Trust, Ties, and Transactions: The Impact of Social Capital on Card Payments

This study aims to analyze the effect of debit, credit and BI-RTGS card usage on economic growth in Indonesia using secondary data from 34 provinces in Indonesia in the period 2019 to 2023. This study uses the panel data linear regression analysis method with the E-views application to process data. The dependent variable used is Gross Regional Domestic Product (GRDP), while the independent variables include debit card usage, credit card usage and Bank Indonesia Real Time Gross Settlement (BI-RTGS) transactions. The results showed that debit card usage, credit card usage and BI-RTGS significantly affect GRDP in Indonesia. The government needs to continue to support the development of non-cash payment systems as an effort to encourage economic growth.

This paper attempts to investigate the ownership and usability of debit and credit cards in Kosovo focusing on two demographic variables: the gender and age of the bank's clients. For research purposes, the Central Bank of Kosovo (CBK) data are used for two consecutive years: 2015 and 2016. The comparative method is used to compare the clients’ behavior on the choice of the method to conduct payment and the usage of credit and debit cards in Kosovo banks for two consecutive years 2015 and 2016 based on the gender and age of bank clients. The results show that there is a gender gap, as debit and credit cards are owned and used more by males than females in all age groups and payment types. Whereas, for the variable age, the results show that both debit and credit cards are mostly used by customers aged 25-35 years followed by those 18-25 years. Based on the results of the paper, conclusions were drawn and some suggestions were given. We suggest that banks should do more to enhance the ownership and usage of debit and credit cards by females and elderly clients. Regarding the variable gender, we suggest that banks should offer credit and bonus cards with preferential rates to female entrepreneurs considering the very small number of female entrepreneurs to boost female entrepreneurship and decrease female unemployment in Kosovo.

Bank Interchange of Transactional Paper: Legal and Economic Perspectives

We analyze the effects of credit and debit cards on the currency in circulation by using GMM estimation. Instead of using the data obtained by surveys, we use monthly data obtained by an interbank institution that keeps the statistics of all credit and debit cards usage of a small open economy, Turkey, for the period over 2002M1–2006M10. As expected from the theory, we find that an increase in the usage of credit and debit cards leads to a decrease in the currency demand. Moreover, the usage of the debit cards has a bigger effect on the money demand, compared to the usage of the credit cards. We also find that the effect of credit cards is mostly through purchases and the effect of debit cards is mostly through withdrawals

In the recent past, the banking sector in Kenya has witnessed a rapid growth, issuing thousands of credit cards and millions of debit cards to their customers. The frequency in which customers use these cards for various transactions raised concerns of whether customers had lost control over their finances. Previous studies on this area have provided very little understanding on the impact of use of debit and credit cards on customers‟ cash flow management control. This study sought to determine the extent of use of debit and credit cards in cash deposits, withdrawals and purchase transactions at retail outlets and to determine its effects on cardholder‟s cash flow management. Data was collected through a structured questionnaire administered to a sample of 35 debit and credit cardholders each, drawn from customers of 7 main commercial banks in Kisumu city, Kenya. The study revealed that both debit and credit cards usage increases cash outflows compared to cash inflows and that use of these cards has increased consumption levels as opposed to investments. As a premier study in Kenya, this study will greatly help in the understanding of the impact debit and credit cards in developing countries which are yet to advance in technology.Key words: Debit cards, credit cards, commercial banks, Kenya.

Credit card users, debit card users, and other drinkers were compared in terms of demographic characteristics, opinions, financial problems, and alcohol consumption patterns before and after the introduction of credit and debit cards at government-operated liquor stores. Significant opinion shifts were detected, with more favorable opinions about credit cards reported after the regulatory change. Credit card and debit card users drank significantly more alcohol than other drinkers, but no change was found in terms of alcohol consumption patterns. Time series analyses suggested that no significant changes occurred in alcohol sales.

