Payment Instruments Research Articles

Understanding the Dynamics of Cashless Payment System: The Effects of Technology Advancement, Security Concerns, and Competition on Merchant Adoption in Hyderabad, India

This study examined the impact of technology advancement, security concerns, and competition on the adoption of Cashless Payment Systems (CPS) by merchants in Hyderabad City, India using a descriptive research design. A semi-structured questionnaire was administered to business heads, and the data was analyzed using frequency tables, means, correlation, and multiple regression analysis. The study findings revealed that technology advancement, security concerns, and competition significantly influence the process of adoption of CPS. The study recommends that entrepreneurs nationwide recognize CPS, as an opportunity to show case their unique and distinctiveness to capture market share. In light of limited cash availability, digital transactions, classified by the RBI as 'prepaid payment instruments,' are becoming increasingly important, driving more merchants to embrace digital money for better transparency, scalability, accountability and sustainability.

Analysis of the Use of E-Money, Money Supply, and Gross Domestic Product on Interest Rate

This research aims to examine the effect of a direct relationship between the use of e-money and the circulation of money on interest rates, as well as an indirect effect, namely through the intervening variable gross domestic product. This research method uses a statistical model of path analysis. The sample used was secondary data fetched from the Website of Bank Indonesia (BI) and the Central Bureau of Statistics (BPS), since regulation on electronic payment method was officially issued by Bank Indonesia in May 2009-March 2023. The test results shows that e-money and money supply each, have a significant positive effect on gross domestic product variables. Gross domestic product variables had a negative effect on interest rates. E-money and money supply variables has a negative effect on interest rates, both directly or indirectly through the intervening variable of gross domestic product. Increasing e-money user and money supply, preponderant to gross domestic product, can decrease the interest rate. The results of this research are expected to provide benefits as a prediction of the Indonesian economy in the future, as a result of the issuance of electronic payment instruments. So for the regulators, they can set the right interest rate policy to be able to maintain stable economic conditions. Keywords: electronic money, money supply, gross domestic bruto, interest rate

Comparative Analysis of Digital Wallet Usage of Millennials and Generation Z

Today, the development of the digital world is so rapid, that humans have found many new tools and innovations to make daily activities easier. One of them is in buying and selling transactions. When you want to make a payment, you have a digital wallet, commonly called an electronic wallet (e-wallet). This research aims to analyze comparative analysis of digital wallet usage of millennials and generation Z. This type of research uses descriptive. Data collection in this study uses secondary data. Data analysis in this study uses comparative analysis. Research results show that digital wallet usage is an electronic service used to store payment instrument data. The instrument can be a payment card or electronic money, which allows users to make payment transactions. The advantage of using a digital wallet is convenience with digital wallet usage, someone can make transactions easier anywhere and anytime. Digital wallet usage means there is no need to leave the house to make payments, such as buying food, paying bills, to making investments, all of which can be done using a digital wallet. Comparative analysis shows that there are differences between millennials and generation Z regarding the use of digital wallets.

Can cash and mobile pay co-exist? What the data tell us

As US consumers increasingly turn to multiple financial institutions, multiple FinTech providers and multiple payment apps, getting a full picture of the consumer’s wallet is rare. Drawing on data collected through the Survey and Diary of Consumer Payment Choice — a representative survey of US consumers conducted since 2008 — this paper provides insights into US consumers’ adoption of bank accounts and payment instruments, their recent use of payment instruments, their payment choices for purchases and bills, and the evolution in their practices over the last decade of innovation in payments.

Juridical Analysis Of The Role Of Investigators In The Perspective Of Combating Criminal Acts Of Fraud Through Check Securities

