nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2017‒04‒02
twelve papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Inclusive Innovation and Rapid Sociotechnical Transitions: The Case of Mobile Money in Kenya By Elsie Onsongo; Johan Schot
  2. Enabling a Mobile Cloud Service: Data-Sharing in Ad-hoc Device-to-Device Mobile Networks By Ranganathan, Kavitha
  3. Is EMV adoption changing card payments? Evidence from the European Union By Vania Silva; Esmeralda Ramalho; Carlos Vieira
  4. The educational use of Digital Storytelling in virtual classes of Entrepreneurship: A comprehensive study of students’ perceptions By Luísa Cagica Carvalho; Bruno Cibrão
  5. Social movements and the Internet: The sociotechnical constitution of collective action By Dolata, Ulrich
  6. Monedas digitales emitidas por los bancos centrales: adopción y repercusiones By Olga Gouveia; Enestor Dos Santos; Santiago Fernández de Lis; Alejandro Neut; Javier Sebastián
  7. Should Platforms be Allowed to Charge Ad Valorem Fees? By Wang, Zhu; Wright, Julian
  8. Social Media und Banken – Die Reaktionen von Facebook-Nutzern auf Kreditanalysen mit Social Media Daten By Jan Justus Brenger; Annemarie Kühn; Georg Gliem; Marianne Nake; Markus Neuber; Daniel Wulf; Friedrich Thießen
  9. Evidence That Calls-Based and Mobility Networks Are Isomorphic By Michele Coscia; Ricardo Hausmann
  10. The use of cheques in the European Union: a cross-country analysis By Vania Silva; Esmeralda Ramalho; Carlos Vieira
  11. Pathways for capacity building in heterogeneous value chains: Evidence from the case of IT-enabled services in South Africa By Keijzer, Charlotte; Iizuka, Michiko
  12. How Data Breaches Affect Consumer Credit By Mikhed, Vyacheslav; Vogan, Michael

  1. By: Elsie Onsongo (Strathmore University); Johan Schot (University of Sussex - Science and Technology Policy Research Unit (SPRU))
    Abstract: Mobile money innovation is at the centre of a sociotechnical transformation in the financial services sector in Kenya that saw changes in the regulatory framework, in market shares, user practices and social networks across multiple regimes. While sociotechnical transitions often take about 50 years, the mobile money revolution in Kenya has taken only 15 years, and has resulted in remarkable levels of financial inclusion of marginalised people. In this paper we combine the multi-level perspective (MLP) from the sustainability transitions literature and the Ladder of Inclusivity (LII) from the inclusive innovation literature to explain this rapid transformation. Applying both frameworks to the case enables us to elucidate potential areas for cross-fertilisation between MLP and LII, thus responding to calls for the inclusion of a social dimension in the transitions perspective, while explaining how processes of change envisioned (but weakly defined) in LII can be explored. Based on our findings, we hypothesise that a rapid socio-technical system transition takes 1) strong landscape pressures, an opening up of regime which makes regime actors willing to act and strong niche development all oriented towards the same goal, and 2) regime actors motivated by the normative goal to take risks and respond favourably to the mix of developments at all three levels.
    Keywords: Sustainability transitions, multilevel perspective, inclusive innovation, ladder of inclusivity, mobile money, financial services
    Date: 2017–03
  2. By: Ranganathan, Kavitha
    Abstract: The objective of this work is to build a data-sharing application for an ad-hoc network of mobile devices, where users can exchange data/files among themselves without relying on traditional communication channels like telecom or network operators. In other words, we aim to build a mobile cloud service for data sharing. This paper examines the resource discovery and selection (also called replica selection) issue in such a mobile cloud. We propose a novel decentralized algorithm where nodes can first discover and then choose the best replica to request for, from among the different alternatives identified. Additionally, our paper comes up with a new metric to evaluate different replicas, that is, what could be a desirable definition of the ‘best’ replica in such a network.
  3. By: Vania Silva (CEFAGE, Universidade de Évora, Portugal); Esmeralda Ramalho (Department of Economics and CEFAGE-UE, Universidade de Évora); Carlos Vieira (Department of Economics and CEFAGE-UE, Universidade de Évora)
    Abstract: The EMV standard – a technology developed by Europay, MasterCard and Visa that protects information more effectively than magnetic stripes – aims to reduce fraud in face-to-face card payments. By influencing the perceived/real safety of card payments, this standard might be shaping payment habits. This paper examines the effect on cards usage of the migration process to EMV in the European Union. Using data for the period 2006-2011, we found evidence that the progress in the adoption of this standard had a statistically significant positive impact in card payments when controlling the effects of socio-demographic, economic, technological and institutional factors, particularly in non euro area countries.
