Digital Payment Research Articles

Paymob: transforming digital payments in Egypt and the region for a cashless society

Learning outcomes After completion of the case study, the students will be able to analyze the FinTech industry in emerging markets, distinguish the growth strategies for startups in the hyper-growth phase, using the Ansoff matrix, evaluate and select geographical markets for expansion (foreign country selection) and understand the liability of foreignness concept. Case overview/synopsis In 2015, Islam Shawky, Alain Al-Hajj and Mostafa Menessy founded Paymob in Egypt, a FinTech start-up providing technological and financial solutions to consumers and merchants in the country. The company had grown into one of Egypt’s most prominent digital payment providers by deploying infrastructure and technologies that empower the underserved with access to financial services. In 2021, Paymob had gained a lot of support from venture capital investors that ended with closing the largest in Egypt Series A fund of $18.5m led by Dubai-based venture capital firm Global Ventures. Although Paymob had already reached great success in Egypt, the founders’ vision was to become the regional leader of digital payments, focusing on small and medium-sized enterprises. So, they are considering regional markets similar to Egypt’s, such as the Kingdom of Saudi Arabia, a call with a lot of structure but a lot of competition, and Pakistan, a market with much less competition but relatively unstructured. The founders found themselves in early 2022 deciding between these two markets in preparation for the next round of Series B $50m funding. Complexity academic level This case study can be useful for courses in executive education. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.

THE INFLUENCE OF TAM VARIABLES AND FINANCIAL LITERACY ON QRIS PAYMENT DECISIONS WITH INTEREST AS AN INTERVENING VARIABLE (STUDY ON POLITEKNIK NEGERI SEMARANG STUDENTS)

The rapid evolution of digital technology, especially in the digital economy and payment sector, has driven the widespread adoption of digital payment services utilizing QR Codes. The Quick Response Code Indonesian Standard (QRIS), introduced by Bank Indonesia and the Indonesian Payment System Association (ASPI) on August 17, 2019, serves as the national QR code standard, facilitating QR code-based payments across Indonesia. QRIS presently allows the acceptance of payment applications, whether from banks or non-banks, at various establishments. This study, involving 370 students from a population of 6,128, utilizes the Structural Equation Model (SEM) for analysis, demonstrating a robust fit with a GFI value surpassing 0.913. The findings reveal that TAM variables—perceived ease of use, perceived usefulness, perceived enjoyment, and financial literacy—significantly influence the decision of QRIS payment through interest in adopting digital payments as an intervening variable, supported by probability values below 5%

MODEL PERILAKU PENGGUNA APLIKASI QRIS DAN HUBUNGANNYA TERHADAP IMPULSIVE BUYING

This type of research is quantitative research that assesses the QRIS user behavior model and its relationship with Impulsive Buying. Research was conducted on people who use QRIS in carrying out online and offline transactions. This research uses the UTAUT approach. This research also supports IKU 1 Polytechnic LP3I Jakarta, namely the work readiness of graduates because of. In this study there are 4 independent variables (X) and 2 dependent variables (Y), namely, performance expectancy (X1), effort expectancy (X2), social influence (X3), facilitating conditions (X4), behavioral intention (Y1), Impulsive Buying (Y2) Respondents in this study were LP3I Jakarta polytechnic students who belonged to generation Z with a birth year range of 2002-2006 who used QRIS as many as 100 people. For more accurate results, respondents taken were those who had used QRIS >5x. The results of hypothesis testing in this research prove that performance expectancy has a significant positive effect on user behavior intention. This means that performance expectancy influences behavioral intention that the use of QRIS digital payments is very fast and efficient. Hypothesis testing in this research proves that effort expectancy has a significant positive effect on user behavior intention. This means that effort expectancy influences behavior intention so that those using QRIS digital payments can learn and become more skilled in using the new information system

Digital payments, ownership structure, and bank performance: insights from Jordan

