Payments Innovation and the Use of Cash

Evans, David S.; Webster, Karen; Colgan, Gloria Knapp; Murray, Scott R.

doi:10.2139/ssrn.2273216

Cited by 4 publications

(4 citation statements)

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“…Dynamics Cash-at-Risk score (Evans et al, 2013). The MasterCard Cashlessness Readiness score, indexed to a scale of 1-100, does not provide any detail as to the actual indicators used in their calculation, only noting they use factors "found to be correlated to consumer cash usage" (p. 6).…”

Section: And the Market Platformmentioning

confidence: 99%

“…The rise of debit and credit cards, and the concomitant reduction in cash and checks, has often been seen as indicative of the move to a cashless society (see for instance Snellman et al, 2001). Indeed, since the advent of credit cards and electronic funds transfer, some commentators have been predicting not whether cash would disappear, but when (Evans et al, 2013;Wolman, 2013).…”

Section: Relationship To Cashlessnessmentioning

confidence: 99%

“…Previous efforts comprise the MasterCard Cashlessness Readiness Index, focusing on reduction in the amount of cash in an economy (Thomas, et al, 2013) and the Market Platform Dynamics Cash-at-Risk Index (Evans, et al, 2013), both developed by commercial parties. 5 new digital money services.…”

Section: Introductionmentioning

confidence: 99%

“…However, appealing this notion is, empirically it appears that the use of cash is not necessarily decreasing, even within advanced economies. For instance, Evans, Webster, Colgan, and Murray (2013) demonstrate that the overall real spending in cash is increasing due to economic growth, and that the actual extinction of cash is many generations away. Similarly, Freedman (2000) concludes that it is "extremely unlikely that electronic money will replace bank notes … that are offered by central banks in the foreseeable future" (p 211).…”

Section: Introductionmentioning

confidence: 99%

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Adoption readiness in service innovation: the case of digital money

Thomas

Vernet

Gann

2016

Industry and Innovation

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One challenge for firms seeking to develop new services is to understand the conditions likely to affect rates of adoption. Understanding relative degrees of "adoption readiness" provides innovators with information to choose market segments and indicates opportunities to influence adoption environments. This paper considers these issues through the case of digital money, a service innovation some claim to have the potential to provide major economic and social benefits. However, there is little research into the adoption readiness of countries upon which firms can base their new service development decisions. Defined as "currency exchange by electronic means", we conceptualize digital money as a socio-technical system, and propose a Digital Money Readiness Index. This composite index integrates institutional, financial, technological, economic, industrial and social attributes to measure adoption readiness. We identify four stages of readiness and systematically analyze the factors that drive under or over adoption of digital money technologies.Key words: Service innovation, digital money, adoption readiness, composite index, cashlessness 3 INTRODUCTIONPerhaps the most influential service innovations shaping history, money has driven wealth creation and socio-economic development. Innovation in the technologies of money has the potential to provide major economic and social benefits. Dodgson, Gann, Wladawsky-Berger, and George (2012) argue that the reduction of time lost in making transactions, or waiting for receipt or confirmation of payments, will improve productivity by removing the "friction" in transactions.Others have emphasized potential social and economic benefits of mobile payments such as M-PESA in developing nations (Jack & Suri, 2011;Morawczynski, 2014). Digital money innovation also offers the possibility of "dis-intermediating" financial systems through removing the requirements for intermediaries to facilitate transactions (Dodgson et al., 2012). The development and adoption of digital money poses a range of questions for innovation studies and for management scholars (Dodgson, Gann, Wladawsky-Berger, Sultan, & George, 2015).A challenge for firms and governments seeking to develop and regulate new service innovations such as digital money is to understand the conditions of adoption in different markets.However, comparisons of service innovation adoption across markets is difficult, as social, economic, political and cultural factors complicate such comparisons (Cooper, 1998;Rogers, 2003). Research comparing service innovations across markets has generally considered firm level new service development rather than national level adoption (see for instance Thakur & Hale, 2013;Yen, Wang, Wei, Hsu, & Chiu, 2012). Digital money adoption probably represents an extreme polar case (Yin, 1984), as the flow of money influences, and is influenced by, a wide range of social and institutional conditions including economic policy, security, ethics, and morality (Eagleton & Williams, 2011;Simmel, 1990)...

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Section: And the Market Platformmentioning

confidence: 99%

Section: Relationship To Cashlessnessmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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