    Keywords: European Union; Retail Payments; Cards; EMV.
    JEL: F36 G21
    Date: 2016
  4. By: Luísa Cagica Carvalho (Universidade Aberta and CEFAGE - Universidade de Évora, Portugal); Bruno Cibrão (Universidade Aberta, Portugal)
    Abstract: Nowadays there is a consensus on the importance that is given to entrepreneurship in the creation of wealth and employment in countries. In this context, entrepreneurship education is particular relevant. In fact, although there are currently several studies that investigates teaching methods of entrepreneurship in classroom, this subject continues understudied with regard to virtual classes where physical distance can difficult or even make impossible the use of some of the methodologies reported in several studies on this matter. Therefore this article gives some background on the notion of Digital Storytelling, enhancing its relevance to the development of entrepreneurial skills, taking into account their particularities and the appropriate technologies. It also presents a study on the application of this methodology in a virtual class of entrepreneurship at Universidade Aberta (Uab). The results of virtual class students’ perception on the use of Digital Storytelling in entrepreneurship teaching, suggests benefits in the use of this methodology.
    Keywords: Digital Storytellin; Empreendedorismo; Ensino Virtual; Metodologia.
    Date: 2016
  5. By: Dolata, Ulrich
    Abstract: For some years, the field of research on social movements has undergone fundamental changes. This is due above all to the internet and social media platforms that have become an integral part of the emergence, organization and mobilization of protest. This article examines the role which these new technical infrastructures play in the development and stabilization of political protest and social movements. For this, it pursues two main objectives: One, a more precise identification of the technical foundations of collective behavior and action, which show the internet to be not only an enabling but also a regulatory and action-structuring infrastructure with a considerable degree of intervention. Two, the analysis of the new and close interplay of social and technical conditions under which collective protest and social movements take shape in the digital age, referred to as 'technically advanced sociality.
    Date: 2017
  6. By: Olga Gouveia; Enestor Dos Santos; Santiago Fernández de Lis; Alejandro Neut; Javier Sebastián
    Abstract: Los libros contables distribuidos (distributed ledgers, en inglés) constituyen una tecnología que permite una versión digitalizada del dinero en efectivo al tiempo que potencialmente mantiene sus cuatro características principales: la universalidad, el anonimato, la intercambiabilidad entre pares (P2P) y un valor nominal constante.
    Keywords: Banca , Documento de Trabajo , Economía Digital , Global
    JEL: E42 E50 E61 G20 O33
    Date: 2017–03
  7. By: Wang, Zhu (Federal Reserve Bank of Richmond); Wright, Julian (National University of Singapore)
    Abstract: Many platforms that facilitate transactions between buyers and sellers charge ad valorem fees in which fees depend on the transaction price set by sellers. Given these platforms do not incur significant costs that vary with transaction prices, their use of ad valorem fees has raised controversies about the efficiency of this practice. In this paper, using a model that connects platforms' use of ad valorem fees to third-degree price discrimination, we evaluate the welfare consequences of banning such fees. We find the use of ad valorem fees generally increases welfare, including for calibrated versions of the model based on data from Amazon's marketplace and Visa's signature debit cards.
    Keywords: platforms; taxation; third-degree price discrimination
    JEL: D4 H2 L5
    Date: 2017–03–22
  8. By: Jan Justus Brenger; Annemarie Kühn; Georg Gliem; Marianne Nake; Markus Neuber; Daniel Wulf; Friedrich Thießen (Professur für Finanzwirtschaft und Bankbetriebslehre, Faculty of Economics and Business Administration, Chemnitz University of Technology)
    Abstract: Der Trend zur Auswertung aller nur möglichen Datenbestände für kommerzielle Zwecke ist eine nicht mehr aufzuhaltende Entwicklung. Auch für die Kreditwürdigkeitsprüfung wird überlegt, Da- ten aus Sozialen Netzwerken einzusetzen. Die Forschungsfrage entsteht, wie die Nutzer dieser Netzwerke reagieren, wenn Banken ihre privaten Profile durchsuchen. Mit Hilfe einer Befragung von 271 Probanden wurde dieses Problem erforscht. Die Ergebnisse sind wie folgt: Die betroffenen Bürger sehen die Entwicklung mit Sorge. Sie begreifen ganz rational die neuen Geschäftsmodelle und ihre Logik und erkennen die Vorteile. Sie stehen dem Big-Data-Ansatz nicht vollkommen ablehnend gegenüber. Abgelehnt wird es aber, wenn sich Daten aus sozialen Medien negativ für eine Person auswirken. Wenn man schon sein Facebook-Profil einer Bank öffnet, dann will man einen Vorteil davon haben, keinen Nachteil. Ein Teil der Gesellschaft lehnt das Schnüffeln in privaten Daten strikt ab. Insgesamt sind die Antworten deutlich linksschief verteilt mit einem sehr dicken Ende im ablehnenden Bereich. Das Schnüffeln in privaten Daten wird als unethisch und unfair empfunden. Die Menschen fühlen sich im Gegenzug berechtigt, ihre Facebook-Daten zu manipulieren. Eine wie-Du-mir-so-ich-Dir-Mentalität ist festzustellen. Wer kommerziell ausgeschnüffelt wird, der antwortet kommerziell mit Manipulationen seiner Daten. Insgesamt ist Banken zu raten, nicht Vorreiter der Entwicklung zu sein, sondern abzuwarten, wel- che Erfahrungen Fintechs machen. Banken haben zu hohe Opportunitätskosten in Form des Ver- lustes von Kundenvertrauen.
