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on Payment Systems and Financial Technology |
| By: | Novice P. Bakehe; Ariel H. Fambeu; George B. Tamokwe Piaptie |
| Abstract: | The aim of this study was to analyse the changes in the determinants of Internet adoption and use in Cameroon. The study used two individual surveys carried out in 2008 and 2015. Using discrete choice models and a comparative analysis, the study was able to highlight three major results. Firstly, following the emergence of equipment that was more compatible with third-generation (3G) mobile technology (smartphones and tablets), possessing a “traditional” mobile telephone, which could enable Internet adoption in 2008, was no longer relevant in 2015. Other factors, such as being unemployed or possessing a laptop, which were not significant in 2008, had an impact on Internet use in 2015. Secondly, most of the socio-economic and social network factors which influenced Internet adoption and use in 2008 were still relevant in 2015. The key factors were the respondent’s education level, his/her age, and the number of Internet users in his/her social environment. Finally, the study found that the coefficients associated with the marginal effects of most of these invariant factors increased over time both in the Internet adoption and Internet use models. This means that as the Internet penetration rate increased and the means used to have Internet access became more diverse, the first-level and second-level digital divides tended to worsen. These results are likely to help the government develop and implement more effective digital policies aimed at promoting mass Internet use in Cameroon. One will think first and foremost of policies aimed at training and informing the people who do not have Internet access. However, it could also be policies that target those who already use the Internet but are “isolated”, and who do not have access to information and expert advice in their vicinity, and, who, as a consequence, use the Internet in a sub-optimal way and are likely to be disappointed. Key words:Internet adoption, Internet use, ICT, digital divide |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:aer:rpaper:rp_336&r=pay |
| By: | Hegadekatti, Kartik; S G, Yatish; T J, Satish |
| Abstract: | Mobile App based market is rapidly becoming popular. As such, it is an opportunity to bring hassle-free transactions to people’s mobile phones. But the multi-billion dollar App market pays a great amount of money in transaction costs and banking services. This paper provides a solution by integrating BlockChain technology with Mobile-App based economy. We first describe the various concepts involved in BlockChain and App technology. Then we deliberate on how the two can be brought together without a glitch in either of the systems. This model is named as the SKY Model, each letter in the word SKY respectively standing for the initials of the authors. We also discuss the various merits of a BlockChain amalgamated with Mobile App based economy. We then go on to show how a decentralised economic system can be brought about on Mobile Apps through The SKY Model of Limited BlockChain. |
| Keywords: | Blockchain, Apps, Decentralise |
| JEL: | E51 E52 E58 G18 O38 P11 P12 P13 |
| Date: | 2016–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82101&r=pay |
| By: | Angrisani, Marco (University of Southern California); Foster, Kevin (Federal Reserve Bank of Boston); Hitczenko, Marcin (Federal Reserve Bank of Boston) |
| Abstract: | This document serves as the technical appendix to the 2012 Diary of Consumer Payment Choice administered by the RAND Corporation. The Diary of Consumer Payment Choice (DCPC) is a study designed primarily to collect data on financial transactions over a three-day period by consumers over the age of 18 in the United States. In this data report, we detail the technical aspects of the survey design, implementation, and analysis. |
| Keywords: | survey design; samples election; raking; survey cleaning; poststratification estimates |
| JEL: | D12 D14 E4 |
| Date: | 2017–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbdr:17-5&r=pay |
| By: | Lurong Chen |
| Abstract: | Cross-border e-commerce has been a major development trend of international trade and globalization. In the next 5-10 years, the top three fastest-growing markets in the world-India, Indonesia, and Malaysia-will all come from Asia. Connectivity is the cornerstone of e-commerce development. E-commerce supporting connectivity aims to ease free information flow, logistics, free cash flow, and seamless links between the virtual and physical parts of e-commerce network. Accordingly, policy efforts include: increasing the supply of public goods to improve connectivity infrastructure in both physical world and cyberspace; establishing rules and regulations to ensure dynamics and competition of online marketplace; improving connectivity-derived services to generate more value added; prioritizing smartphone economy and Internet financial innovation, and collaboration in the region-wide E-commerce supporting environment. |
