Assessing country-level privacy risk for digital payment systems

As we evolve in the digital age, new risks have emerged and are increasing the complexity of existing global digital ecosystems. These include privacy risks from cyberattacks and the threat of data misuse. Such privacy risks negatively affect consumer confidence, the reputation of an entity, and international consumerism. Prior studies have examined country-level risks, including economic, political, and financial risks; however, very little research has paid attention to country-level privacy risk. In this study, we focus on a key aspect of digital ecosystems, i.e., Digital Payment Systems (DPS). More specifically, we analyze the privacy policies of Mobile Wallets and Remittance (MWR) apps – a component of DPS that contributes to privacy debates- to assess their compliance with the General Data Protection Regulation (GDPR) in order to create a country-level privacy risk index for DPS. We create a framework to help convey country-level risks concerning DPS and inform comprehensive policy recommendations. The study reveals country-level data privacy and protection practices and provides recommendations for country-level risk assessment exercises. The research contributes to the digital payment ecosystem, privacy risks, privacy policy and regulatory compliance literature.