    Keywords: Social Media, Kreditwürdigkeitsprüfung, Kreditanalyse, Facebook, Big-Data
    JEL: G20 G21 G23
    Date: 2017–03
  9. By: Michele Coscia (Center for International Development at Harvard University); Ricardo Hausmann (Center for International Development at Harvard University)
    Abstract: Social relations involve both face-to-face interaction as well as telecommunications. We can observe the geography of phone calls and of the mobility of cell phones in space. These two phenomena can be described as networks of connections between different points in space. We use a dataset that includes billions of phone calls made in Colombia during a six-month period. We draw the two networks and find that the call-based network resembles a higher order aggregation of the mobility network and that both are isomorphic except for a higher spatial decay coefficient of the mobility network relative to the call-based network: when we discount distance effects on the call connections with the same decay observed for mobility connections, the two networks are virtually indistinguishable.
    Date: 2015–12
  10. By: Vania Silva (CEFAGE, Universidade de Évora, Portugal); Esmeralda Ramalho (Department of Economics and CEFAGE-UE, Universidade de Évora); Carlos Vieira (Department of Economics and CEFAGE-UE, Universidade de Évora)
    Abstract: Some European Union (EU) countries have implemented policies to discourage the use of cheques due to its considerable social costs and risks. This paper provides a cross-country analysis for the period 2000-2012 of the determinants of cheque usage, measured both as per capita number and share of payments. Special attention is given to the effects of the application of fees in a framework where unfunded cheques are considered as an autonomous type of crime in some EU countries. Our results suggest that the existence of fees influences negatively cheque usage, even when there are legal elements that increase its security.
    Keywords: European Union, Retail Payments, Cheques, Panel Data.
    JEL: F36 G21 E41 E42
    Date: 2016
  11. By: Keijzer, Charlotte (UNU-MERIT, and Maastricht University); Iizuka, Michiko (UNU-MERIT, and Maastricht University)
    Abstract: The global value chain (GVC) approach has stressed that inter-firm linkages within GVCs can create new opportunities for capabilities formation in developing countries. However, little is known about how firms from developing countries engage and benefit from participation in GVCs of services. Using data collected from 44 interviews of IT-enabled service providers in South Africa, this paper explores how service providers in developing countries build service delivery competence critical to their performance, focusing specifically on the development of human resource management capabilities and domain expertise. Results show that participation in GVCs triggers learning processes for firms that are crucial in building service delivery competence, especially in the absence of a strong national system of innovation. Nevertheless, interactions between actors and institutions within the country, as well as internal firm resources are critical to acquire and adapt foreign-sourced knowledge to the local context. Finally, we find local and regional value chains of IT-enabled services offer additional learning avenues for capability formation and potential pathways into GVCs for domestic firms.
    Keywords: Global value chains, regional value chains, system of innovation, human resource development, organisational learning, IT-enabled services, South Africa
    JEL: D83 O14 O15 O33 O38
    Date: 2017–02–17
  12. By: Mikhed, Vyacheslav (Federal Reserve Bank of Philadelphia); Vogan, Michael (Federal Reserve Bank of Philadelphia)
    Abstract: We use the 2012 South Carolina Department of Revenue data breach as a natural experiment to study how data breaches and news coverage about them affect consumers’ interactions with the credit market and their use of credit. We find that some consumers directly exposed to the breach protected themselves against potential losses from future fraudulent use of stolen information by monitoring their files and freezing access to their credit reports. However, these consumers continued their regular use of existing credit cards and did not switch lenders. The response of consumers exposed to the news about the breach only was negligible.
    Keywords: identity theft; fraud alert; data breach; consumer protection; credit report
    JEL: C23 D12 G02 G22
    Date: 2017–03–23

This nep-pay issue is ©2017 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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