Functioning and Development of Retail Banking in Russia

Chernikova, Lyudmila; Faizova, Guzel R.; Егорова, Елена; Kozhevnikova, Natalya

doi:10.5901/mjss.2015.v6n6s4p274

Cited by 8 publications

(10 citation statements)

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“…Cash is perceived as convenient and cheap, therefore, the role of it is still pointed out to be high by the merchants. These results are in line with previous research on Russian retail payments market (Chernikova, Faizova, Egorova, & Kozhevnikova, 2015;Chizhikova, 2013;Krivosheya & Korolev, 2018).…”

Section: Data Sourcessupporting

confidence: 93%

“…Secondly, regional centers status may also influence the probability of merchant's acceptance. The regional centers in Russia have different financing, subsidizing and tourism level, road networks, which are crucial to merchants in the sense of logistics and presented assortment, convenience of payments and quality of bank services (Chernikova et al, 2015;Chizhikova, 2013). Regional center is accounted for using the dummy variable, which takes value of 1 if the city is a regional center and 0 otherwise.…”

Section: Control Variablesmentioning

confidence: 99%

“…On the one hand, merchants are more likely to refute transparency offered by cashless payments (Malphrus, 2009). On the other hand, regional governments may stimulate cashless payments acceptance if tax evasion practices are widespread and region suffers from shadow economy segment (Chernikova et al, 2015;Chizhikova, 2013;Krivosheya et al, 2015). Two control variables were considered.…”

Section: Control Variablesmentioning

confidence: 99%

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Network Effects at Retail Payments Market: Evidence From Russian Merchants

Krivosheya¹

2018

Proceedings of the 10th Economics &Amp; Finance Conference, Rome

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This research examines the role of network externalities in card acceptance by merchants on the retail payments market in Russia. The work empirically tests the effects of both direct and indirect network externalities for the merchants' card acceptance probability based on the representative survey of 800 traditional (offline) merchants from all Russian regions. The main finding of this study is that the probability of cashless payments acceptance by merchants increases with the presence of direct and indirect or both types of network externalities, controlling for a large set of control variables, including merchants' characteristics and location-specific differences between the retailers. The results are robust to the changes in measures of network externalities and inclusion of shadow economy controls. The findings are significant both statistically and economically.

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Section: Data Sourcessupporting

confidence: 93%

Section: Control Variablesmentioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 99%

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Network Effects at Retail Payments Market: Evidence From Russian Merchants

Krivosheya¹

2018

Proceedings of the 10th Economics &Amp; Finance Conference, Rome

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“…Variable fees (f) are the payments charged by the bank per transaction. Whereas usually in theory this payment is non-negative in Russia it is negative since the issuing banks usually offer cardholders some forms of stimulating programs (e.g., bonuses, cashback) for making payments by card (Chernikova, Faizova, Egorova, & Kozhevnikova, 2015;Chizhikova, 2013;Krivosheya & Korolev, 2016). Fixed fees (F) are the payments for card issuance and service, which are independent of the number of transactions (for example, annual service fees) (Baxter, 1983;Bedre-Defolie & Calvano, 2013;Krivosheya & Korolev, 2016).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Network Effects at Retail Payments Market: Evidence From Russian Individuals

Krivosheya¹,

Semerikova²

2018

Proceedings of the 10th Economics &Amp; Finance Conference, Rome

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This research empirically evaluates the effect of network externalities for individuals behavior at Russian retail payments market. Specifically, the effects of direct and indirect network externalities for cardholding and usage probabilities are examined. Using the representative sample of 1500 individuals from all Russian regions this study finds significant robust evidence of positive association between the degree of both types of network externalities and individuals' activity at the Russian retail payments market. Results are economically significant: a standard deviation increase in network effects leads to 2.5-4 percentage points increase in probability of cardholding and usage. Findings imply that one needs to account for network effects which play an important role for the payment behavior before implementing payment stimulating programs in Russia aimed at cardholders or users.

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“…Все это создает «ощущение компетенции», сни-жает психологический порог входа на финансовый рынок для миллионов домо-хозяйств, создает видимую легкость принятия решений и условие для массовых финансовых ошибок. При таком положении дел риски домохозяйств, накапли-ваясь, могут привести и к снижению экономической безопасности государства [1].…”

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