Innovative disruption in financial technology and payment systems

https://doi.org/10.35912/ijfam.v7i2.3133
Published: Sep 15, 2025

Abstract:

Purpose: This study explores the transformative impact of financial technology (fintech) on the global financial services industry, focusing on innovations, regulatory implications, and challenges. The research aims to identify key technological disruptions, examine the regulatory landscape, and highlight opportunities and risks introduced by fintech.

Methodology/approach: A Systematic Literature Review (SLR) was conducted using SCOPUS, IEEE Xplore, and ScienceDirect. Following a structured protocol, 153 peer-reviewed articles (2014–2019) were analysed through thematic and meta-analytical approaches. The study adopted an interpretative philosophy and used the PICOC framework to refine search precision and synthesis.

Results/findings: The analysis reveals fintech’s disruptive innovations in financing and payment systems, such as peer-to-peer (P2P) lending, crowdfunding, blockchain-enabled transactions, and mobile payments. These services have enhanced financial inclusion, operational efficiency, and customer accessibility. Regulatory frameworks have evolved in parallel, though challenges remain in addressing moral hazard, cybersecurity, and compliance. Geographically, Asia, particularly China and Indonesia, leads fintech research and implementation.

Conclusion: Fintech has significantly reshaped financial ecosystems by enabling decentralized financial services, accelerating digital transactions, and fostering inclusivity. However, cybersecurity risks, limited regulatory clarity, and uneven global adoption continue to impede its sustainable integration.

Limitations: The study is limited to English-language literature from 2014–2019 and may not capture recent post-pandemic developments or region-specific innovations in Islamic or informal economies.

Contribution: This paper contributes a comprehensive synthesis of fintech’s evolution, identifies existing gaps, and offers insights for policymakers, financial institutions, and researchers to foster a balanced, secure, and innovative financial environment.

Keywords:
1. Blockchain
2. Fintech
3. Global Financial Ecosystem
4. P2P lending
5. SLR
Authors:
Pushpalika Chatterjee
Senior Engineering Manager in Payments, USA
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How to Cite
Chatterjee, P. (2025). Innovative disruption in financial technology and payment systems. International Journal of Financial, Accounting, and Management, 7(2), 289–301. https://doi.org/10.35912/ijfam.v7i2.3133
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Issue & Section
Vol. 7 No. 2 (2025): September
Articles
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References

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    Arner, D. W., Barberis, J., & Buckley, R. P. (2015). The Evolution Of Fintech: A New Post-Crisis Paradigm. Geo. J. Int'l L., 47, 1271. doi:https://doi.org/10.2139/ssrn.2676553

    Barbi, M., & Mattioli, S. (2019). Human Capital, Investor Trust, And Equity Crowdfunding. Research in International Business and Finance, 49, 1-12. doi:https://doi.org/10.1016/j.ribaf.2019.02.005

    Brummer, C., & Gorfine, D. (2014). Fintech: Building A 21st-Century Regulator’s Toolkit. Milken Institute, 5.

    Drummer, D., Feuerriegel, S., & Neumann, D. (2017). Crossing The Next Frontier: The Role Of Ict In Driving The Financialization Of Credit. Journal of Information Technology, 32(3), 218-233. doi:https://doi.org/10.1057/s41265-017-0035-9

    Fernando, E., & Touriano, D. (2018). Development And Validation Of Instruments Adoption Fintech Services In Indonesia (Perspective Of Trust And Risk). International Conference On Sustainable Information Engineering And Technology (Siet), 283-287. doi:https://doi.org/10.1109/siet.2018.8693192

    Funke, M., Li, X., & Tsang, A. (2019). Monetary Policy Shocks And Peer-To-Peer Lending In China: BOFIT Discussion Papers.

