nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2016‒10‒16
fourteen papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. The 2014 survey of consumer payment choice: summary results By Greene, Claire; Schuh, Scott; Stavins, Joanna
  2. Does Mobile Money Affect Saving Behavior? Evidence from a Developing Country By Serge Ky; Clovis Rugemintwari; Alain Sauviat
  3. Mobile Messaging for Offline Social Interactions: A Large Field Expeiment By Ginger Zhe Jin; Guodong Gao; Tianshu Sun
  4. IT Governance in the Digital Era By Daria Arkhipova; Giovanni Vaia; William DeLone; Carolina Braghin
  5. The rise of the "just-in-time workforce" : on-demand work, crowdwork and labour protection in the "gig-economy" By De Stefano, Valerio.
  6. Is it all about money? Field experiment with the defaulted in a debt-collector enterprise By Andris Saulitis
  7. Distributed Ledger Technology: Implications for Payments, Clearing, and Settlement : a speech at the Institute of International Finance Annual Meeting Panel on Blockchain, Washington, D.C., October 7, 2016. By Brainard, Lael
  9. Internet and the elderly in Spain: Time dedicated to search and communications By Molina, Jose Alberto; Campaña, Juan Carlos; Ortega, Raquel
  10. Does state aid for broadband deployment in rural areas close the digital and economic divide? By Briglauer, Wolfgang; Dürr, Niklas S.; Falck, Oliver; Hüschelrath, Kai
  11. Monetization Strategies for Internet Companies By Voigt, Sebastian
  12. The use of IT systems in the distribution of courier services and customer service By Tomasz Szczepanik; Katarzyna Sukiennik; Katarzyna Grondys; Marta Kadłubek
  13. The Cross-Section of Crypto-Currencies as Financial Assets: An Overview By Hermann Elendner; Simon Trimborn; Bobby Ong; Teik Ming Lee
  14. Le Bitcoin : évaluation d’une innovation monétaire By Louis Larue

  1. By: Greene, Claire (Federal Reserve Bank of Boston); Schuh, Scott (Federal Reserve Bank of Boston); Stavins, Joanna (Federal Reserve Bank of Boston)
    Abstract: In 2014, the average number of U.S. consumer payments per consumer per month decreased to 66.1, in a statistically insignificant decline from 67.9 in 2013. The number of payments made by paper check continued to decline, falling by 0.7 to 5.0 checks per month, while the number of electronic payments (online banking bill payments, bank account number payments, and deductions from income) increased by 0.6 to 6.9 of these payments per month. The monthly shares of debit cards (31.1 percent), cash (25.6 percent), and credit cards (23.3 percent) continued to be largest; while the share of electronic payments rose a significant 1.2 percentage points to 10.5 percent. Consumers’ average cash holdings dropped by about 10 percent to $207 in 2014. The number of cash withdrawals made by consumers per month also declined by about one withdrawal per month to 5.6. There was no significant change in cash use, however. About half of 1 percent of U.S. consumers held bitcoin or other virtual currencies. The 2014 SCPC includes a formal measure of “underbanked” consumers for the first time.
    Keywords: cash; checks; checking accounts; debit cards; credit cards; prepaid cards; electronic payments; payment preferences; unbanked; Survey of Consumer Payment Choice
    JEL: D12 D14 E42
    Date: 2016–08–15
  2. By: Serge Ky (LAPE - Laboratoire d'Analyse et de Prospective Economique - UNILIM - Université de Limoges - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société); Clovis Rugemintwari (LAPE - Laboratoire d'Analyse et de Prospective Economique - UNILIM - Université de Limoges - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société); Alain Sauviat (LAPE - Laboratoire d'Analyse et de Prospective Economique - UNILIM - Université de Limoges - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société)
    Abstract: We investigate whether the use of mobile money can help individuals build savings to face predictable and unpredictable life events. Studying the case of Burkina Faso, we use hand-collected data from individual responses to a survey we designed and conducted between May and June 2014. Our main results show that, although using mobile money services has no impact on saving for predictable events, it increases the propensity of individuals to save for health emergencies. We also find evidence that using mobile money increases the propensity of disadvantaged groups such as rural, female, less educated individuals and individuals with irregular income to save for health emergencies. In our further investigations, we address the mechanisms underlying individual saving behavior. We find that safety and the possibility to transfer money within the sub-region associated with mobile money may be factors that increase the propensity of mobile money users to save for health emergencies. Overall, our results are in line with policymakers' agenda worldwide to increase financial outreach and improve financial inclusion by using mobile technologies.
