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on Payment Systems and Financial Technology |
| By: | Walter Engert; Oleksandr Shcherbakov; André Stenzel |
| Abstract: | We simulate the impact of a central bank digital currency (CBDC) on consumer adoption, merchant acceptance and use of different payment methods. Modest frictions that deter consumer adoption of a CBDC inhibit its market penetration. Minor pricing responses by financial institutions and payment service providers further reduce the impact of a CBDC. |
| Keywords: | Bank notes; Digital currencies and fintech; Econometric and statistical methods; Financial services |
| JEL: | C51 D12 E42 L14 L52 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsan:24-27 |
| By: | Barbaglia, Luca (European Commission - JRC); Bellia, Mario (European Commission - JRC); Di Girolamo, Francesca (European Commission - JRC); Rho, Caterina (European Commission - JRC) |
| Abstract: | Digital and crypto currencies are becoming an integral part of financial markets. Nevertheless, regulation of these markets seems still at an early stage and the literature evaluating the impact of policy interventions is scarce. We investigate the reaction of crypto markets in the aftermath of a policy announcement using textual information from news and sentiment analysis. Our findings are threefold. First, there is evidence of peaks in news about crypto-assets in correspondence of the date of new developments in EU legislation, in particular about Central Bank Digital currencies. Second, we find that both returns of cryptocurrencies and general stock market returns are directly proportional to the news sentiment about crypto markets. Third, our event study shows that the introduction of regulation on digital and crypto currencies is perceived as a negative shock by financial markets, especially for digital currencies. |
| Keywords: | cryptocurrencies, digital finance, text mining |
| JEL: | C55 E42 G41 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:jrs:wpaper:202407 |
| By: | Ologunebi, John; Taiwo, Ebenezer; All, Kazeem |
| Abstract: | This research investigates digital consumer behavior in e-commerce through a comparative case study of Amazon and Temu's customer purchase decision-making processes in the UK and USA. As e-commerce continues to revolutionize retail landscapes, understanding the nuances of consumer behavior within digital environments is critical for businesses aiming to optimize marketing strategies and enhance user experiences. This study aims to shed light on how distinct elements such as consumer demographics, perceived value, and user experience influence purchasing decisions on these two platforms. The study utilizes a quantitative approach to gather insights from consumers who actively shop on Amazon and Temu. The survey captures demographic information and purchasing habits, while interviews provide deeper narratives about decision-making motivations and experiences. Key factors being explored include product variety, pricing strategies, brand loyalty, the impact of online reviews, and the role of personalization in the shopping experience. Preliminary findings suggest distinct consumer behavior patterns between the two platforms. Amazon functionalities such as advanced algorithms, extensive product offerings, and established brand trust appear to significantly influence customer loyalty and repeat purchases. Conversely, Temu's focus on low prices, foreign product access, and aggressive promotional strategies resonate particularly with cost-conscious shoppers, especially those in younger demographics keen on exploring new trends. These factors significantly alter how consumers engage with the brands and impact their overall satisfaction and likelihood of future purchases. This research also explores the geographic nuances of consumer behavior, highlighting how cultural differences between the UK and USA shape online shopping preferences and behaviors. The findings indicate that while both markets exhibit a reliance on price competitiveness, UK consumers may prioritize product quality and sustainability over sheer cost, whereas USA consumers display a greater inclination toward convenience and extensive product variety. The outcomes of this study have substantial implications for e-commerce businesses, suggesting tailored marketing strategies that consider the distinctive attributes of each platform and regional consumer preferences. By deepening the understanding of digital consumer behavior, this research contributes to existing literature on e-commerce and provides practical insights for enhancing customer engagement and satisfaction in an increasingly competitive digital marketplace. |