PurposeThis paper aims to examine the connection between digital payments, ownership structure, and bank performance in Jordan, as well as investigate the moderating role of the independent director in the said relationship.Design/methodology/approachThe study uses data from 12 Amman stock exchange-listed commercial banks, covering the period from 2010 to 2023. This paper employs econometric analysis of panel data, including ordinary least squares (OLS) regression as the primary approach, as well as the generalised method of moments, the two-stage least square (2SLS), and the dynamic model to deal with causality and endogeneity issues in the proposed equations. This ensures that the results are valid.FindingsThe results indicate that digital payments and ownership structure have a significant positive connection with bank performance. Additionally, the independent director variable appears to play a substantial and positive moderating role in the link between ownership structure (e.g. institutional ownership) and bank performance. These results strengthen and support the claims of agency theory and the information systems success model.Practical implicationsOverall, this research helps stakeholders, bankers, managers, investors, customers, and policymakers, identify the influence of digital payment and ownership structure on bank performance in developing economies such as that of Jordan.Originality/valueThis investigation offers a unique understanding by illuminating how digital payment and ownership structure affect bank performance in a developing country such as Jordan. Additionally, it opens avenues for future research to delve into this literature domain in North African and Middle Eastern nations, with a particular focus on Jordan. This investigation is among the initial explorations in Jordan that aim to elucidate these relationships. On the theoretical level, it adds to the agency theory and IS model. It provides new insights into the dynamics of industry banking in developing nations (i.e. Jordan).

Adoption Dynamics of Digital Payments: An Urban Case Study on E-Money Using the Technology Acceptance Model

The utilization of e-money in Indonesia has surged, propelled by the expansion of digital payment platforms. Despite their growing prevalence, the dynamics of e-money acceptance within urban environments remain underexplored. This study innovatively extends the Technology Acceptance Model (TAM) by incorporating Perceived Security as a new variable, alongside traditional factors such as Perceived Usefulness, Perceived Ease of Use, Attitude Toward Using, Behavioral Intention to Use, and Facilitating Condition. The research focuses on Padang City, a representative urban landscape, where data was collected from 201 valid respondents through online platforms. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The integration of Perceived Security is a novel aspect of this study, reflecting its crucial role in the contemporary urban context of e-money utilization. Results reveal significant relationships among the studied variables, although the impacts of Facilitating Condition on Perceived Ease of Use and Perceived Usefulness on Behavioral Intention to Use were not supported. The findings underscore that positive attitude toward e-money significantly boost behavioral intentions to use it, primarily influenced by security perceptions and ease of use. These insights have substantial implications for policymakers and businesses focused on enhancing e-money adoption in urban settings. The study highlights the necessity of addressing user perceptions, particularly security, to foster broader acceptance. The limited influence of Facilitating Conditions suggests that improvements in infrastructure must be coupled with efforts to enhance user trust and ease of interaction with e-money platforms. This research contributes to the field by providing a deeper understanding of the factors driving e-money acceptance in urban areas, guiding targeted strategies for digital financial inclusion.

Investigating the Behavior of Consumers Using Digital Payment: Comparative Study between Rural and Urban Areas

The primary aim of the present research is to investigate the factors that precede digital payments and their effect on the behavioural intentions of consumers residing in both rural and urban areas. In this research, different factors, such as perceived usefulness (PU), compatibility (CO), performance expectancy (PE), transaction speed (TS), trust (TR), unavailability of facilitating conditions (UFC), and operational constraints (OC) have been taken from various theories. To collect data, an online survey was administered, and a total of 557 participants provided their responses. The model’s validity and reliability are established using confirmatory factor analysis (CFA), while the hypothetical relationships were analysed using structural equation modelling (SEM) in AMOS. It is concluded that PU, CO, PE, TS, TR, UFC, and OC have impacted the behavioural intentions of both urban and rural users. Moreover, the multi-group analysis is also applied in this research, to know the difference in behaviour of rural and urban users. It is concluded that PU, CO, PE, TS, TR, UFC, and OC have impacted the behavioural intentions of the users. Through the multi-group AMOS analysis, it was discovered that the path from drivers such as TS, CO, TR, and UFC to intent to use showed a difference between the two groups, whereas OC, PE, and PU showed the same path coefficient. Finally, at the end, some managerial implications are made for further study.

