FA596 Digital Payment Technologies and Trends
Course Catalog Description
Introduction
This course introduces students to the up-to-date payment systems and innovative financial technologies (FinTech) in the payment systems.
Common payment systems such as checking, ACH, cards, cash, wire transfer are discussed. Students learn the mechanisms of FinTech innovations,
including the Non-Fungible Tokens (NFTs). Students also learn how to set up digital wallets and interact with the blockchain.
Prerequisite: FA 591 and [FE520 Python, or FE515 R, or FE516 Matlab], or instructor permission
| Campus | Fall | Spring | Summer |
|---|---|---|---|
| On Campus | X | X | |
| Online | X | X |
Instructors
| Professor | Office | |
|---|---|---|
|
Jingrui Li
|
jli264@stevens.edu | Kidde 219 C |
More Information
Course Objectives
This course prepares student in familiarizing them with the up-to-date digital payment systems both domestic and cross border. Students learn hands-on skills of using blockchain technology as an innovative form of digital payments. Students also learn the mechanisms of recent FinTech innovations, including Smart Contracts and Non-Fungible Tokens (NFTs). The course also trains students' blockchain coding skills, including interpreting and writing smart contract codes.
Course Outcomes
- Evaluate the common payment systems both domestic and cross border.
- Analyze topics in cryptocurrencies and blockchain technologies.
- Create digital wallets and interact with blockchain.
- Apply the innovations in digital payment systems.
- Assess misconceptions about payment systems and misuses of cryptocurrencies.
Course Resources
Required Materials
- Payments Systems in the U.S. - Third Edition: A Guide for the Payments Professional (2017) by Carol Coye Benson, Scott Loftesness, Russ Jones. ISBN: 0982789742.
- The PAYTECH Book: The Payment Technology Handbook for Investors, Entrepreneurs, and FinTech Visionaries (2020) by Susanne Chishti, Tony Craddock, Robert Courtneidge, Markos Zachariadis. ISBN: 1119551919.
- Lecture slides used during each lecture.
- Academic papers, whitepapers, survey articles, and video materials given to students throughout the class.
Recommended Materials
- Mastering Ethereum: Building Smart Contracts and DApps (2018) by Andreas M. Antonopoulos and Gavin Wood. ISBN: 1491971940.
- Blockchain Bubble or Revolution: The Future of Bitcoin, Blockchains, and Cryptocurrencies (2019) by Neel Mehta, Aditya Agashe and Parth Detroja. ISBN: 0578528150.
- DeFi and the Future of Finance (2021) by Campbell R Harvey, Ashwin Ramachandran and Joey Santoro. ISBN: 1119836018.
- Python for Data Analysis: Data Wrangling with Pandas, NumPy, and IPython (2017) by William McKinney. ISBN: 1491957662.
Grading
Grading Policies
| Weights | |
| Two Exams | 50% (25% each) |
| Group Project and Presentation | 30%(15% and 15%) |
| Homwork | 15% |
| Canvas Discussions | 5% |
| Total | 100% |
Lecture Outline
| Week | Topics | Readings | HW |
|---|---|---|---|
| 1 | Introduction to digital payment systems Time value of money Capital budgeting Risk and return Risk management |
Instructor's Materials | |
| 2 | Valuation basics Discount rates and WACC |
Instructor's Materials | Discussion 1 due |
| 3 | Portfolio theory Portfolio optimization Introductory empirical asset pricing Factor models |
Instructor's Materials | HW1 due |
| 4 | Payment systems overview Core Systems: Checking |
Book [1] - Chapter 2 Book [1] - Chapter 3 |
Discussion 2 due |
| 5 | Core Systems: ACH Core Systems: CARDS |
Book [1] - Chapter 4 Book [1] - Chapter 5 |
|
| 6 | Core Systems: CASH Core Systems: WIRE TRANSFER |
Book [1] - Chapter 6 Book [1] - Chapter 7 |
Homework 2 Due Group Project Member Sheet Due |
| 7 | An overview of P2P payment networks: Apple Cash, Zelle, Google Pay, Cash App, and Venmo Payment Evolutions and PAYTECH Introduction Cryptocurrencies Overview |
Article Readings Book [2] - Chapter 1 and 2 |
Discussion 3 Due Exam 1 Review |
| 8 | Exam 1 | ||
| 9 | Blockchain Overview and Bitcoin Mechanics Scaling Blockchain: Proof-of-Work vs. Proof-of-Stake |
Instructor's Materials and Students Practice in Class | |
| 10 | Ethereum and Smart Contracts Setting Up Digital Wallets and Interacting with Blockchain |
Instructor's Materials and Students Practice in Class | Group Project Member Sheet Due |
| 11 | NFT Creation and Transaction on the Ethereum Blockchain | Instructor's Materials and Students Practice in Class | Homework 3 Due Discussion 4 Due |
| 12 | Thanksgiving Recess | ||
| 13 | Payment Systems Regulations and Compliance Blueprint for Change |
Exam 2 Review Group Project Due Homework 4 Due Discussion 5 Due |
|
| 14 | Exam | ||
| 15 | Group Project Presentations |