The Impact of Electronic Money on the Efficiency of the Payment System and the Substitution of Cash in Indonesia

Igamo, Alghifari Mahdi; Falianty, Telisa Aulia

doi:10.29259/sijdeb.v2i3.237-254

Sriwijaya Int. J. of Dynamic Eco. And Buss.

2018

DOI: 10.29259/sijdeb.v2i3.237-254

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The Impact of Electronic Money on the Efficiency of the Payment System and the Substitution of Cash in Indonesia

Alghifari Mahdi Igamo¹,

Telisa Aulia Falianty²

Abstract: This paper examines the effect of electronic money on the efficiency of the payment system and narrow money demand function from 2007-2017 using Indonesia monthly data. This reseacrh found that electronic money increase private consumption expenditures as a proxy of the efficiency. On the other hand, result showed that electronic money decrease narrow money (M1).Â

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Cited by 5 publications

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Investigating Asymmetric Effects of Electronic Payment on Money Supply for India using Non-linear ARDL Model

Chaudhry,

Chandni,

Dudeja

2023

Millennial Asia

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Money supply in India is analysed using a non-linear autoregressive distributed lag (NARDL) model to see how several factors, such as electronic payments, exchange rate, interest rates and inflation, affect the money supply. The Augmented Dickey–Fuller unit root test and the Phillips–Perron unit root test are utilized to confirm that the variables are stationary. In the bounds test of the NARDL as well as Johansen–Juselius cointegration test, this study finds evidence of cointegration amongst variable used in the study. NARDL testing model is employed to investigate the dissimilar influences on variables with short- and long-run dynamics. Short-term estimates suggest that the money supply ( M1) is most responsive to positive shocks involving retail payments, the exchange rate and interest rates, but negative shocks involving card payment and prepaid payment instruments. A reduction in card payment, as well as a positive increase in retail payment, the prepaid payment instrument, the exchange rate and the interest rate, would all have major effects on M3 in short run. In addition, a long-term finding demonstrates that all of the variables have a significant influence on the money supply ( M1) in its mixed form while all of the factors, with the exception of the one involving card payments, have a considerable impact on the money supply ( M3). Wald test results confirm the existence of asymmetric influences which can have significant lessons for policymakers.

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Investigating Asymmetric Effects of Electronic Payment on Money Supply for India using Non-linear ARDL Model

Chaudhry,

Chandni,

Dudeja

2023

Millennial Asia

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E-money and Stock: Empirical Evidence from Indonesia and Thailand

2021

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E-money is a type of electronic or digital payment that replaces cash payments. These technological developments will have an impact on reducing the use of cash. The use of e-money possibly affects stock, which is a form of securities. Therefore, the purpose of this study is to assess the relationship between e-money and stock. The study uses the two-stage least squares model to analyze quarterly data for 2011Q1-2019Q4. The study found no relationship between stock and e-money in Indonesia, whereas, in Thailand, there was a relationship between stock and e-money. There is no relationship between e-money and stock in Indonesia and Thailand. The study recommends the Indonesian government or central bank adopt the policies that Thailand has implemented in stock that affects e-money. Stocks can affect the use of e-money due to the profits or losses of the stock that will impact the use of e-money.JEL Classification: D53, E40How to Cite:Aimon, H., Sentosa, S. U., & Mahatir, M. R. (2021). E-money and Stock: Empirical Evidence from Indonesia and Thailand. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 139-148. https://doi.org/10.15408/sjie.v10i1.15380.

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Effect of financial access on cashless economy: The case of Ukraine

Bublyk

Shapoval

Shpanel-Yukhta

et al. 2023

Banks and Bank Systems

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The pandemic and wartime in Ukraine confirmed the importance of cashless payments for financial stability. The purpose of the paper is to examine the effect of technological infrastructure and financial access factors on cashless economy development. The impact of the infrastructure factor is assessed in case of Ukraine, using NBU’s data on payment infrastructure during 2001–2022. The hypothesis of the boosting effect of financial access towards a cashless economy has been tested using the method of correlation between M0/M3 and different indicators of financial access (usage of essential technologies, financial services) based on data of World Bank, IMF, and Triple-A in 2021. The study’s results show that globally there is an almost linear relationship between the number of open financial accounts and the increase in the level of cashless (0.954). It is also revealed that the rise of the share of the population making electronic payments decreases the share of cash in the economy. It is determined that the spread of the crypto-assets has a significant impact on the reduction of cash in the economy (an increase in the share of the population operating with cryptocurrencies by 1% reduces the share of cash by 0.5%). Regarding regulatory policies, it is proposed to stimulate the coverage of the population with open financial accounts, making mandatory payments with electronic payment systems and developing their infrastructure.

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The Impact of Electronic Money on the Efficiency of the Payment System and the Substitution of Cash in Indonesia

Cited by 5 publications

References 6 publications

Investigating Asymmetric Effects of Electronic Payment on Money Supply for India using Non-linear ARDL Model

Investigating Asymmetric Effects of Electronic Payment on Money Supply for India using Non-linear ARDL Model

E-money and Stock: Empirical Evidence from Indonesia and Thailand

Effect of financial access on cashless economy: The case of Ukraine

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