Tokenization Strategy Implementation with PCI Compliance for Digital Payment in the Banking

Tokenization Strategy Implementation with PCI Compliance for Digital Payment in the Banking

Pengaruh Persepsi Kepercayaan dan Persepsi Keamanan Terhadap Pelaku Usaha Pada Penggunaan QRIS Sebagai Alat Pembayaran Digital Dalam Persepektif Bisnis Syariah

Along with the development of financial technology, QRIS (Quick Response Code Indonesian Standard) has become a digital payment tool that is increasingly popular in Indonesia, including in Bandar Lampung. However, the adoption of QRIS in the context of sharia business faces challenges related to the perception of trust and security from business actors. This research aims to identify the influence of perceived trust and perceived security on business actors' decisions to use QRIS and its implications from a sharia business perspective. The formulation of the problem in this research is (1) How does the perception of trust influence business actors in using QRIS? (2) How does the perception of security affect business actors in using QRIS? (3) How do perceptions of trust and perceptions of security influence business actors' decisions, especially in sharia business?The aim of this research is to find out how perceptions of trust and perceptions of security influence the decisions of business actors, especially in Sharia Business. This research uses quantitative methods with a survey approach to collect data from business actors in Bandar Lampung. Data was collected through questionnaires that measured perceptions of trust, perceptions of security, and the decision to use QRIS. Data analysis was carried out using multiple linear regression to identify the influence of each variable as well as the interaction between perceived trust and perceived security.The research results show that perceived trust has a significant influence on business actors' decisions to use QRIS, with the higher the trust in QRIS, the greater the possibility of using this technology. Perception of security also has a significant influence; Business actors are more likely to adopt QRIS if they believe this system can protect data and transactions well. These two factors together influence business decisions, emphasizing the importance of improving security features and improving communications to increase QRIS adoption. In the context of sharia business, trust and security are very important, and business actors need assurance that QRIS complies with sharia principles and offers adequate data protection. QRIS providers are advised to clarify sharia compliance and security features to increase adoption among sharia business actors.

CREDIT CARD FRAUD DETECTION USING MACHINE LEARNING

The rise of e-commerce and digital payment systems has been accompanied by an increase in financial fraud, especially involving credit cards. Ensuring the detection of fraudulent activities is crucial to protecting users' financial assets and preserving trust in online transactions. This study introduces a novel method for detecting credit card fraud by integrating machine learning (ML) techniques with a genetic algorithm (GA) for feature selection. Feature selection plays a vital role in improving fraud detection models by pinpointing the most relevant features linked to fraudulent transactions. The effectiveness of the proposed method is assessed using a dataset from European cardholders, a widely used benchmark in this research area. In terms of performance, the Isolation Forest Algorithm exhibits slightly higher accuracy compared to the Local Outlier Factor (LOF) Algorithm. Consequently, based on accuracy alone, the Isolation Forest Algorithm is deemed more effective for this specific dataset. Keywords: Credit card fraud detection, Machine learning (ML), E-commerce.

Impact of bank financial technology on the performance of banks in the European Union