    Keywords: mobile money,savings,financial inclusion,sub-Saharan Africa,Burkina Faso
    Date: 2016–09–05
  3. By: Ginger Zhe Jin; Guodong Gao; Tianshu Sun
    Abstract: While much research has examined the role of technology in moderating online user connections, how IT motivates offline interactions among users is much less understood. Using a randomized field experiment involving 80,000 participants, we study how mobile messaging can leverage recipients' social ties to encourage blood donation. There are three main findings: first, both behavior intervention (in the form of reminder message) and economic reward (in the form of individual or group reward) increase donations, but only the messages with group reward are effective in motivating more donors to donate with their friend(s); second, group reward tends to attract different types of donors, especially those who are traditionally less active in online social setting; and third, across all treatments, message recipients donate a greater amount of blood if their friends are present. Structural estimation further suggests that rewarding group donors is four times more cost-effective than rewarding individual donors. Based on the structural estimates, we perform policy simulations on the optimal design of mobile messaging. The method of combining structural model and randomized field experiment opens new frontiers for research on leveraging IT to mobilize a user's social network for social good.
    Date: 2015
  4. By: Daria Arkhipova (Dept. of Management, Università Ca' Foscari Venice); Giovanni Vaia (Dept. of Management, Università Ca' Foscari Venice); William DeLone (Kogod School of Business, American University); Carolina Braghin (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: As companies progressively rely on mobile, social media, cloud and big data in their business, the very nature of IT function within an organisation changes from providing reliable and cost-effective IT support to actively searching new ways to leverage technology and create customer value. For scholars and practitioners alike, the question then arises as to which extent the well-established IT governance models still apply in the new digital context and, if they no longer do, what new models can be proposed to account for the changing demands placed on IT. Through an explorative case study, this paper provides insights on emerging IT governance models within a digital enterprise. Our findings seem to suggest that the role of IT has expanded beyond a robust infrastructure provider to the one a strategy and technology partner. In order to harness the full power of IT in this capacity, companies need to make their IT department more business-aware, incentivize lateral communication and cross-functional learning, and promote integration of previously disconnected functional units.
    Keywords: Governance, Digital transformation, Governance structures, Governance mechanisms
    JEL: M40
    Date: 2016–10
  5. By: De Stefano, Valerio.
    Abstract: The so-called “gig-economy” has been growing exponentially in numbers and importance in recent years but its impact on labour rights has been largely overlooked. Forms of work in the “gig-economy” include “crowdwork”, and “work- on-demand via apps”, under which the demand and supply of working activities is matched online or via mobile apps. These forms of work can provide a good match of job opportunities and allow flexible working schedules. However, they can also pave the way to a severe commodification of work. This paper discusses the implications of this commodification and advocates the full recognition of activities in the gig-economy as “work”.
    Keywords: precarious employment, part time employment, temporary employment, casual worker, labour market, job insecurity, workers rights, social media, role of ILO, emploi précaire, emploi à temps partiel, emploi temporaire, travailleur occasionnel, marché du travail, insécurité de l'emploi, droits des travailleurs, médias sociaux, rôle de l'OIT, empleo precario, empleo a tiempo parcial, empleo temporal, trabajador ocasional, mercado de trabajo, inseguridad laboral, derechos de los trabajadores, medios sociales, papel de la OIT
    Date: 2016
  6. By: Andris Saulitis
    Abstract: This paper examines the extent to which a noncompliant debtor can be induced to pay back the debt by sending a randomly assigned message via mobile phone and e-mail, ranging from a simple reminder to personalized messages and a social norm. In cooperation with a debt-collector enterprise in Latvia, the field experiment was carried out on 24,781 unique cases of consumer debts with unpaid liabilities, ranging from one to 40,060.26 euros. Overall, sending a message to a debtor increases compliance in comparison of not sending a message at all. However, messages, which include debtor's name, agent's name or social norm, do not increase compliance in comparison to a simple reminder message. I also looked at the interaction effect between the content of the message and the debt amount, which has been hardly examined in previous experiments on compliance. Messages with a debtor's name significantly increase compliance in comparison to a simple reminder among the debts smaller than 170 euros. However, such a message is counter-effective for debts larger than 1,340 euros, the same trend is true for a message with the social norm. Hence, a different policy needs to be applied to the debtors who are extensively overindebted in comparison to those with comparatively small debt amounts.