    Gimpel, H., Rau, D., & Röglinger, M. (2018). Understanding FinTech start-ups–a taxonomy of consumer-oriented service offerings. Electronic Markets, 28(3), 245-264. doi:https://doi.org/10.1007/s12525-017-0275-0

    Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On The Fintech Revolution: Interpreting The Forces Of Innovation, Disruption, And Transformation In Financial Services. Journal of management information systems, 35(1), 220-265. doi:https://doi.org/10.1080/07421222.2018.1440766

    Holden, M. T., & Lynch, P. (2004). Choosing The Appropriate Methodology: Understanding Research Philosophy. The marketing review, 4(4), 397-409. doi:https://doi.org/10.1362/1469347042772428

    Huang, R. H. (2018). Online P2p Lending And Regulatory Responses In China: Opportunities And Challenges. European Business Organization Law Review, 19(1), 63-92. doi:https://doi.org/10.1007/s40804-018-0100-z

    Iman, N. (2018). Assessing The Dynamics Of Fintech In Indonesia. Investment Management and Financial Innovations, 15(4), 296-303. doi:https://doi.org/10.21511/imfi.15(4).2018.24

    Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, Business Models, Investment Decisions, And Challenges. Business horizons, 61(1), 35-46. doi:https://doi.org/10.1016/j.bushor.2017.09.003

    Lee, J. Y. (2020). Prediction of Default Risk in Peer-to-Peer Lending Using Structured and Unstructured Data. Journal of Financial Counseling and Planning, 31(1), 115-129. doi:https://doi.org/10.1891/jfcp-18-00073

    Marot, E., Fernandez, G., Carrick, J., & Hsi, J. (2017). Investing In Online Peer To Peer Loans: A Platform For Alpha. Journal of Applied Business and Economics, 19(2), 86–92.

    Minto, A., Voelkerling, M., & Wulff, M. (2017). Separating apples from oranges: Identifying threats to financial stability originating from FinTech. Capital markets law journal, 12(4), 428-465. doi:https://doi.org/10.1093/cmlj/kmx035

    Nair, D., Veeragandham, M., Pamnani, P., Prasad, S., & Guruprasad, M. (2021). Impact of COVID-19 On Fintech Industry. International Journal of Research in Engineering, Science and Management, 4(2), 27-34. doi:https://doi.org/10.47607/ijresm.2021.496

    Najaf, K., Subramaniam, R. K., & Atayah, O. F. (2022). Understanding The Implications Of Fintech Peer-To-Peer (P2p) Lending During The Covid-19 Pandemic. Journal of Sustainable Finance & Investment, 12(1), 87-102. doi:https://doi.org/10.1080/20430795.2021.1917225

    Nathan, R. J., Setiawan, B., & Quynh, M. N. (2022). Fintech And Financial Health In Vietnam During The Covid-19 Pandemic: In-Depth Descriptive Analysis. Journal of Risk and Financial Management, 15(3), 125. doi:https://doi.org/10.3390/jrfm15030125

    Nomakuchi, T. (2018). A case study on fintech in Japan based on keystone strategy. Paper presented at the 2018 Portland international conference on management of engineering and technology (PICMET).

    PA, I. (2018). Innovations in Financing SMEs: A Study on the Growth of Crowdfunding in India. Wealth: International Journal of Money, Banking & Finance, 7(3), 66–75.

    Puschmann, T. (2017). Fintech. Business & Information Systems Engineering, 59(1), 69-76. doi:https://doi.org/10.1007/s12599-017-0464-6

    Rabbani, M. R. (2022). Fintech Innovations, Scope, Challenges, And Implications In Islamic Finance: A Systematic Analysis. International Journal of Computing and Digital Systems, 11(1), 1-28.

    Raharja, S. u. J., Muhyi, H. A., & Herawaty, T. (2020). Digital Payment As An Enabler For Business Opportunities: A Go-Pay Case Study. Review of Integrative Business and Economics Research, 9, 319-329.