Fraud through cheque securities is a form of economic crime that harms many parties, both individuals and financial institutions. The background of this problem is the increasing number of fraud cases involving blank checks in Batam City, which causes significant financial losses and reduces public confidence in these payment instruments. This study aims to analyze the role of investigators in eradicating fraud through cheque securities, with a focus on the Barelang Police Criminal Investigation unit. This study uses a normative juridical method with a case study approach, involving analysis of primary and secondary data in the form of interviews with investigators, literature reviews, and document studies related to check fraud cases in the jurisdiction of the Barelang Police. The results of the study show that investigators have a crucial role in handling fraud cases through cheque securities, starting from receiving reports and complaints, collecting and securing evidence, to preparing case files for prosecution. However, there are several obstacles that reduce the effectiveness of investigations, such as lack of resources, lack of specialization in financial crimes, and limited access to information. To overcome these obstacles, this study provides several recommendations, including increasing the capacity and expertise of investigators through ongoing training, increasing budgets and technological resources, and strengthening cooperation between investigators and other financial institutions and law enforcement. The suggestions put forward in this study are that police investigators should improve internal and external coordination to speed up the investigation process, other law enforcers such as prosecutors and judges should increase collaboration with investigators to ensure a fair and transparent judicial process, and the public, especially victims of cheque fraud, should be educated on the steps to be taken when becoming victims of fraud. With the implementation of this recommendation, it is hoped that the handling of fraud cases through check securities can be more effective and public trust in the justice system can increase.

Protection of Electronic Money Saving Customers At the Bank

Currently developing again with the emergence of a new payment instrument in the form of a certain amount of money stored in an electronic media owned by someone, this payment instrument is known as Electronic Money. As a means of payment, the acquisition and use of Electronic Money (e-money) can be considered quite easy. Prospective holders or users only need to deposit a certain amount of money to the issuer or through issuing agents and the total value of the money will be digitally stored in electronic media. The problems raised in this paper are regarding the characteristics and status of electronic money as a non-cash payment instrument in banking products and the urgency of legal protection against stored customer electronic money. This type of thesis research uses normative juridical research. The results of this study are that electronic money is essentially cash that is converted into electronic data that is stored on storage media on cards in the form of chips or servers belonging to electronic money holders. The value of the electronic money is also recorded on electronic media managed by the issuer of electronic money. Payment transactions with electronic money are carried out by transferring funds electronically at merchant payment terminals (merchant), by directly reducing the value of electronic money on electronic media managed by electronic money holders. The status of the value of money received by the electronic money issuer, both for the results of the electronic money issuance and refilling, is a float fund, which is the obligation of the electronic money issuer to electronic money holders and traders at the time of billing reconciliation by the merchant to the electronic money issuer and the urgency of guaranteeing funds Customers using electronic money by customer fund guarantee institutions (LPS) have not yet reached the point where they really need them. Because currently existing regulations regarding electronic money, both those regulated by Bank Indonesia Regulations and Financial Services Authority Regulations are still able to protect the rights of customers who use electronic money, but it is possible that in the future IDIC will guarantee the funds of electronic money customers. Considering the very rapid development of electronic money users and the very large circulation of money, then of course LPS can be present as a guarantee institution, of course with updated regulations. And at this time LPS is also reviewing with OJK about the need for LPS to be present as a guarantor of electronic money customer funds.

Simulating the Adoption of a Retail CBDC

Abstract We use agent-based modelling to build a digital twin of the retail payment system, where heterogeneous consumers and merchants interact, learn, and adapt as they meet and use different monies and payment instruments. As we introduce an rCBDC, the model simulates its adoption. We calibrate this digital twin to Spain’s retail payment ecosystem. We run hypothetical scenarios that correspond to public discussions about the digital euro. Results show that introducing an rCBDC without attractive design options and stimulus results in low and slow adoption. Results suggest that the reverse waterfall functionality, a positive remuneration spread, and the distribution of government subsidies via rCBDC are effective in fostering adoption; yet, the distribution of government subsidies via rCBDC is the only one that creates incentives to reduce the use of cash. Balance limits and top-up limits are effective in restraining adoption. Results also suggest that combining design options and stimulus with limits to holding rCBDCs could aid in achieving a sweet spot of adoption.

BLANK DRAFTS TO SECURE OBLIGATIONS WITHOUT FINANCIAL RISK

Blank drafts have become an increasingly popular payment instrument used by banks and creditors to reduce financial risk. Bank drafts have a specific legal status, containing inconsistencies between a partial filling-in and their transformation into securities. The study aims to analyze blank drafts as an instrument in modern business transactions, their strengths and weaknesses, legal aspects, and related risks. Blank drafts are a flexible instrument used in multiple business transactions. Issuing an incomplete security paper allows the parties to agree on the terms and conditions of the transaction and then complete the necessary information, dramatically speeding up the processes. On the other hand, blank drafts impose a risk and may lead to harmful consequences.