    Date: 2016
  7. By: Brainard, Lael (Board of Governors of the Federal Reserve System (U.S.))
    Date: 2016–10–07
  8. By: Wioleta Kucharska (Gdansk University of Technology, Gdansk, Poland)
    Abstract: Social network brand sites are increasingly attracting the attention of scientists and managers intrigued by their potential application for brand value creation. The aim of this research is to fill the gap in understanding how users choose among social networking sites as an act of brand identification. Social network users, unlike it is in real life, do not need to own branded products to use their image. For this reason their identification with brands can bring interesting implications for those who study brand value creation. The study presents a new model whose structure of social network brand sites identification drivers varies for customer brand identification in the real and virtual worlds. The presented model reveals that personal branding is a planned effect of brand identification and is crucial for brand value creation in social networks.
    Keywords: CBI, social network, personal branding, brand loyalty
    JEL: M30 M31 Y1
    Date: 2016–10
  9. By: Molina, Jose Alberto; Campaña, Juan Carlos; Ortega, Raquel
    Abstract: Internet use reduces the isolation or exclusion of individuals in specific socio-economic groups and, consequently, increases the quality of life, with this being especially the case for the elderly. Knowing that the elderly are becoming particularly active in dedicating time to the Internet, we provide evidence of the time that Spanish individuals aged 65 and older dedicate to two online activities: search and communications. Thus, our work contributes to the central objective of the Digital Agenda for Europa, which sets out to ensure universal broadband coverage across the European Union. We estimate a simultaneous SUR model with data from the 4,036 individuals aged 65 years (inclusive) and older from the Spanish Time Use Survey for 2009-2010. Results indicate that being male has a positive influence on the time devoted to search on the Internet, whereas age has a negative effect. Time devoted to both Internet activities increases with higher levels of education and at the highest level of individual health. By contrast, a greater number of family members has a negative influence on the time spent on search and, more so, on communications. Finally, living in a larger city produces a positive effect on the time dedicated to search.
    Keywords: Elderly, Internet, Time use, SUR model, Digital Agenda for Europa
    JEL: D12 J14 J22
    Date: 2016–10–10
  10. By: Briglauer, Wolfgang; Dürr, Niklas S.; Falck, Oliver; Hüschelrath, Kai
    Abstract: We evaluate the impact of a major European state aid program for broadband deployment applied to rural areas in the German State of Bavaria in the years 2010 and 2011. Using difference-in-differences estimation strategies, we find that aided municipalities have - depending on broadband quality - a between 16.8 and 23.2 percent higher broadband coverage than non-aided municipalities. This increase in broadband coverage - closing the digital divide - results in an increase of on average seven employed individuals living in the respective aid-receiving municipalities while leaving the number of employed or selfemployed individuals or wages unaffected. We therefore conclude that an increase in broadband coverage through state aid prevents rural areas from depopulation, but does not contribute to a further closing of the economic divide in the form of creating new jobs.