| Keywords: | Digital consumer behavior, Digital marketing strategies, E-commerce trends, Customer Purchase Decision, Digital marketing, Online shopping, Online Buying Behavior, Brand Loyalty, Understanding consumer psychology |
| JEL: | M30 M31 M37 M39 |
| Date: | 2024–12–25 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123096 |
| By: | Joaquín Bernal-Ramírez; Carlos A. Arango-Arango; Luis Eduardo Castellanos-Rodríguez |
| Abstract: | En este documento se analiza la evolución del sistema de pagos en Colombia en los cien años transcurridos desde la creación del Banco de la República. El análisis recorre los desarrollos institucionales y hechos estilizados de las tendencias de largo plazo en la adopción, uso y declive relativo del efectivo y el cheque, los cuales dominaron el panorama de pagos durante prácticamente todo el siglo XX, y explora los factores macroeconómicos que han determinado su demanda. Alrededor de esta última se ilustran hitos relevantes del avance del sistema financiero en estos cien años desde una óptica novedosa y poco explorada en nuestro país y en América Latina, y se contextualiza la emergencia de innovaciones en instrumentos y medios de pago electrónicos en busca de reducir costos transaccionales, en un mercado de gran dinamismo desde finales de los años noventa del siglo pasado y las primeras décadas del siglo XXI. **** This document analyzes the evolution of the payment system in Colombia over the hundred years since the creation of the Banco de la República. The analysis covers institutional developments and stylized facts of long-term trends in the adoption, use, and relative decline of cash and checks, which dominated the payment landscape throughout almost the entire 20th century. It explores the macroeconomic factors that have driven their demand. The document illustrates relevant milestones in the advancement of the financial system over these hundred years from a novel and little-explored perspective in Colombia and in Latin America. It also contextualizes the emergence of innovations in electronic payment instruments and methods, aiming to reduce transactional costs in a highly dynamic market since the late 1990s and the first decades of the 21st century. |
| Keywords: | sistema monetario, sistema de pagos, cheques, efectivo, pagos electrónicos, historia financiera de América Latina, compensación interbancaria, medios de pago, instrumentos de pago, monetary system, payment system, checks, cash, electronic payments, financial history of Latin America, interbank clearing, means of payment, payment instruments |
| JEL: | E40 E41 E42 E44 N26 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1290 |
| By: | Peter Psathas |
| Abstract: | Secured credit cards, whose limit is fully or partially collateralized by a bank deposit, serve as viable options for consumers seeking to build new credit or to repair a damaged credit history. Demonstrated repayment behavior over time can qualify secured cardholders for “graduation” to a standard unsecured credit card. This paper uses anonymized account-level data to examine how secured card borrowers perform after graduation by matching samples of graduates with similar groups of borrowers who open new unsecured cards without having graduated from a secured card program. Using a regression model, we compare the two groups’ credit usage and repayment behavior over time and assess the success of secured card graduates in establishing or rebuilding credit. Overall, we find that many secured card graduates succeed in demonstrating long-term responsible credit usage and are generally not riskier in their credit use than their comparison group. |
| Keywords: | credit cards; secured credit cards; account graduation |
| JEL: | D14 G21 |
| Date: | 2024–11–26 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedpdp:99210 |
| By: | Nußbaum, Chiara; Potthoff, Jennifer |
| Abstract: | Die Creator Economy ist eine rasant wachsende Branche, die laut Prognosen in den nächsten Jahren weiter an Einfluss gewinnen und Umsatzsteigerungen erzielen wird. Mit Werbedeals und Kooperationen generieren vor allem Influencer nicht nur hohe Umsätze, sondern haben Macht über Meinungen und Einfluss auf das Konsumverhalten ihrer Follower. Die Grenze zwischen Marketing und (Meinungs-)Manipulation ist dabei häufig fließend, zumal auch politische Akteure zunehmend auf Social-Media-Plattformen aktiv sind und ähnliche Techniken nutzen, um ihre Macht auszubauen, die öffentliche Meinung zu beeinflussen und Nähe zu ihrem Publikum aufzubauen. In Deutschland ist die AfD dabei besonders erfolgreich, da sie ihre Reichweite auf Social Media im Vergleich zu den etablierten Parteien deutlich ausbauen konnte. Insbesondere auf TikTok erzeugt die AfD viel Engagement, erreicht