Analisis Perbandingan Pembayaran Tunai dan QRIS Dalam Melakukan Transaksi Dikalangan Mahasiswa Serang Banten

Before the development of science and technology, the payment system in Indonesia was only done using cash. Money is used to make daily human payments as a medium of exchange. Cash payment instruments are regulated in Law Number 7 of 2011 concerning Currency. But along with the development of science and technology, payment instruments have been more widely used. This progress comes in the form of digital payment instruments. QRIS is one of the digital payments available today. QRIS stands for Indonesian Quick Response Code Standard launched by Bank Indonesia. When making payments through QRIS as a means of payment, you can use one e-wallet to pay merchants, such as Link Aja, Gopay, OVO, DANA, Shopeepay, and others. This research was conducted to compare payment systems (cash and QRIS payments) made by Banten students in making transactions. This research was conducted using quantitative methodology. The distribution data was collected through the distribution of questionnaires.

Features of electronic money and financial technology development

The development of financial technologies at the present stage leads to the spread and active use of electronic money in national payment systems, which provide a convenient and secure way to carry out fast financial transactions without the need to use cash. Due to this main advantage, the use of electronic money has become widespread in a short period. Digital payment instruments provide users with the flexibility and access to make transactions anytime and anywhere, but at the same time, the development of electronic money circulation is also associated with some problems and the need to improve their regulation. The era of new payment technologies has presented us with new challenges related to various transactions between entities. The development of trade, including via the Internet, has led to the search for new, fast and effective means of payment, in particular when it comes to paying for goods and services. Nowadays, more and more people are abandoning the use of cash in favor of electronic money, which leads to the popularity of the concept of electronic money. The purpose of the article is to determine the impact and features of new technologies, such as blockchain, digital wallet and cryptocurrency, on the functioning of electronic money in the national payment system. The subject of the study is electronic money and payment technologies used in the national payment system, forming a system of electronic economic relations.

Legal regulation of the monetary system of the Russian Federation in the digital economy: financial and legal problems

The article discusses current problems of digitalization of the monetary system of the Russian Federation. A conclusion is made about the place and content of the sub-growth of the rights of the monetary system in the structure of financial law. It is argued that digitalization does not change the essence of financial relations, the essence of money as a financial and legal category, it only gives them an electronic form. The author’s assessments of the legal nature and qualifying features of new financial payment instruments that are a response to the challenges of the digital economy are given: electronic money, digital currencies, digital ruble. It is argued that they are subtypes of non-cash money circulation along with classic bank money. Proposals for improving the current legislation on the national payment system are substantiated in terms of systemic legal regulation of all types of digital forms of monetary circulation.

Trends towards Improving Criminal Liability Measures in the Field of Illegal Circulation of Payment Instruments

The disposition of Art. 187 of the Criminal Code of the Russian Federation, a substantive analysis of its provisions was carried out from the point of view of certainty, the regulations provided for in it, as well as the consistency of the provisions formulated in the criminal law norm with the doctrine of criminal law protection of the legal circulation of means of payment. The work reflects the results of forensic investigative practice, indicating that the high degree of blanketness inherent in Art. 187 of the Criminal Code of the Russian Federation, can be considered as one of the circumstances influencing the insufficient certainty of the disposition of the article. The author confirms his position on the importance and relevance of precise and complete legal regulation of the field of information security for the information economy of the Russian state using the example of the provisions of the most important strategic documents. At the same time, the scope of application of Art. remains controversial to this day. 187 of the Criminal Code of the Russian Federation, the possibility of qualifying it in combination with other compounds, as well as the legal certainty of the disposition of the norm.