| Keywords: | digital economy, e-commerce, connectivity, developing Asia |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2017-11&r=pay |
| By: | Rosenbaum, Aaron (Board of Governors of the Federal Reserve System); Baughman, Garth (Board of Governors of the Federal Reserve System); Manuszak, Mark D. (Board of Governors of the Federal Reserve System); Stewart, Kylie (Board of Governors of the Federal Reserve System); Hayashi, Fumiko (Federal Reserve Bank of Kansas City); Stavins, Joanna (Federal Reserve Bank of Boston) |
| Abstract: | The U.S. payments industry is in the process of developing ubiquitous, safe, faster electronic solutions for making a broad variety of business and personal payments. How this market for faster payments will evolve will be shaped by a range of economic forces, such as economies of scale and scope, network effects, switching costs, and product differentiation. Emerging technologies could alter these forces and lead to new organizational arrangements or market structures that are different from those in legacy payment markets to date. In light of this uncertainty, this paper examines three hypothetical market structures that may emerge: a dominant operator environment, a multi-operator environment, and a decentralized environment. Each of these market structures has different implications for the public policy objectives of efficiency, safety, and ubiquity. The paper also considers tools to promote positive outcomes in each market structure. |
| Keywords: | faster payments; market structure; competition; payment system improvement; public policy; retail payments |
| JEL: | D4 E42 G2 L1 |
| Date: | 2017–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbcq:2017_004&r=pay |
| By: | Jane Kelsey |
| Abstract: | Digital technology offers exciting new opportunities and advances for ASEAN member states, individually and as a region. The benefits have so far been captured by first movers, especially in the United States. ASEAN countries need time and flexibility to develop their own digital industrialization strategies that can harness the potential gains and minimize the risks, and regulate accordingly. This paper explains how that opportunity would be foreclosed by a new normative framework on electronic commerce and cross-border services that is being systematically advanced by developed countries on behalf of their globally dominant digital industries. Starting with the Trans-Pacific Partnership Agreement, the template is being promoted through a network of mega-regional trade and investment agreements, including the Regional Comprehensive Economic Partnership and potentially the World Trade Organization. Instead of delivering a digital dividend to ASEAN countries, this model of e-commerce could impede their development, create negative fiscal and employment consequences, and leave them dependent on an oligopoly of private corporations that control the global digital infrastructure and mass data. ASEAN member states will need to resist those proposals if they are to maintain their regulatory sovereignty and the policy space to capitalize on the 21st century digital revolution. |
| Keywords: | e-commerce, ASEAN, mega FTAs, WTO, RCEP |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2017-10&r=pay |
| By: | William Barnett (Department of Economics, The University of Kansas; Center for Financial Stability, New York City; IC2 Institute, University of Texas at Austin); Liting Su (Department of Economics, The University of Kansas;) |
| Abstract: | A monetary-production model of financial firms is employed to investigate supply-side monetary aggregation, augmented to include credit card transaction services. Financial firms are conceived to produce monetary and credit card transaction services as outputs through financial intermediation. While credit cards provide transactions services, credit cards have never been included into measures of the money supply. The reason is accounting conventions, which do not permit adding liabilities to assets. However, index number theory measures service flows and is based on microeconomic aggregation theory, not accounting. Barnett, Chauvet, Leiva-Leon, and Su (2016) have derived and applied the relevant aggregation theory applicable to measuring the demand for the joint services of money and credit cards. But because of the existence of required reserves and differences in taxation on the demand and supply side, there is a regulatory wedge between the demand and supply of monetary services. We derive theory needed to measure the supply of the joint services of credit