Digital Payment Systems for Small to Middle-Sized Enterprises in Serbia

Abstract

The last twenty years have been characterized by the development of digital payment systems driven by innovations, deregulation, and the increased importance of technology users. This led to the appearance of many new products and actors in this field. This article reviews the current digital payment systems and their implication for SMEs (small to middle-sized enterprises) and entrepreneurs. The main objective is to identify and classify current payment technologies, and their trends, and explore their application in SMEs and entrepreneurs in Serbia. The following research questions are formulated: (1) what is the level of application of current payment methods in SMEs and entrepreneurs in Serbia, and (2) what prevents the spread of digital payment methods in these organizations? Research has been done on a sample of 108 SMEs and entrepreneurs from all regions of Serbia. The results show that digital payment methods’ usage depends on the transaction’s role. The biggest obstacle to the spread of digital payment technologies is the cost of implementation and use. The most significant benefits are improved administration, transaction speedup, and a reduced rate of errors. The research contributes by identifying the most frequently used digital payment systems and practical problems and suggesting possible solutions.