India's Digital Revolution: UPI, Payment Leaders, Future Insights Top of Form

In a county of snake to INDIA is on the moon. INDIA ’s massive growth has shocked the world. This research is based on the in-depth study of one of the greatest achievements of INDIA in digital payment through UPI (unified payment interface). The INDIA online payment sector is undergoing for reaching range is digital payment capturing a sizeable slice of take in recent year. The Reserve Bank of INDIA and its nodal agencies like NPCI are working hard to make digital payment INDIA goal reality nearly one billion card and more than 2 billion prepaid payment instrument such as online wallets mobile application, e wallet and digital modalities have pushed INDIA into one of world fastest growing and largest digital payment ecosystem. In fact, an exponential increase in Internet infrastructure boosted e commerce. unified payment interface popularly known as UPI is regarded as revolutionary payment solution in the market for facilitating retail digital payment. To achieve paperless and cashless economy UPI is potentially innovative way of transferring fund using a virtual payment address established by a national payment corporation of INDIA. Hence, it is needed to be assessed for its potential to contribute towards a shipment of digital economy. Keywords: UPI, DIGITAL, GROWTH, TECHNOLOGY, INFRASTRUCTURE, FUTURE, ECOSYSTEM.

Pengaruh Literasi Keuangan, Pendapatan dan Technology Acceptance Model (Tam) Terhadap Minat Penggunaan Quick Response Indonesian Standar (QRIS) pada Pelaku UMKM di Kecamatan Temanggung

QRIS is a payment instrument officially issued by Bank Indonesia to be used in daily payment transaction activities by the public. MSMEs are an important sector in the use of QRIS as a transaction tool. However, MSMEs in Temanggung District have not fully used QRIS as part of their payment transaction activities. There are many factors that cause these problems to occur including financial literacy, income, and the basic concepts of the Technology Acceptance Model (TAM), namely perceptions of usefulness and perceptions of ease in applying interest in using QRIS. This study aims to analyze the effect of variables related to these problems, namely financial literacy, income, perceived usefulness, and perceived ease of use on interest in using QRIS for SMEs in Temanggung District. This research uses multiple regression analysis methods in empirical testing. The data used are primary data obtained from distributing questionnaires using a Likert scale, with the subject of active MSMEs in Temanggung District. This study uses the SPSS 26.0 application as an analytical tool. From the results of the analysis carried out, this study shows that the financial literacy variable has a significant influence on the interest in using QRIS. The income variable has no significant effect on interest in use. Variables of perceived usefulness and perceived ease of use also have no significant effect. The variables of financial literacy, income, perceived usefulness, and perceived ease of use simultaneously have a positive and significant effect. Of these variables, financial literacy has the greatest influence on interest in using QRIS. Therefore, the government needs to pay attention to and strengthen policies, especially in the field of financial literacy as the main factor in increasing the interest of MSMEs and the public in using QRIS as a means of payment transactions.

TRENDOVI I ODREDNICE UPORABE GOTOVINE U DRŽAVAMA ČLANICAMA EU IZVAN EUROZONE

Technological progress and digital innovations changes consumer payment habits worldwide. Although cash payments are still predominant payment method in European countries, a decreasing trend is observed. Simplicity and accessibility of non-cash ways of payments, along with decreasing availability and restrictions on the use of cash, threaten to push cash from circulation. On the other hand, European Central Bank expressed the importance of cash as a store of value and reliable payment instrument that should be available to all eurozone citizens. The aim of this paper is to analyse the trends and determinants of cash usage in 8 non-euro zone European union countries over the 2013 – 2021 period, based on set of selected indicators. The result show heterogeneity within the group, but with a common downward trend, and the significant influence of technological and sociocultural indicators on cash usage.

Digital payments and bank competition

This article examines how competition between banks and a digital PSP impacts the lending rate and the consumers’ use of payment instruments. The digital PSP offers a digital wallet and payment services, but does not offer credit. In contrast, banks invest their deposits in lending activities, which implies that they may incur some costs of adjusting their liquidity needs when consumers make payments. I show that the adoption of the digital wallet for payments may sometimes increase the volume of payments by bank deposit transfers and the lending rate. This results from banks’ trade-off between lowering their costs of liquidity when consumers pay from their digital wallet and reducing the revenues they receive from bank transfer fees.