cards and money, to estimate the output supply function, and to compute value added. The resulting model can be used to investigate the transmission mechanism of monetary policy. Earlier results on the monetary policy transmission mechanism based on the correlation between simple sum inside money and final targets are not likely to approximate or even be relevant to results that can be acquired by empirical implementation of this model or its extensions. Our financialfirm value-added measure and its supply function are fundamentally different from prior measures of inside money, shadow banking output, or money supply functions. The data needed for empirical implementation of our theory are available online from the Center for Financial Stability (CFS) in New York City. We show that the now discredited conventional accounting-based measures of privately produced inside money can be replaced by our measures, based on microeconomic aggregation theory, to provide the information originally contemplated in the literature on monetary theory for over a century. |
| Keywords: | Credit Cards, Money, Credit, Aggregation, Monetary Aggregation, Index Number Theory, Divisia Index, Risk, Euler Equations, Asset Pricing |
| JEL: | C43 C53 C58 E01 E3 E40 E41 E51 E52 E58 G17 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:kan:wpaper:201707&r=pay |
| By: | V. Bhaskar; Robin Linacre; Stephen Machin |
| Abstract: | The online market for buying and selling drugs is resilient and seems to bounce back rapidly after the exit of a large platform like Silk Road. That is one of the findings of research by Stephen Machin and colleagues, who have collected and analysed information on around 1.5 million drugs transactions on the so-called 'dark web' to understand the economic functioning of these markets. The researchers also find that only a small minority of online drugs deals receive bad ratings from buyers; and sellers that do receive bad ratings typically experience significant sales reductions. The study concludes that in the 'war on drugs', law enforcement needs more resources and better means to tackle drug buying and selling in the cyber domain. |
| Keywords: | dark web, drugs |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:514&r=pay |
| By: | Ivelin Elenchev; Aleksandar Vasilev (Centre for Economic Theories and Policies, Sofia University St. Kliment Ohridski) |
| Abstract: | The present paper develops three models that help predict the success rate and attainable investment levels of online crowdfunding ventures. This is done by applying standard economic theory and machine learning techniques from computer science to the novel sector of online crowd-based micro-financing. In contrast with previous research in the area, this paper analyzes transaction-level data in addition to information about completed crowdfunding projects. This provides an unique perspective in the ways crowdfinance ventures develop. The models reach an average of 83% accuracy in predicting the outcome of a crowdfunding campaign at any point throughout its duration. These fundings prove that a number of product and project specific parameters are indicative of the success of the venture. Subsequently, the paper provides guidance to capital seekers and investors on the basis of these criteria, and allows participants in the crowdfunding marketplace to make more rational decisions. |
| Keywords: | microfinance, entrepreneur finance, crowdfunding |
| JEL: | M20 G24 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:sko:wpaper:bep-2017-09&r=pay |
| By: | Anuj Kapoor (University of Utah); Catherine Tucker (MIT Sloan) |
| Abstract: | Online rating systems can lead, on occasion, to reviews that are unfair or unrepresentative of the true quality provided. On the one hand, receiving an unfairly low rating once, might induce someone a platform supplier to exert more effort and receive a better rating the next time. On the other hand, it might dispirit suppliers and make them exert less effort. We use data from a ride-sharing platform in India where driver ratings were made particularly salient to the driver after each trip. Our data suggests that if a customer experiences a ride cancellation, they are more likely to unfairly blame the replacement driver. We use this as a exogenous source of unfair negative ratings for the driver. We show that drivers are more likely to respond negatively to a bad rating and receive subsequently bad ratings if they were blameless for the previous negative rating. This effect is larger in contexts where there is a higher potential for an emotional response and when there is a greater need for driver skill in the subsequent ride. |
| Keywords: | The Sharing Economy, User Generated Content, Ratings |
| JEL: | L86 M37 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1719&r=pay |
| By: | Salomon Faure; Hans Gersbach |
