most powerful financial and political players. Thus, more than a mere passive facilitator of global economic activity, we argue in this paper that FMI forms a carefully crafted socio-economic system of geo-political relevance, whose core components ‘power’ and ‘embeddedness’ we seek to comprehend with the GPN framework. We introduce SWIFT as a key player in global FMI and establish a conceptual dialogue between the recently introduced notion of the GPNs of finance and the newly developed idea of the GPNs of financial infrastructure. Incorporating Allen’s (1997) power dimensions, we demonstrate their coexistence and complementarity in their carefully orchestrated, tightly intertwined global organizational arrangements. We show that SWIFT’s proneness to technological and organizational change threatens to reconfigure long-established actors, processes and relationships in and beyond finance, and argue that this makes an in-depth understanding of FMI vital.

The advent of socio-technical, cyber-physical and artificial intelligence systems has broadened the scope of requirements engineering, which must now deal with new classes of requirements, concerning ethics, privacy and trust. This brings new challenges to Requirements Engineering, in particular regarding the understanding of the non-functional requirements behind these new types of systems. To address this issue, we propose the Ontology-based Requirements Engineering (ObRE) method, which aims to systematize the elicitation and analysis of requirements, by using an ontology to conceptually clarify the meaning of a class of requirements, such as privacy, ethicality and trustworthiness. We illustrate the working of ObRE by applying it to a real case study concerning trustworthiness requirements.

Digital payments are dramatically increasing around the world. Global non-cash payments has observed an increased by 60% since 2015. This rapid growth has been a results of technological innovation and increased presence of regulation. Digital payments offer exciting opportunities and many banks and other financial institutions have been innovating in the domain. Established financial institutions, also also non-financial institution such as start ups or technology companies, are contributing significantly to financial technology innovation in the payments market. This article provides a comparison of two technological innovations and challenges, provides the basis for a conceptual framework on how to compare innovative digital payments solutions, such as future directions in the evolving payments landscape.

The core goal of this paper is to identify guidance on how the research community can better transition their research into payment card fraud detection towards a transformation away from the current unacceptable levels of payment card fraud.  Payment card fraud is a serious and long-term threat to society (Ryman-Tubb & d’Avila Garcez, 2010) with an economic impact forecast to be $416bn in 2017 (see Appendix A).  The proceeds of this fraud are known to finance terrorism, arms and drug crime.  Until recently the patterns of fraud (fraud vectors) have slowly evolved and the criminals modus operandi (MO) has remained unsophisticated.  Disruptive technologies such as smartphones, mobile payments, cloud computing and contactless payments have emerged almost simultaneously with large-scale data breaches.  This has led to a growth in new fraud vectors, so that the existing methods for detection are becoming less effective.  This in turn makes further research in this domain important.  In this context, a timely survey of published methods for payment card fraud detection is presented with the focus on methods that use AI and machine learning.  The purpose of the survey is to consistently benchmark payment card fraud detection methods for industry using transactional volumes in 2017.  This benchmark will show that only eight methods have a practical performance to be deployed in industry despite the body of research.  The key challenges in the application of artificial intelligence and machine learning to fraud detection are discerned.  Future directions are discussed and it is suggested that a cognitive computing approach is a promising research direction while encouraging industry data philanthropy.

The aim of this thesis is to provide a general overview of the current state of alternative payment systems with regard to their inclusion in the financial market, their properties and potentials for wider use, and to evaluate their possibilities to more effectively combat money laundering, terrorist financing and the proliferation of weapons of mass destruction. In the first chapter, the thesis explains the broader context with regard to financial systems, especially within the money market systems focusing on retail, while providing a deeper explanation of the context of European law and Czech law.
The second chapter is focused on closer analysis of alternative payment systems with regard to their use. Alternative payment systems are divided into two basic categories for centralized alternative payment systems and decentralized alternative payment systems. The category of centralized alternative payment systems corresponds to the current conventional financial market, taking into account the innovations that have emerged in recent years. Decentralized alternative payment systems are based on the DLT Blockchain technology and the Islamic Hawala payment system is analyzed as a purely informal, decentralized alternative payment system.
The third part of the diploma thesis provides analysis and possibilities of the law against money laundering and terrorist financing in connection with alternative payment systems. In the third part, the broader context of payment system is presented, while the implementation of recent AML directives is critically evaluated.
Key words: Payment services; Payment systems; Blockchain; Hawala; AML/CTF