This article examines how financial technology determines bank performance in different EU countries. The answer to that question would allow banks to choose their development policy. The paper focuses on the main and most popular bank services that are linked to financial technology. A SWOT analysis of FinTech is also presented to show the benefits and drawbacks of FinTech. FinTech-based services are very diverse and are provided by financial firms and banks alike. This paper looks at the financial technology provided by banks: internet usage (internet banking), number of ATMs, credit transfers in a country, percentage of the population in a country holding a debit or credit card and whether that population has received or made a digital payment. Using the multi-criteria assessment methods of CRITIC and EDAS, the authors analysed and compared the countries of the European Union and the financial technology used in them. As a result of the application of these methods, the EU countries under consideration were ranked in terms of the use of financial technology. Subsequently, three banks from different countries with different levels of the use of financial technology were selected for the study. For these banks, financial ratios of profitability were calculated to characterise their performance. Correlation and pairwise regression analyses between the banks’ profitability ratios and financial technology were used to assess the relationship and influence between these ratios. The main conclusion of the study focuses on the extent to which financial technology influences the performance of banks in the selected countries. It is likely that further research will try to take into account the size of the country’s population when analysing all financial technologies. Researchers also needed to find out what influence financial technologies have on the such financial indicators as operational efficiency (costs), financial stability, and capital adequacy.

Factors Influencing Adoption of Digital Payments: A PLS SEM and ANN Approach

Factors Influencing Adoption of Digital Payments: A PLS SEM and ANN Approach

A Consumer Decision Analysis Using QRIS as a Digital Payment Tool

Digital technology has experienced rapid development in the last few decades. Increasingly developing technology has also entered the realm of finance and payment systems. A digital-based payment system can make it easier for people to meet their diverse needs and live their lives more effectively and efficiently. In the digital payment system, there are non-cash (cash) and cash (cash) payments. Non-cash digital payment methods (cashless) are one type of payment that is popular with the public because they can minimize the spread of viruses through money intermediaries, one of which is the use of the Indonesian Standard Quick Response Code (QRIS). This research aims to analyze consumer decisions to use QRIS as a digital payment tool. The sample in this research was 100 respondents. This research uses quantitative methods with descriptive research type. The sampling technique uses non-probability sampling using purposive sampling technique. The method used in data collection was a questionnaire with a Likert scale and data processing used SPSS 29 software to carry out validity testing of an instrument. Validity tests were carried out on the indicators in the online questionnaire which had been filled in by respondents. Keywords: Consumer Preferences, QRIS, Consumer Behavior

Determinants inhibiting digital payment system adoption: an Indian perspective

Purpose The main purpose of this study is to identify the determinants that inhibit the adoption or usage of digital payment systems (DPSs) in India. Design/methodology/approach This study used a qualitative technique, including in-depth semi-structured interviews. Data analysis was conducted using thematic analysis, incorporating both deductive categorisation and inductive coding to identify factors responsible for the non-adoption or discontinuation of DPS use. Findings The findings are in the form of themes and sub-themes that were generated from the data analysis: digital divide (DD), which includes the digital access divide, digital capability divide and digital innovativeness divide; socio-demographic divide (SD), which includes education, geographical location, gender, age and income; psychological barriers, which include a lack of perceived ease of use, vulnerability to risks, technophobia and a lack of trust; and other barriers, which include a lack of awareness, a cash-dominated society and a lack of interoperability. Research limitations/implications The factors identified in this research can be further validated and tested in future studies using quantitative data. This will enable stakeholders to better comprehend the impacts of these factors on DPS adoption or usage. Practical implications The study’s practical implications are specifically relevant to the Union Territory (UT) administration of Ladakh, as there is a DD and an SD among different sections of the population of the UT of Ladakh. UT administrations must prioritise efforts to eliminate these divides. The implications for banks and DPS providers are that they should conduct financial literacy training about DPSs in remote rural areas and invest in developing user-friendly and simplified DPS user interfaces to improve relationships with DPS users and their long-term retention. Originality/value The findings of this study reveal the three levels of the DD that determine DPS adoption or usage, which have not been discussed together in the literature in the DPS context and that must be addressed to expand DPS adoption, thus providing a more holistic view of the DD in the context of DPS.