    Rosavina, M., Rahadi, R. A., Kitri, M. L., Nuraeni, S., & Mayangsari, L. (2019). P2p Lending Adoption By Smes In Indonesia. Qualitative Research in Financial Markets, 11(2), 260-279. doi:https://doi.org/10.1108/qrfm-09-2018-0103

    Saksonova, S., & Kuzmina-Merlino, I. (2017). Fintech As Financial Innovation–The Possibilities And Problems Of Implementation. European Research Studies Journal, XX(3A), 961-973. doi:https://doi.org/10.35808/ersj/757

    Schindler, J. (2017). FinTech and financial innovation: Drivers and depth. Washington: Board of Governors of the Federal Reserve System. doi:https://doi.org/10.17016/feds.2017.081

    Schulte, P., & Liu, G. (2018). Fintech Is Merging With Iot And Ai To Challenge Banks: How Entrenched Interests Can Prepare. The Journal of alternative investments, 20(3), 41. doi:https://doi.org/10.3905/jai.2017.2017.1.059

    Shin, Y. J., & Choi, Y. (2019). Feasibility Of The Fintech Industry As An Innovation Platform For Sustainable Economic Growth In Korea. Sustainability, 11(19), 5351. doi:https://doi.org/10.3390/su11195351

    Snyder, H. (2019). Literature Review As A Research Methodology: An Overview And Guidelines. Journal of Business Research, 104, 333-339. doi:https://doi.org/10.1016/j.jbusres.2019.07.039

    Sun, Y., Li, S., & Wang, R. (2023). Fintech: From Budding To Explosion-An Overview Of The Current State Of Research. Review of Managerial Science, 17(3), 715-755. doi:https://doi.org/10.1007/s11846-021-00513-5

    Suryono, R. R., Purwandari, B., & Budi, I. (2019). Peer To Peer (P2P) Lending Problems And Potential Solutions: A Systematic Literature Review. Procedia Computer Science, 161, 204-214. doi:https://doi.org/10.1016/j.procs.2019.11.116

    Teja, A. (2017). Indonesian Fintech Business: New Innovations Or Foster And Collaborate In Business Ecosystems? The Asian Journal of Technology Management, 10(1), 10. doi:https://doi.org/10.12695/ajtm.2017.10.1.2

    Toderacu, C., & Oprea, O.-R. (2021). The Impact Of Financial Innovation In The Context Of The Covid-19 Crisis In Emerging Economies.

    Wang, J.-H., Hsieh, Y.-S., Chiang, C.-H., & Lo, H.-C. (2022). Assessing The Financial Innovation System Within Fintech Development: Technology Innovation System Perspective. Journal of Insurance and Financial Management, 6(1), 46-62. doi:https://doi.org/10.3389/fenvs.2022.1056478

    Wang, S. (2021). Opportunities of Financial Technology Under the Impact of COVID-19. 6th International Conference On Financial Innovation And Economic Development (Icfied 2021), 529-532. doi:https://doi.org/10.2991/aebmr.k.210319.097

    Zetzsche, D., & Preiner, C. (2018). Cross-Border Crowdfunding: Towards A Single Crowdlending And Crowdinvesting Market For Europe. European Business Organization Law Review, 19(2), 217-251. doi:https://doi.org/10.1007/s40804-018-0110-x

    Zhang, Y., Xing, C., & Guo, X. (2023). The Shielding Effect Of Access To Finance On Small And Medium-Sized Enterprises During The Covid-19 Crisis: Comparing Fintech And Traditional Finance. Emerging Markets Finance and Trade, 59(8), 2383-2397. doi:https://doi.org/10.1080/1540496x.2022.2072201