Интернет стремительно проникает в нашу повседневную жизнь. Согласно различным статистическим отчетам, в развитых странах уже до 80-90 процентов людей являются активными пользователями интернета. Глобальная сеть предоставляет людям множество возможностей, в частности, позволяет совершать многие рутинные операции быстрее и дешевле.
Одна из таких возможностей – функция оплаты товаров и услуг не отходя от домашнего компьютера. Это позволяет экономить время при покупке товаров в набравших популярность в последние годы интернет-магазинах, оплачивать регулярные платежи по коммунальным услугам, а также приобретать различный контент (музыка, фильмы и т.д.). Такие широкие возможности появились в результате активного становления электронных платежных систем, которым удалось создать быстрый, относительно дешевый и безопасный способ платежа.
Вместе с тем, электронные платежные системы являются относительно новым кредитным институтом, который нуждается в подробном анализе и рассмотрении. Кроме того, современные системы электронных денег предоставляют так много возможностей, что значительная часть этой информации нуждается в систематизации.
Очевидно, что рассматриваемая тема данной работы является актуальной, так как в последние годы так называемые электронные деньги начинают играть все большую роль в платежах между агентами.
Цель данной работы – изучить особенности развития электронных платежных систем на территории России. Для достижения поставленной цели необходимо решить несколько задач:
Во-первых, рассмотреть структуру платежной системы Банка России. Иными словами, понять, каким образом осуществляются платежи между агентами. Это позволит понять в дальнейшем место электронных платежных систем в структуре общей российской платежной системы. Отдельно следует также рассмотреть законодательное регулирование платежных операций в Российской Федерации.
Во-вторых, рассмотреть вопросы законодательного регулирования электронных платежных систем. Это важная задача данного исследования, так как долгое время электронные деньги существовали фактически вне законодательного поля, и каждая платежная система давала собственную юридическую трактовку эмитируемых ею электронных денег. В последние же годы в этой сфере произошло достаточно много изменений, которые крайне важно проанализировать в рамках текущего исследования. 
В-третьих, провести анализ эффективности использования электронных денег для оплаты тех или иных товаров. Для решения этой задачи необходимо построить математическую модель, с помощью которой постараться объяснить, почему те или иные товары люди предпочитают оплачивать с помощью электронных денег, а другие – с помощью безналичных. 
В-четвертых, на примере реального проекта Moneygamers.ru рассмотреть основные сложности, с которыми сталкиваются коммерческие организации при подключении систем электронных платежей к своему сайту. В рамках решения данной задачи необходимо показать основные методы, которые использовались для того, чтобы организовать прием денежных средств на сайте наиболее эффективных способом, при этом учесть как финансовые факторы, так и юридически-налоговые.
Таким образом, объектом исследования в данной работе являются электронные платежные системы. Предметом исследования являются теоретические материалы по данному вопросу, действующее законодательство в сфере платежных систем, сайты наиболее популярных платежных систем в Интернете и их агрегаторов, а также различные статистические данные.
Основным методом исследования в работе будет являться анализ.

Teknoloji kullanımının gün geçtikçe artması sonucu bankaların ürün ve hizmet çeşitliliği artmıştır. Bununla birlikte elektronik ödeme araçlarının da farklı türleri ortaya çıkmıştır. Günümüzde bireyler ve kurumlar elektronik ödeme araçlarını kullanarak yatırım ve finansal işlemlerini kolaylıkla gerçekleştirmektedirler. Çalışmada AB üyesi olma yolunda ilerleyen Türkiye’de ve bir AB ülkesi olan İtalya’da elektronik ödeme araçlarının geçmişi ve bugünü incelenmiş ve karşılaştırılmıştır. Çalışmanın sonucunda; günümüzde en yaygın olarak kullanılan kartlı ödeme sistemleri ile Türkiye’de İtalya’ya göre daha fazla harcama yapıldığına ulaşılmıştır. Aynı şekilde internetten yapılan ödemelerdeki artış hızı Türkiye’de yüzde 50 iken İtalya’da yüzde 18’dir.
As a result of growing the use of technology, variety of banks products and services has been increased. However, different types of electronic payment instruments have emerged. Today, by using of electronic payment instruments, people and institutions have done investment and financial transactions easily. In the study, past and today of electronic payment instruments which are being used in Turkey (which is an applicant for European Union) and Italy (which is an initiate of European Union) are examined and compared. By using card payment systems which are being used commonly in today, there is more spending in Turkey to Italy. Similarly, growth rate of payments which made from internet in Turkey is 50 percent and in Italy is 18 percent.