    Keywords: government policy,state aid,ex-post evaluation,broadband,employment, rural areas,European Union,Germany,Bavaria
    JEL: D62 D73 G38 H23 J23 K23 L52 L96 L98 R23
    Date: 2016
  11. By: Voigt, Sebastian
    Abstract: Many Internet service companies such as providers of two-sided markets, social networks, or online games rely on the social interaction between their user base and thus capitalize from positive network effects. For such companies, a common strategy is to offer (basic) services for free (and thereby abolish entry barrier of a one-off or recurring price) and to charge their users for premium services. Companies such as eBay, PayPal, LinkedIn, or Skype added paid services to their originally free business models, either via subscriptions, PAYG, or direct sales of virtual items. Their strategy how to make money and whom to bill however differs widely. In the Internet business, ‘monetization’ has become a frequently used buzzword for all aspects of a company’s revenue strategy which includes the decision who should be billed (e.g., for a two-sided market: seller vs. buyer vs. advertisers only), with which price model (e.g., mandatory subscription vs. optional subscriptions vs. selling virtual currency or items) and price level (e.g., differentiated between user groups), and – in case of a freemium strategy – how a new (free) user can be converted most efficiently into a paying and remunerative customer (e.g., via effective CRM measures). The overarching objective of all monetization measures is to maximize the company’s revenue and/or profit. The field of monetization offers a wide field of research opportunities. Four of these are covered in this dissertation: The Name-your-own-price model, users’ spending behavior in virtual communities, the monetization of network effects in social networks, and the legal boundaries of social network usage. As a result, this dissertation solves a series of questions currently being worked on by practitioners and uses a wide range of methods from various disciplines such as economic, psychological, and game theory.
    Date: 2016
  12. By: Tomasz Szczepanik (Czestochowa University of Techology); Katarzyna Sukiennik (Czestochowa University of Technology); Katarzyna Grondys (Czestochowa University of Technology); Marta Kadłubek (Czestochowa University of Technology)
    Abstract: The article describes the essence of information systems management to the needs of courier companies. The possibilities to use information systems to ensure the efficient flow of goods and information in the management of courier companies. Presented functionality DRP and CRM systems and the possibility of combining them with other systems available in the courier companies. The influence of the use of information systems in the distribution of courier services, and customer service. It shows the practical application of class systems DRP and CRM used in the processes of service delivery courier. Also examined the use of information systems and assess their suitability for delivery courier.
    Keywords: distribution, customer service, courier service, DRP, CRM
    JEL: M21
  13. By: Hermann Elendner; Simon Trimborn; Bobby Ong; Teik Ming Lee
    Abstract: Crypto-currencies have developed a vibrant market since bitcoin, the rst crypto-currency, was created in 2009. We look at the properties of cryptocurrencies as nancial assets in a broad cross-section. We discuss approaches of altcoins to generate value and their trading and information platforms. Then we investigate crypto-currencies as alternative investment assets, studying their returns and the co-movements of altcoin prices with bitcoin and against each other. We evaluate their addition to investors' portfolios and document they are indeed able to enhance the diversi cation of portfolios due to their little co-movements with established assets, as well as with each other. Furthermore, we evaluate pure portfolios of crypto-currencies: an equallyweighted one, a value-weighted one, and one based on the CRypto-currency IndeX (CRIX). The CRIX portfolio displays lower risk than any individual of the liquid crypto-currencies. We also document the changing characteristics of the crypto-currency market. Deepening liquidity is accompanied by a rise in market value, and a growing number of altcoins is contributing larger amounts to aggregate crypto-currency market capitalization.
    JEL: C51 C52 G10
    Date: 2016–10
  14. By: Louis Larue (UNIVERSITE CATHOLIQUE DE LOUVAIN, Chaire Hoover d’éthique économique et sociale et Economic School of Louvain)
    Abstract: De nombreuses monnaies parallèles circulent depuis toujours à côté de la monnaie officielle. Aujourd’hui, une nouvelle génération de monnaie est en train de naître des nouvelles technologies : les crypto-monnaies, dont l’exemple le plus connu est le bitcoin. Ces monnaies n’existent que sous forme de code informatique, sans équivalent papier ou métallique. Bien qu’elles constituent une avancée technologique remarquable, elles soulèvent de nombreux défis tant éthiques qu’économiques, que ce numéro de Regards économiques essaie d’éclairer
    Date: 2016–09–29

This nep-pay issue is ©2016 by Bernardo Bátiz-Lazo. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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