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  2. Arner, D. W., Barberis, J., & Buckley, R. P. (2015). The Evolution Of Fintech: A New Post-Crisis Paradigm. Geo. J. Int'l L., 47, 1271. doi:https://doi.org/10.2139/ssrn.2676553
  3. Barbi, M., & Mattioli, S. (2019). Human Capital, Investor Trust, And Equity Crowdfunding. Research in International Business and Finance, 49, 1-12. doi:https://doi.org/10.1016/j.ribaf.2019.02.005
  4. Brummer, C., & Gorfine, D. (2014). Fintech: Building A 21st-Century Regulator’s Toolkit. Milken Institute, 5.
  5. Drummer, D., Feuerriegel, S., & Neumann, D. (2017). Crossing The Next Frontier: The Role Of Ict In Driving The Financialization Of Credit. Journal of Information Technology, 32(3), 218-233. doi:https://doi.org/10.1057/s41265-017-0035-9
  6. Fernando, E., & Touriano, D. (2018). Development And Validation Of Instruments Adoption Fintech Services In Indonesia (Perspective Of Trust And Risk). International Conference On Sustainable Information Engineering And Technology (Siet), 283-287. doi:https://doi.org/10.1109/siet.2018.8693192
  7. Funke, M., Li, X., & Tsang, A. (2019). Monetary Policy Shocks And Peer-To-Peer Lending In China: BOFIT Discussion Papers.
  8. Gimpel, H., Rau, D., & Röglinger, M. (2018). Understanding FinTech start-ups–a taxonomy of consumer-oriented service offerings. Electronic Markets, 28(3), 245-264. doi:https://doi.org/10.1007/s12525-017-0275-0
  9. Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On The Fintech Revolution: Interpreting The Forces Of Innovation, Disruption, And Transformation In Financial Services. Journal of management information systems, 35(1), 220-265. doi:https://doi.org/10.1080/07421222.2018.1440766
  10. Holden, M. T., & Lynch, P. (2004). Choosing The Appropriate Methodology: Understanding Research Philosophy. The marketing review, 4(4), 397-409. doi:https://doi.org/10.1362/1469347042772428
  11. Huang, R. H. (2018). Online P2p Lending And Regulatory Responses In China: Opportunities And Challenges. European Business Organization Law Review, 19(1), 63-92. doi:https://doi.org/10.1007/s40804-018-0100-z
  12. Iman, N. (2018). Assessing The Dynamics Of Fintech In Indonesia. Investment Management and Financial Innovations, 15(4), 296-303. doi:https://doi.org/10.21511/imfi.15(4).2018.24
  13. Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, Business Models, Investment Decisions, And Challenges. Business horizons, 61(1), 35-46. doi:https://doi.org/10.1016/j.bushor.2017.09.003
  14. Lee, J. Y. (2020). Prediction of Default Risk in Peer-to-Peer Lending Using Structured and Unstructured Data. Journal of Financial Counseling and Planning, 31(1), 115-129. doi:https://doi.org/10.1891/jfcp-18-00073
  15. Marot, E., Fernandez, G., Carrick, J., & Hsi, J. (2017). Investing In Online Peer To Peer Loans: A Platform For Alpha. Journal of Applied Business and Economics, 19(2), 86–92.
  16. Minto, A., Voelkerling, M., & Wulff, M. (2017). Separating apples from oranges: Identifying threats to financial stability originating from FinTech. Capital markets law journal, 12(4), 428-465. doi:https://doi.org/10.1093/cmlj/kmx035
  17. Nair, D., Veeragandham, M., Pamnani, P., Prasad, S., & Guruprasad, M. (2021). Impact of COVID-19 On Fintech Industry. International Journal of Research in Engineering, Science and Management, 4(2), 27-34. doi:https://doi.org/10.47607/ijresm.2021.496
  18. Najaf, K., Subramaniam, R. K., & Atayah, O. F. (2022). Understanding The Implications Of Fintech Peer-To-Peer (P2p) Lending During The Covid-19 Pandemic. Journal of Sustainable Finance & Investment, 12(1), 87-102. doi:https://doi.org/10.1080/20430795.2021.1917225
  19. Nathan, R. J., Setiawan, B., & Quynh, M. N. (2022). Fintech And Financial Health In Vietnam During The Covid-19 Pandemic: In-Depth Descriptive Analysis. Journal of Risk and Financial Management, 15(3), 125. doi:https://doi.org/10.3390/jrfm15030125