The changing market dynamics in addition to globalisation and increasing internationalisation and trade needs effective and improved cross-border payment system, but the currently existing systems were found to be ineffective simply because of the range of challenges and inefficiencies. These challenges range from the lack of transparency to the unavailability of real-time information related to foreign exchange; thereby calling for an improved and efficient platform and a system that can ensure improvement in cross-border payments and transactions.

The new e-money regulatory law affects not only e-money issuers but also, for the first time, intermediaries of e-money issuers involved in the distribution or redemption of e-money. A kiosk or supermarket operator which sells or charges pre-paid cards for an e-money issuer will be classified as an 'e-money agent'. Under the new law, these intermediaries are subject to a regulatory regime of their own.

Disconnecting Russia from SWIFT is one of the most widely discussed potential sanctions in the econtext of the Ukraine crisis. Many contributions to the debate are not sufficiently familiar with the functions of SWIFT. In order to put the discussion on a more firm ground, I'm making this chapter already available although it will only be published much later. The chapter puts SWIFT into the context of discussions about financialization and state capitalism, clarifies the role of SWIFT in the global payment infrastructure, takes stock of the various political affairs about SWIFT and discusses Chinese and Russian alternatives to SWIFT as well as to the existing cross-border payments infrastructure more generally.

With the advancement of technology and after a flurry of panic and confusion of Demonetisation, India has also moved towards a cashless economy. The emphasis on online transactions and other digital cash payment methods provide convenience and additional benefits to the consumer. To incentivize the citizens in moving towards a cashless economy, the Government and also the digital payment companies have come up with attractive discounts, offers and freebies on online transactions. Their easily targeted audience is the younger generation, especially the students, who love to get anything for free regardless of its economic value. The very thought of getting something for zero cost increases their willingness to spend more for the free good just because they receive more than what they actually paid for. Through this study we intend to study the preference patterns of University students from South Bangalore for digital payment methods over cash in their average daily spending trends, their attraction towards giveaways, to understand the issues of digital transactions faced by students within the campus and also suggest some possible measures for the same.

The now-popular “cash diet” hails that paying in cash is more painful psychologically than via dematerialized money (e.g., credit cards), which in turn helps citizens save more. Paradoxically, we show cash can sometimes backfire (compared to dematerialized money) and cause consumers to save less and/or forego lucrative investment opportunities.

Payment infrastructures are going through rapid change with the rise of next generation mobile networks and smartphone ownership. From mobile wallets to rideshare apps, social payments allow users to split receipts with friends, charge exes for breakup expenses, or troll celebrities. New layers of data, sociality, and markets are being created and influenced by expanding economic imaginaries, regulations, and business models leveraging these new infrastructures. In this paper we discuss how mobile payment systems have become social media. After discussing the recent history of mobile payments innovation-SMS, mobile wallets, delivery and ridesharing apps-we examine Venmo, a social payments platform that allows users to broadcast transactions to a social activity stream or public transaction feed. Our findings detail how transaction feeds of mobile payments support social practices, communication, and commerce with mobile devices and wireless networks. We present findings from a case study on Venmo to develop some implications for the design, study, and impact of mobile payment infrastructures as social media. CCS CONCEPTS • Human-centered computing~Collaborative and social computing • Human-centered computing~Social media

This Continuous Assessment (CA) is part of module Global Transaction, Banking and Payment Systems (Duane, 2015). The topic chosen for this CA is ‘Ripple protocol’ and its role in developing a banking payment system in regards to other acknowledged systems out there.  First there is a literature overview of future of financial systems lead by new guidelines and legislations, as a result of last crisis, environment concern and information communication technology (ICT) influence on finance-banking sector.  With explanation of virtual currencies and their terms for better understanding of the Ripple protocol and how it works and who is it made for to use.  Second there is discussion on different most used systems (SWIFT, Bitcoin, and Ripple). And third is made a conclusion of the role of Ripple and the systems discussed and overview of literature on financial systems.


Key words: Ripple protocol, XRP, transaction network, digital currency, FX.