UTILIZING DEEP LEARNING AND PERSUASIVE TECHNOLOGY TO INCREASE USER TRUST IN DIGITAL PAYMENTS

The paper examines the foundations of user trust in digital payments, using quantitative analysis of data from 277 participants. The study focuses on the associations between perceived security, convenience, privacy protection, and user trust in digital payments. Our findings suggest that all three attributes, safety, security, and privacy, are powerful positive correlates of trust. Furthermore, past experience with digital payments (PEDP) modifies these relationships, suggesting that the impact of these attributes on trust can have significant implications for engaged user digital payments are greatly enhanced We can use persuasive design principles and advanced deep learning to enhance user trust. The study proposes a hybrid deep learning model combining Convolutional Neural Networks (CNNs) and Long Short-Term Memory networks (LSTMs) for enhanced feature extraction and temporal sequence analysis of user interactions and preferences within digital payment environments. This model is complemented by a hybrid optimization algorithm merging the Zebra Optimization Algorithm (ZOA) and Seagull Optimization Algorithm (SOA), aimed at refining system performance and user engagement through iterative enhancement of persuasive elements. This paper lays the groundwork for further research on other factors affecting the use of trust and cultural diversity in digital payment channels. Combining mind-blowing technologies with sophisticated deep learning techniques, it seeks to develop digital payment systems that not only secure transactions but also provide lasting user trust, satisfaction planning and implementation improvements.

Bibliometric Analysis on Digital Payment Using Lens.org and Vosviewers: A Comparison of Research Between Malaysia and Poland

An unprecedented surge in digital payments has had a profound effect on the economic development of developing nations. This transition has enabled greater financial inclusion through the provision of banking services to populations that were previously marginalised. In addition, it has reduced reliance on physical currency, thereby improving security and transparency. This bibliometric analysis examines the research on digital payments in Malaysia and Poland, providing a comparative perspective on research patterns and contributions in these two countries. Furthermore, this study offers a comprehensive examination of the research environment in Malaysia and Poland, elucidating the distinct approaches, methodology, and areas of emphasis in each nation. These findings provide useful insights for those interested in championing digital payment initiatives, as well as contributing to a more robust and resilient digital payment framework. As digital payment ecosystems mature, their significance in altering the economic landscape of emerging countries is likely to become more evident in facilitating cross-border knowledge exchange and collaboration.

From innovation to stability: Evaluating the ripple influence of digital payment systems and capital adequacy ratio on a bank’s Z-score

This study investigated the influence of digital payment systems on banks’ stability by exploring their effect on the Z-score of the Jordanian banking sector during the period from 2004 until 2022. It specifically focused on liquidity risks generated from e-payment transactions and how sufficient capital adequacy ratios enhance banking sector stability over both short-term and long-term periods by standing against sudden volatilities yielded from large amounts of transactions executed through digital payment systems. To achieve this objective, the study utilizes time series dual regression analyses of vector autoregression and vector error correction models on E-views 12 to cover the time variation influences of digital payment on the banking sector Z-score. The regression results indicate varied effects between the benefits and risks of digital payment systems on a bank’s Z-score that influence the immediate sector’s stability, indicating that while digital payment systems can initially hold liquidity risks, leading to short-term instability; the strategic implementation of robust capital adequacy ratio stands as a protective buffer by fostering long-term banking sector resilience. The results also suggest future predictions and insights for financial sector legislators and regulators emphasizing the need for monitoring strategies that stimulate continuous innovations in the digital payment infrastructure while constantly ensuring the stability and resilience of the banking sector. Thus, prudent liquidity management and the reinforcement of capital buffers are encouraged to pilot the dual challenges and opportunities that appeared at the stages of the digital payment process, ultimately guiding the sector toward continuous growth and sustainability. AcknowledgmentThe author is grateful to the Middle East University, Amman, Jordan for the financial support granted to cover the publication fee of this research.