Fraud Detection in Financial Transactions Using Credit Card: A Machine Learning Model

Fraud in any financial transactions causes severe loss to both customer as well as the seller. The loss is not confined to financial loss only but it also causes severe dent to the confidence of the customer especially related to shopping platform and the payment instrument used. Nowadays a substantial part of buying and selling of goods and services are taking place using various e commerce platforms. Many customer use credit card as payment instrument. During the payment process, users do exposes the credit card credentials to the payment platform. These payment platforms are vulnerable to fishing and hacking attackers and the payment instrument remains highly susceptible to fraudulent activities. There are two approaches to dealing with this problem. The first step is to identify the fraudulent activities and second step is to prevent any such attempt of fraud. This paper proposes a model based on machine learning algorithms to identify fraudulent attempts by analyzing credit card transactions data set and proposes methods of preventing such fraud activities. The paper also presents the accuracy of this AI model in identifying and preventing fraudulent and mischievous activities.

Food stamps: systematisation of Russian practice

The paper presents an analysis of food stamp programmes in Russia. These programmes are funding the purchase of food in the form of directed payments or auxiliary payment instruments. However, there is no unified concept of food stamps. Indeed, the separate regional programs are launched. They controlled both by the State and non-profit associations. Additionally, there are various practices in Russia using similar tools to ensure national food security. The paper attempts to formulate mandatory criteria for food stamps. It also presents a classification for assessment of food stamp programmes structure. Hence the work assesses the organisational changes in terms of digitalisation of food stamp programmes. Nowadays, the Russian Federation is in the process of accumulating experience in the use of food stamps. The independent programs are being launched and assessed in various regions, the regulatory framework for the launch of larger-scale projects are being developed, etc. The most significant change increasing the efficiency of using food stamps is the digitalisation of the process. Modern food stamps have undergone a profound organisational transformation through the use of digital tools. Their use is more convenient for all stakeholders and makes it possible to effectively provide food support to the indigent people. Hence introducing of food stamp programme in the Russian Federation will improve public access to food and contribute to an increase in living standards. Moreover, the programme expands the demand for food products, increases the economic stability of producers, and forms conditions for import substitution programmes for food production.

Central Bank Digital Currency (CBDC): An Innovation in E-Payment for Socio-Entrepreneurship

The quantity of electronic currency in circulation within the community experienced a substantial increase between 2017 and 2022. However, the quantity of electronic currency in circulation in 2021 has declined compared to 2020 and 2022. Furthermore, the emergence of central bank digital currency (CBDC) as a digital currency has problems that cannot be avoided; these problems arise from policies or regulations and understanding of the public and business people and are related to the security of digital currency users. The Bank of Indonesia deems it imperative to address this by implementing suitable policies. The policy encompasses digital payments and financial services, including Central Bank Digital Currency (CBDC). Central banks worldwide are encouraged to develop Central Bank Digital Currency (CBDC) to enhance monetary policy effectiveness. The objective is to guarantee financial stability and enhance the effectiveness and resilience of the payment system. This study aims to examine the concept of Central Bank Digital Currency (CBDC) as a novel electronic payment tool for social entrepreneurs. The research approach employed in this study was descriptive qualitative with data forecasting. The findings of this study indicate that Central Bank Digital Currency (CBDC) has the potential to be utilized as a payment instrument by social entrepreneurs.

Efisiensi dan Efektivitas Penggunaan Uang Elektronika (E-Money) dalam Inovasi Pengembangan Bisnis

E-Money, or electronic money, has become a significant electronic payment instrument in the digital era, changing the way financial transactions are conducted and influencing business and the global economy. This study explores the impact of using E-Money in business development and the digital economy. His background includes the important role of E-Money in the financial transaction revolution and its impact on global markets. The research objective is to evaluate the efficiency and effectiveness of using E-Money in business innovation, as well as analyzing its impact on the digital economy. Research methods involve analysis of technology, regulations, and business impacts. The research results show that the use of E-Money provides innovative solutions for digital transactions, increases operational efficiency and reduces transaction costs. However, challenges also arise regarding security, data privacy and accessibility. In conclusion, E-Money has great potential to transform business operations and the global economy, with significant impacts on innovation, operations and policy. The integration of E-Money in business strategy can increase overall innovation and efficiency, although it is necessary to pay attention to the challenges that arise along with its use.