The challenging step is to build out a National Payment System from the RTGS, involving the integration of existing disparate payment systems such as the mobile money services. The end goal is to establish a fully integrated service, supporting interoperability based on a regime of regulation and standardization to minimize systemic risk.

Pay-what-you-want “PWYW” is a growing pricing strategy that has received a lot of attention in
recent years. This research used a survey strategy executed amongst seven different nationalities to
find out whether the buyer’s culture has an impact on the amount paid in a PWYW pricing strategy.
To this end, nationality was used as a proxy for culture and Hofstede’s dimensions for culture were
used as a framework to turn culture into measurable variables. In line with previous researches, it
was found that the amount paid in PWYW is significantly different from zero and that PWYW could
indeed likely be a viable and even profitable alternative to traditional pricing strategies. The results
showed that culture actually has a significant impact on the amount paid but the differences between
nationalities could not be explained by Hofstede’s dimensions. A few educated proposals for variables
that could explain the differences between nationalities were made and suggested for future
research. Furthermore this research surprisingly found that having paid with PWYW before might be
an important variable with a significant, strong and positive impact on the amount paid. The results
also suggested that the amount paid in a PWYW scenario may be product category dependent,
meaning PWYW might be more or less viable depending on the good or service offered. Finally this
research gives a few additional remarks amongst which a critical assessment of Hofstede’s framework
in the context of this research.

Why are banks important to us? To understand the role banks play in providing transaction services, I study an episode from Kenya where individuals use an alternative medium of exchange (M-Pesa), where cellphone minutes take on the role of currency – mobile money. Individuals do not have easy access to banking services and therefore face several risks while transacting with and storing cash, and hence M-Pesa pitches in as a substitute to banks. Theoretically, I consider an analogous environment by using a search-theoretic monetary model to establish important results. Using survey data from Kenya, I study the usage of this facility and find that individuals’ perceived riskiness of cash and their geographical distance from banks are key determinants of usage, confirming the hypotheses from the model.

Der Markt für Payment Service Provider (PSP) in Deutschland ist in der Breite weitgehend unbekannt und folglich sind dessen Merkmale und Wettbewerbsstruktur selbst bei branchenfremden Finanzexperten nur eingeschränkt bekannt. Dies ist u.a. darauf zurückzuführen, dass es sich um einen B2B-Markt handelt mit einer, im Vergleich zu anderen Finanzdienstleistungen, eher kurzen Historie. Das PSP-Geschäft hat allerdings in den letzten Jahren stark an wirtschaftlicher Bedeutung gewonnen, nicht zuletzt aufgrund des rasanten Wachstums des internetbasierten Handels. Diese neu gewonnene Stärke wurde für jedermann durch den Aufstieg des vermeintlichen Marktführers Wirecard AG in den DAX im September 2018 dokumentiert.

Mit der publikationsträchtigen Aufwertung der Wirecard AG verband sich die Erwartung, dass PSPs eine zunehmend wichtige Rolle im Markt für Finanzdienstleistungen spielen werden. Dem mittlerweile insolventen Unternehmen wurde zeitweilig gar der Status der Systemrelevanz zugesprochen, z.B. dokumentiert durch das mit ebensolchem begründete Leerverkaufsverbot durch die BaFin.  Die schleppende Aufarbeitung des Wirecard-Skandals und die damit einhergehende Diskussion, ob das Unternehmen tatsächlich jemals systemrelevanten Charakter erlangt hat, dokumentiert die Intransparenz des deutschen PSP-Marktes. Wenn über Jahre die Herkunft fiktiver Umsätze durch sogenannte Marktexperten nicht hinterfragt wird (trotz deutlicher Hinweise aus dem Ausland), dann belegt dies auch mangelndes Grundverständnis des PSP-Geschäftes an sich. Diese Mankos sollen durch den vorliegenden Beitrag adressiert werden.

Dabei geht es auch um die Frage, ob doch Hidden Champions im deutschen PSP-Markt zu finden sind. In einem ersten Schritt konkretisiert dieser Beitrag die Organisationsform PSP. Die Ausführungen sollen verdeutlichen, wie die Besonderheiten des eCommerce-Handels Entstehung und Wachstum des PSP-Marktes bis heute fördern und prägen. Daran anknüpfend werden in einem zweiten Schritt die Geschäftsmodelle der PSPs und deren wesentliche Werttreiber analysiert. Darauf aufbauend wird, drittens, die aktuelle Marktstruktur anhand der Umsätze der von PSPs betreuten Händler beschrieben. Dies ermöglicht Aussagen bezüglich Marktkonzentration und Wettbewerbsintensität. Dadurch kann dann, viertens, die übergeordnete Fragestellung zu möglichen Hidden Champions adressiert werden.