Analisis Efektivitas Penggunaan E-Wallet dalam Pembayaran Digital Bagi Mahasiswa Program Studi Manajemen Bisnis Syariah UMSU

This research aims to determine the motives, impacts and experiences of FAI UMSU Sharia Business Management students in using E-Wallets for Digital Payments. Based on the results of observations and interviews based on this title, researchers found that there are many factors that influence students to use E-Wallets for digital payments, including: promos, ease of use, service features, security of the e-wallet digital product. Almost all provinces in Indonesia have touched digital e-wallet applications (OVO, Gopay, Link Aja, Flip, DANA, Shopeepay and so on). E-wallet users are increasing rapidly and are widely used by various groups, including students. Although e-wallet service providers offer a variety of products, not all of them are used by students. E-wallet is a digital payment transaction method that includes features such as balance top-ups, bill payments, inter-bank transfers, money withdrawals, and so on. The use of digital e-wallets is still dominated by payments for online transportation transactions, purchases via e-commerce, and food and beverage delivery services. Security is also one of the factors that makes students interested and interested in using E-Wallet. Meanwhile, the existence of a security verification system makes consumers feel protected regarding the security of their personal data information when using E-Wallet. One of them is by launching fingerprint and facial verification features to validate every transaction.

Analisis Pengaruh Persepsi Kebermanfaatan, Persepsi Kemudahan dan Persepsi Risiko Terhadap Minat UMKM untuk Bertransaksi Menggunakan Fintech/Financial Technology Sebagai Layanan Pembayaran Digital: Studi pada UMKM Kabupaten Nganjuk

This research is motivated by technological developments which are accelerating rapidly and penetrating various sectors of life. Technological progress has had many positive impacts, one of which is on the economic sector. Starting from limitations in making payments, an innovation was created that made things easier and faster. The aim of this research is to analyze whether perceived usefulness, perceived convenience and perceived risk partially and simultaneously UMKM influence interest in making transactions using Fintech/Financial Technology as a digital payment service. This research uses a quantitative approach with the causality method. In this research, the population of UMKM taken was operating in the culinary sector who were registered with the Nganjuk Regency Cooperatives and Micro Enterprises Service, totaling 544 UMKM. The sampling technique used a purposive sampling technique using the Slovin formula and the number of samples used in the research was 85 respondents obtained by distributing questionnaires/google forms. The tests carried out in this research used SPSS version 25 with multiple linear regression analysis methods. The conclusion of this research shows that perceived usefulness, perceived convenience and perceived risk partially and simultaneously have a significant influence on UMKM interest in using fintech as a digital payment service.

The role of public-sector-led inclusive instant payment systems for growing the digital payments industry in Africa

Digital payments are the most popular financial service in Africa, having been adopted by half of all adults. Nevertheless, there remain significant barriers to access in Africa’s digital payment sector, stymieing growth. Cost and distance to a branch or agent are chief among them, exacerbated by the fact that many economies in Africa have small financial services markets, with payment sectors dominated by private sector financial service and payment system providers that have invested in proprietary, closed-loop digital payments processing infrastructure. These closed-loop systems can be inefficient and therefore expensive to operate, leaving payment services out of reach for millions of end users. With the goal of calling out fruitful approaches for expanding and maturing Africa’s payments market, this paper highlights lessons from four public or public–private instant payment systems (IPS) initiatives that aimed to build affordable and inclusive digital public infrastructure to enable broader access and therefore growth in Africa’s digital payments sector. Using case studies from Ghana, Malawi, Zambia and the Central African Economic and Monetary Community, this paper highlights lessons from these initiatives, including the need for enabling regulations, the need to craft a compelling business case for incumbent payment service providers, central bank involvement to ensure a focus on inclusive access, and customer-centricity to ensure the IPS can process high-demand payment types through the channels that end users prefer.

Analysis of Perceived Ease of Use and Perceived Enjoyment on Behavior Intention in Digital Payment on Generation Z in Sukabumi City

This research explores the influence of perceived ease of use and perceived enjoyment on behavioral intentions to use digital payments among generation Z in Sukabumi City. With a quantitative approach and explanatory research type, a sample of 100 respondents used a questionnaire as a data collection instrument. Data analysis in this study used multiple linear regression. The research results show that perceived enjoyment has a significant effect on behavior intention, but perceived ease of use does not have a significant effect on behavior intention in generation Z in Sukabumi City