PurposeThis exploratory study seeks to explore the link between the choices of payment mode to customer satisfaction. It examines the Austrian market in relation to its choice and usage of debit cards versus credit cards and its impact on customer satisfaction and loyalty. Furthermore, the study aims to identify the key drivers of customer satisfaction for these two modes of electronic payment.Design/methodology/approachA structured questionnaire was administered in person to 360 Austrian bank customers. These customers were selected using quota sampling based on Austrian census data for a particular Austrian province. However, while the quota sampling was used to determine the categories, selection of the actual respondents was done through systematic sampling. This ensured that the sample was representative of the population of that Austrian province who had credit and debit cards. One group, women who were 65 and older, were not considered as there were relatively few women in this age range who had debit and credit cards.FindingsFive hypotheses were proposed. Four of the five hypotheses were supported while one, H4, had partial support. Essentially, the results indicate that a person's preference for a particular payment method is dependent on his/her personal characteristics. Additionally, the payment method's features and characteristics influenced its desirability and acceptance. Furthermore, a person's expectations had an impact on his/her attitude toward the payment method. The study also found that positive expectations, performance, and desires led to customer satisfaction. Customer satisfaction, in turn, leads to a higher degree of intent to use the payment method and higher degree of intent to recommend the payment method. These results are consistent with the literature on customer satisfaction that identifies expectations, performance and desires as the drivers of customer satisfaction.Originality/valueMultiple payment modes have emerged but there has been scant attention paid to the effects of payment modes on customer behavior and by extension, customer satisfaction and loyalty. This paper addresses these issues.

Method of payment — debit card, credit card or cash — is known to affect consumer spending on various items. The purpose of this study is to scrutinize the relationship between the method of payment and the total trip expenditure of Norwegian winter tourists. There are two main findings: (a) credit card and debit card users — the so-called ‘plastic money’ segments — spend more money in total on their trip than cash users; (b) of the two plastic money segments, credit card users are the bigger spenders. The scholarly and strategic implications are offered.

We consider debit and credit card networks. Our contribution is to introduce the role of consumer credit into these payment networks, and to assess the way this affects competition and equilibrium fees. We analyze a situation in which overdrafts are associated with current accounts and debit cards, and larger credit lines with ‘grace’ periods are associated with credit cards. If we just introduce credit cards, we find their merchant fees depend not only on the networks’ cost of funds and the probability of default, but also on the interest rates of overdrafts. Whilst debit card merchant fees do not depend on funding costs or default risk in a debit-card only world, this changes when they start to compete with credit cards. First, debit merchant acceptance increases with the default probability, even though merchant fees increase. Second, an increase in funding costs causes a surprising increase in debit merchant fees. Effectively, the bank offering the debit card benefits from consumers maintaining a positive current account balance, when they use their credit instead of their debit card. As a result, this complementarity may lead to relatively high debit card merchant fees as the bank discourages debit card acceptance at the margin.

Concept of corporate social capital has gained significant attention of academicians and practitioners from different backgrounds recently. As any other form of capital (i. e. physical or human capital), social capital refers to a specific asset that yields a stream of benefits over the time. Social capital is an essential asset in contemporary business world where timely information, proactive adjustment to the market changes and flexibility are the main competitiveness factors. Social capital enables efficient cooperation, facilitates exchange of knowledge and information, lowers the costs of contracts and has many other positive impacts. But it can also become an obstacle for goal achievement or cause losses because of the improper investment or over investment. As any other asset social capital also needs considerable investments to be created and maintained. If these investments are channeled into the improper form of social capital it will not produce expected benefits but, contrarily, will cause significant costs. Hence, the need for the means for the evaluation of corporate social capital impact that could be applied by academicians as well as practitioners occurs. Recent studies on the corporate social capital impact are concentrated on the particular impact of different types of social capital or particular conditions that determine the nature of the impact. Most scholars concentrate solely on positive or negative side of impact of social capital trying completely to reveal the broad and various nature of impact of social capital or concentrate on the particular aspects of some part of this impact. There is no attempt in scientific literature to integrate the theoretical and methodological findings on evaluation of the impact of corporate social capital in order to develop the instrument for the evaluation of aggregate impact of social capital. Besides, the big variety of the criteria reflecting both positive and negative impact of corporate social capital is applied in scientific literature. Some of it reflects indirect impact of social capital or are overlapping. So, it causes confusion when developing the instrument for the evaluation of corporate social capital impact and shows the need to analyze and systemize it with the aim to compose the thorough but small-scale list of corporate social capital impact on the operation of enterprise evaluation criteria. This article aims to meet the demand for the instrument for the evaluation of the aggregate impact of corporate social capital presenting the model based on the cost-benefit analysis method. Cost-benefit analysis method was chosen developing the model of evaluation of corporate social capital impact on operation of enterprise because of several reasons. First, it allows evaluating and comparing not only quantitative but also hardly measurable more intangible impact. Comparing total positive and negative impact it enables to evaluate the aggregate impact. Second, the quantitative as well as qualitative analysis methods can be applied in the boundaries of cost-benefit analysis that is essential when evaluating social capital impact as one type of analysis methods cannot entirely reveal the impact of this factor. Besides, cost-benefit analysis is not very complicated and can be easily applied by the practicing even without special economic background. These reasons allow seeing cost-benefit analysis as the efficient tool for the evaluation of corporate social capital impact on operation of enterprise.