BACH operation is operated under 'BACPS rules and procedures', Published on 17.01.2010 and 'BEFTN Operating Rules' issued on 10.08.2010 by the Central Bank of Bangladesh i.e. Bangladesh Bank. All scheduled commercial banks are participating bank in this system where Bangladesh Bank is functioning as the 'Operator' of the BACH.

The payments business in India is on the cusp of a revolution. With rapid
growth and modernization of the economy, there is no doubt that a majority of India’s 1.2 billion plus citizens will demand and get modern financial services far superior to what their parents’ generation enjoyed. It is simply a matter of when the supply side catches up. This report is the product of a research effort that analyzed the most pertinent policy documents, reports, scholarship, expert interviews, and payments data.
It is the second in a series of country reports on The Cost of Cash by the Institute for Business in the Global Context (IBGC). The series seeks to ascertain the private costs and risks of cash management facing diverse stakeholders in society: consumers, business, government, and financial
systems. It does not forecast the likelihood that cash will fall into disuse, or drop below any threshold in payment market share. It is different from much of the academic work in payment economics, which focuses explicitly on social costs with a view toward informing debates around
payment clearing and settlement. Instead, we analyze the private costs to households and businesses that arise from their use of cash, beginning when cash is received and ending when it is spent again. We base our estimates on original IBGC surveys, coauthors’ surveys and interviews, and a broad mix of academic studies and official statistics.
The motivating question is why Indians transact primarily in cash, and whether there is reason to expect any drastic change in their payment behavior in the short to medium term.

M-payments, which refer to payments over a mobile device, have not taken off as fast as predicted. Their slow adoption
rates raise many questions about what drives consumer behaviour. The aim of this study is to find out what influences the
user acceptance of a new system. The user is seen here as the key to acceptance of a new m-payment procedure, hence
the focus on understanding their motivations and attitudes. To predict acceptance, Technology Acceptance Model (TAM)
has been extensively used in information systems. This study is based on the belief that TAM needs to be expanded and
customized to suit specific characteristics of mobile payments. This paper draws from prior studies that used TAM in
fields related to mobile payments. Extensions of TAM in related fields are depicted. Analysis of suitability of various
acceptance factors for mobile payments follows. The result of the analysis is a set of factors that are believed to influence
the user acceptance of mobile payments: perceived ease of use, usefulness, mobility, cost, trust, and expressiveness. To
measure each of these factors, multi-item scales using specific criteria are proposed. Further research will involve pilot
study and possible improvement of the measuring scales, as well as further empirical validation of the model. The
proposed model illustrates the level of fulfilment of each of the six acceptance factors in an m-payment system, and
therefore predicts its adoption, as well as indicates areas of improvement.

Entrepreneurs enter new markets to find high-growth areas. Bitcoin is a cryptographic, software networked, complexly engineered, high energy consuming, permission-less and programmable crypto-currency. Bitcoin appears to be in higher demand among social entrepreneurs than customers resulting in a Pygmalion Effect. The purpose of the study is to examine three main questions: (1) Will Bitcoin’s marketing gain a sustainable traction as a currency of choice for daily transactions? (2) Will Bitcoin scale to become a major payment network on a global scale? (3) Will Bitcoin be replaced by multiple viable crypto-currencies? The study explored how Bitcoins Pygmalion effect will impact consumer’s privacy, purchasing-habits and business-relationships with cross border payments within the framework of crypto-currency. This study draws on the works of Reither et al. (2017), Yates (2017), Ortisi et al (2016), Bert and Chris (2017), Reijers (2016), Houy and Nicholas (2014). The research method of the study is based on the quality content analysis and primarily relied on the recent research articles, and surveys. The findings contribute to the existing discussion on the Bitcoin mining and the marketing of the cryptographic tokens and block-chain technologies. This study posits that bitcoin has value because both the Pygmalion entrepreneurs and customers believe that it has value and it is likely to be among mainstream global viable currencies. The final sections provide directions for future research on how crypto-companies need to build their distinct message and project it into the larger block-chain conversation for social entrepreneurs. Key implications for researchers, practitioners and policy makers are highlighted.