eine überwiegend junge Zielgruppe und verbreitet ihre politischen Botschaften besonders wirkungsvoll. Das Erfolgskonzept der Influencer lässt sich durch den geschickten Einsatz der neuen Techniken erklären sowie durch den Aufbau von Vertrauen. Außerdem suggerieren die verschiedenen Social-Media-Plattformen Nähe, persönlichen Austausch und direkten Kontakt zu dem Publikum und den Followern. Aus verhaltensökonomischer Sicht wird der Erfolg von Influencern durch Effekte wie die Confirmation Bias, den Ankereffekt und das Konsistenzprinzip verstärkt. Das große Vertrauen, welches vor allem junge Menschen gegenüber Influencern entwickeln, bietet Chancen wie zum Beispiel die Aufklärung über wichtige gesellschaftliche Themen, birgt jedoch Risiken, wenn nicht zwischen Meinung, Werbung und Fakten unterschieden wird: Fehlende Transparenz und Werbekennzeichnung beim Content der Influencer oder hyperbolische Versprechungen zur Wirksamkeit eines Produktes oder von politischen Maßnahmen, können zu übermäßigem und gesundheitsoder umweltschädlichem Konsum führen oder eben die eigene Meinung faktenwidrig radikalisieren. Um die Risiken einzuschränken und Influencer-Marketing ethischer zu gestalten, sind eine Förderung digitaler Bildung durch die Integration von Medienkompetenz in den Schulunterricht und regelmäßige Schulungen von Influencern zu rechtlichen und ethischen Standards erforderlich. Im politischen Kontext sollten vor allem auch andere Parteien die neuen Techniken nutzen, um im Wettbewerb bei der jungen Generation mehr Vertrauen aufbauen zu können. Dabei haben Vorbilder - ob in der realen oder virtuellen Welt - höhere moralische Standards zu erfüllen, weil sie mehr Macht haben. Die Einführung von Verhaltenskodizes und Zertifizierungssystemen sowie Maßnahmen der Plattformanbieter gegen Desinformation und irreführende Werbung können ebenfalls dazu beitragen, die Influencer-Marketing-Welt ethischer zu gestalten. Ob dies auch im politischen Umfeld gelingt, bleibt abzuwarten. |
| Abstract: | The creator economy is a rapidly growing industry that, according to forecasts, will continue to gain influence and increase sales in the coming years. With advertising deals and collaborations, influencers in particular not only generate high sales, but also have power over opinions and influence the consumer behavior of their followers. The line between marketing and (opinion) manipulation is often blurred, especially as political actors are also increasingly active on social media platforms and use similar techniques to expand their power, influence public opinion and build proximity to their audience. In Germany, the AfD has been particularly successful in this regard, as it has been able to significantly expand its reach on social media compared to the established parties. On TikTok in particular, the AfD generates a lot of engagement, reaches a predominantly young target group and spreads its political messages particularly effectively. The success of influencers can be explained by the skillful use of new technologies and the building of trust. In addition, the various social media platforms suggest proximity, personal exchange and direct contact with the audience and followers. From a behavioral economics perspective, the success of influencers is reinforced by effects such as the confirmation bias, the anchor effect and the consistency principle. The high level of trust that young people in particular develop towards influencers offers opportunities, such as education about important social issues, but harbors risks if no distinction is made between opinion, advertising and facts: A lack of transparency and advertising labeling in influencers' content or hyperbolic promises about the effectiveness of a product or political measures can lead to excessive consumption that is harmful to health or the environment, or even radicalize one's own opinion contrary to the facts. In order to limit the risks and make influencer marketing more ethical, digital education needs to be promoted by integrating media skills into school lessons and influencers need to receive regular training on legal and ethical standards. In the political context, other parties in particular should also use the new technologies to build more trust with the younger generation in a competitive environment. Role models - whether in the real or virtual world - have to meet higher moral standards because they have more power. The introduction of codes of conduct and certification systems as well as measures by platform providers against disinformation and misleading advertising can also help to make the influencer marketing world more ethical. Whether this will also succeed in the political environment remains to be seen. |