  20. Nomakuchi, T. (2018). A case study on fintech in Japan based on keystone strategy. Paper presented at the 2018 Portland international conference on management of engineering and technology (PICMET).
  21. PA, I. (2018). Innovations in Financing SMEs: A Study on the Growth of Crowdfunding in India. Wealth: International Journal of Money, Banking & Finance, 7(3), 66–75.
  22. Puschmann, T. (2017). Fintech. Business & Information Systems Engineering, 59(1), 69-76. doi:https://doi.org/10.1007/s12599-017-0464-6
  23. Rabbani, M. R. (2022). Fintech Innovations, Scope, Challenges, And Implications In Islamic Finance: A Systematic Analysis. International Journal of Computing and Digital Systems, 11(1), 1-28.
  24. Raharja, S. u. J., Muhyi, H. A., & Herawaty, T. (2020). Digital Payment As An Enabler For Business Opportunities: A Go-Pay Case Study. Review of Integrative Business and Economics Research, 9, 319-329.
  25. Rosavina, M., Rahadi, R. A., Kitri, M. L., Nuraeni, S., & Mayangsari, L. (2019). P2p Lending Adoption By Smes In Indonesia. Qualitative Research in Financial Markets, 11(2), 260-279. doi:https://doi.org/10.1108/qrfm-09-2018-0103
  26. Saksonova, S., & Kuzmina-Merlino, I. (2017). Fintech As Financial Innovation–The Possibilities And Problems Of Implementation. European Research Studies Journal, XX(3A), 961-973. doi:https://doi.org/10.35808/ersj/757
  27. Schindler, J. (2017). FinTech and financial innovation: Drivers and depth. Washington: Board of Governors of the Federal Reserve System. doi:https://doi.org/10.17016/feds.2017.081
  28. Schulte, P., & Liu, G. (2018). Fintech Is Merging With Iot And Ai To Challenge Banks: How Entrenched Interests Can Prepare. The Journal of alternative investments, 20(3), 41. doi:https://doi.org/10.3905/jai.2017.2017.1.059
  29. Shin, Y. J., & Choi, Y. (2019). Feasibility Of The Fintech Industry As An Innovation Platform For Sustainable Economic Growth In Korea. Sustainability, 11(19), 5351. doi:https://doi.org/10.3390/su11195351
  30. Snyder, H. (2019). Literature Review As A Research Methodology: An Overview And Guidelines. Journal of Business Research, 104, 333-339. doi:https://doi.org/10.1016/j.jbusres.2019.07.039
  31. Sun, Y., Li, S., & Wang, R. (2023). Fintech: From Budding To Explosion-An Overview Of The Current State Of Research. Review of Managerial Science, 17(3), 715-755. doi:https://doi.org/10.1007/s11846-021-00513-5
  32. Suryono, R. R., Purwandari, B., & Budi, I. (2019). Peer To Peer (P2P) Lending Problems And Potential Solutions: A Systematic Literature Review. Procedia Computer Science, 161, 204-214. doi:https://doi.org/10.1016/j.procs.2019.11.116
  33. Teja, A. (2017). Indonesian Fintech Business: New Innovations Or Foster And Collaborate In Business Ecosystems? The Asian Journal of Technology Management, 10(1), 10. doi:https://doi.org/10.12695/ajtm.2017.10.1.2
  34. Toderacu, C., & Oprea, O.-R. (2021). The Impact Of Financial Innovation In The Context Of The Covid-19 Crisis In Emerging Economies.
  35. Wang, J.-H., Hsieh, Y.-S., Chiang, C.-H., & Lo, H.-C. (2022). Assessing The Financial Innovation System Within Fintech Development: Technology Innovation System Perspective. Journal of Insurance and Financial Management, 6(1), 46-62. doi:https://doi.org/10.3389/fenvs.2022.1056478
  36. Wang, S. (2021). Opportunities of Financial Technology Under the Impact of COVID-19. 6th International Conference On Financial Innovation And Economic Development (Icfied 2021), 529-532. doi:https://doi.org/10.2991/aebmr.k.210319.097
  37. Zetzsche, D., & Preiner, C. (2018). Cross-Border Crowdfunding: Towards A Single Crowdlending And Crowdinvesting Market For Europe. European Business Organization Law Review, 19(2), 217-251. doi:https://doi.org/10.1007/s40804-018-0110-x
  38. Zhang, Y., Xing, C., & Guo, X. (2023). The Shielding Effect Of Access To Finance On Small And Medium-Sized Enterprises During The Covid-19 Crisis: Comparing Fintech And Traditional Finance. Emerging Markets Finance and Trade, 59(8), 2383-2397. doi:https://doi.org/10.1080/1540496x.2022.2072201