In this era characterized by rapid advancement in technology and financial innovation, this research seeks to address the cryptic relationships between the credit cards, debt dynamics and the impact of interest on individuals. Against the backdrop of a mellowing financial world, these credit cards have not only become pervasive, but also subject to unceasing innovation, molding the ways in which an individual interacts with and perceives these financial instruments. However the study adopts a framework to help readers understand the intricate workings of modern credit card systems. It delves into the part of financial technology, emerging new payment platforms, and innovative features bedded in credit cards, exploring how these advancements impact individual fiscal actions and decision- making processes, by examining the synergy between innovation, debt accumulation, and the compounding of interest. Card payments come with a number of advantages as well as risks. Debit and credit cards have surpassed cash as the primary means of payment in the world as it moves towards digitization across the board.Thus, it becomes very necessary to understand the perceptions of customers on credit cards, transforming debt dynamics and creating a revolutionizing interest impacting on the society. The study uses exploratory research and data collection relies on secondary sources renowned for their reliability and accuracy such as official reports, through Official financial reports, publications from reputable financial journals, and databases, with a special emphasis on the Reserve Bank of India (RBI) Annual Reports, serve as foundational sources. Statistical information related to credit card issuance, transactions, debt accumulated Gross Non- Performing Assets (GNPA) levels are extracted from these sources. Although The study revealed patterns in credit card usage , with notable changes to digital payment methods. Factors such as credit limits, minimum payments, and consumer spending patterns influenced credit growth. Higher interest rates were identified as a significant contributor to the long-term financial burden, and credit card innovations appeared to be more vulnerable if specific user profiles were found to be affected by user behavior and spending psychology, although their acceptability varied. Finally, the study aims to provide valuable insights into the dynamic and innovative ways that make a distinctive relationship between credit cards and personal debt in this economic upswing. KEY WORDS: Digital Payments, Contactless payments, Debt Dynamics, Fin-tech, Debt accumulations, financial innovation,synergy between innovation

The aim of this study is to develop a composite index for financial inclusion. It is a multi-dimensional index as financial inclusion is based on many different aspects of financial systems. This study is an effort to develop a more appropriate, significant and accurate index using more indicators of financial inclusion. The index is developed using indicators on bank accounts, bank branches, number of ATMs, number of POS terminals, number of credit cards, number of debit cards, borrowings, savings, credit purchases, deposits, withdrawals, credit card usage, debit card usage, internet usage and mobile usage for transactions. This study is carried out with the objective of improving the number of variables and assigning weights for the variables methodologically. Accordingly, the composite index for financial inclusion is developed by using the correlation matrix of the variables to derive the weights and then taking the arithmetic mean of the dimensions. The results of the index developed are compared with the countries’ income classification, literacy rate, Gini coefficient and the OECD country representation. The analysis shows that the index is developed with more relevant indicators or that the variables well represent the countries’ financial inclusion. This index can be used as an indication of the country’s financial inclusion and will give a better representation of the financial inclusion ranking of the country and hence, can be used to measure the development of financial inclusion of a country.

Digital banking is a new concept and it uses different payment systems. The study is conducted to analyze the different payment systems of digital banking. For that purpose, the researchers selected BHIM, NEFT, NCTE, credit cards, and debit cards. The secondary data used for the study is collected from the reports of RBI, journals, and articles. Based on the hypothesis here used a t-test for the analysis and also used tables and charts. The study found that more transactions are carried through NEFT than IMPS. It was also discovered that there is no significant difference in usage of debit cards and credit cards and the usage of BHIM is showing an increasing trend. The study suggested that the applications like BHIM should be developed based on the opinion and convenience of common people, reduce the charge of IMPS and IMPS should provide services both online and offline.

This study investigates on the relationship between demographic factors and the usage of Islamic credit card as well as Conventional credit card demonstrates their interdependencies. The debatable issues as been addressed by many authorities not only in terms of the numbers of credit card flooding the nation’s economy, but the amount of transactions that end up with payment default and the numbers of credit card fraud as been recorded which threatened the economy should be seriously focused. Nevertheless the advances and changing habits in purchasing activities significantly contributed the diffusion of credit card as becoming more important and relevant in maintaining the purchasing activities. The study was conducted involving 305 respondents as a sample of study. While 26 items were used for addressing the research questions. Section A of the questionnaire seeks for information concerning the demographic profile of the respondents whilst section B and C that used Likert scale aimed to investigate information related to income and usage of credit card. The results of the study offer certain important managerial implications for the policy makers, finance institutions and the authorities bodies that take controls the credit card activities.

Debit, credit, or cash: survey evidence on gasoline purchases