| JEL: | M31 D83 Z13 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwkrep:307134 |
| By: | Alexander Bruce; Simona Hannon |
| Abstract: | Credit-building products are secured small-dollar products that allow consumers to either establish or improve their credit scores by having lenders report their payment activity to credit bureaus. Examples include secured credit cards or loan products such as credit-builder and passbook loans. |
| Date: | 2024–12–06 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfn:2024-12-06-2 |
| By: | Pamela Cardozo; Andrés Fernández; Jerzy Jiang; Felipe D Rojas |
| Abstract: | Cross-border crypto flows (CBCFs) are not systematically measured and are poorly understood. After defining CBCFs and the channels through which they materialize, we review the various approaches to measure them through two case studies. We also quantify the dynamics and drivers of CBCFs through a push/pull factor SVAR model. We find an increasingly large volume of CBCFs, although considerable heterogeneity remains across estimates. Furthermore, CBCFs are more sensitive to push factors than regular capital flows. Our findings call for accurate and comprehensive measurement and monitoring of CBCFs and the need to rethink capital account restrictions in a more digitalized world. |
| Keywords: | Crypto assets; cross-border flows; capital flows; measurement; push-pull factors; capital account restrictions |
| Date: | 2024–12–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/261 |
| By: | Carl White |
| Abstract: | Cybersecurity and regulation are among the top challenges for community bankers in 2024, according to the latest CSBS Annual Survey of Community Banks. |
| Keywords: | cybersecurity; regulation; community banks |
| Date: | 2024–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:fip:l00001:99185 |
| By: | Kris James Mitchener; Kirsten Wandschneider |
| Abstract: | The Great Depression is the canonical case of a widespread currency war, with more than 70 countries devaluing their currencies relative to gold between 1929 and 1936. What were the currency war’s effects on trade flows? We use newly-compiled, high-frequency bilateral trade data and gravity models that account for when and whether trade partners had devalued to identify the effects of the currency war on global trade. Our empirical estimates show that a country’s trade was reduced by more than 21% following devaluation. This negative and statistically significant decline in trade suggests that the currency war destroyed the trade-enhancing benefits of the global monetary standard, ending regime coordination and increasing trade costs. |
| JEL: | F13 F14 F33 F42 N10 N70 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33313 |
| By: | Walter Engert; Oleksandr Shcherbakov; André Stenzel |
| Abstract: | Nous simulons l’effet d’une monnaie numérique de banque centrale (MNBC) sur l’adoption par les consommateurs, l’acceptation par les commerçants et l’utilisation des différents modes de paiement. De modestes frictions qui découragent l’adoption par les consommateurs de la MNBC entravent sa pénétration du marché. Des ajustements de prix mineurs par les institutions financières et les fournisseurs de services de paiement atténuent encore plus l’effet de la MNBC. |
| Keywords: | Billets de banque; Méthodes économétriques et statistiques; Monnaies numériques et technologies financières; Services financiers |
| JEL: | C51 D12 E42 L14 L52 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsan:24-27fr |
| By: | Michelle W. Bowman |
| Date: | 2024–11–22 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgsq:99182 |
| By: | Devi Kinara; Ahmed Atil (ESC [Rennes] - ESC Rennes School of Business); Anindia Pratiwi Putri |
| Abstract: | This research is purposed to understand how GoPay might help customers in obtaining promoted products. By capturing the increasing usage of e-wallet among Indonesian, this research has objective of understanding customer's usage in terms of convenience, security, and satisfaction. Furthermore, a comprehensive literature review is conducted to build necessary hypotheses. Those hypotheses are tested through survey, which then analyzed using regression analysis in SPSS. The result show strong positive correlation when all three variables are combined. This study contributes to emerging business to involve e-wallet in their selling strategy. As well as helping e-wallet provider to enhance their convenience and security factor, this study is aimed to increase public awareness regarding this matter. |
| Keywords: | E-Wallet, GoPay, Ease of Use, Customer's Satisfaction, Security, Product Promotion |
| Date: | 2024–03–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04847594 |