Abstract

The digitization of payment systems in large-scale distribution networks represents a transformative shift in how financial transactions are executed, monitored, and optimized. Traditional payment mechanisms, often reliant on manual processes and legacy infrastructures, face challenges in scalability, transparency, and operational efficiency. This review explores transition models that enable the systematic digitization of payment systems, focusing on frameworks that integrate digital wallets, blockchain technologies, mobile money, and centralized platforms for improved efficiency and accountability. It examines case studies of large-scale distribution networks across diverse sectors—including supply chains, utilities, and retail—and identifies key enablers such as regulatory frameworks, interoperability standards, cybersecurity, and financial inclusion policies. Furthermore, the paper evaluates the socio-economic implications of digitized payment systems, highlighting benefits such as enhanced liquidity management, real-time transaction visibility, fraud reduction, and improved stakeholder trust. Challenges including digital literacy gaps, infrastructure costs, and data privacy concerns are also addressed. The study concludes by proposing a transition model that balances technological innovation, regulatory compliance, and user-centric adoption strategies to ensure sustainable digitization of payment systems in large-scale distribution networks.