| Abstract: | We study money creation and destruction in today’s monetary architecture within a general equilibrium setting. Two types of money are created and destructed: bank deposits, when banks grant loans to firms or to other banks, and central bank money, when the central bank grants loans to private banks. We show that symmetric equilibria yield the first-best allocation when prices are exible, regardless of the monetary policy or capital regulation. When prices are rigid, we identify the circumstances in which money creation is excessive or breaks down and how an adequate combination of monetary policy and capital regulation may restore efficiency. |
| Keywords: | money creation, bank deposits, capital regulation, zero lower bound, monetary policy, price rigidities |
| JEL: | D50 E40 E50 G21 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6565&r=pay |
| By: | Elenchev, Ivelin; Vasilev, Aleksandar |
| Abstract: | The present paper develops three models that help predict the success rate and attainable investment levels of online crowdfunding ventures. This is done by applying standard economic theory and machine learning techniques from computer science to the novel sector of on-line crowd-based micro- financing. In contrast with previous research in the area, this paper analyzes transaction-level data in addition to information about completed crowdfunding projects. This provides an unique perspective in the ways crowd finance ventures develop. The models reach an average of 83% accuracy in predicting the outcome of a crowdfunding campaign at any point throughout its duration. These ndings prove that a number of product and project specifi c parameters are indicative of the success of the venture. Subsequently, the paper provides guidance to capital seekers and investors on the basis of these criteria, and allows participants in the crowdfunding marketplace to make more rational decisions. |
| Keywords: | microfinance,entrepreneurial finance,crowdfunding |
| JEL: | C0 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:170681&r=pay |
| By: | OECD |
| Abstract: | Trust is a key component in peer platform markets (PPMs). In 2016, the OECD’s Committee on Consumer Policy (CCP) produced a report on Protecting consumers in peer platform markets: Exploring the issues. The 2016 report examined a number of the mechanisms that peer platforms have themselves developed to help engender trust in and use of their services (e.g. initiatives such as ratings and reviews) and raised a set of questions for further research and reflection. In order to understand better the role and drivers of consumer trust in PPMs, the CCP conducted an online survey of 10 000 consumers across ten OECD member countries. This report discusses the findings of that survey. |
| Date: | 2017–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaab:263-en&r=pay |
| By: | Hegadekatti, Kartik; S G, Yatish |
| Abstract: | Crypto currencies like Bitcoin are gaining prominence as a medium of exchange. They have several benefits like very low transaction cost, fungibility etc. But Crypto currencies are also identified with their use in crimes, illegal activities and speculation. Part of the reason for their prominence as well as notoriety is the fact that they have no Sovereign Backing whatsoever and also because they are decentralized. To make Crypto currencies acceptable by the people and also curb their misuse, the authors have proposed a protocol containing a set of standards and procedures. By using this procedure, any nation can create its own Sovereign Backed crypto currency called NationCoin. A commission will be established which will hold a certain quantum of money loaned by the Government. This loaned money will provide the Sovereign backing to the Crypto Currency. A Controlled Block Chain Protocol is used. The Genesis Block of several NationCoins is then provided to the banks in the country to use them for interbank settlements. These Interbank transactions will lead to the mining (generation) of additional NationCoins by the commission which will hold it without releasing it to the public. Once there are sufficient numbers of NationCoins so as to be equal to the loaned amount unit-for-unit, it shall be released to the public for use. |
| Keywords: | bitcoin, blockchain, cryptocurrency |
| JEL: | E51 E52 E58 F33 G18 O38 |
| Date: | 2016–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82067&r=pay |
| By: | Hegadekatti, Kartik; S G, Yatish |
| Abstract: | In this paper, we examine the Taxation aspects of Fiat money and Bitcoins vis-a-vis Regulated Cryptocurrencies. We start off by briefly explaining the concept of cryptocurrencies (also referred to as cryptocoins in this paper). We then discuss the concept of Regulated and Sovereign Backed Cryptocurrencies (RSBCs). Then we envisage a scenario where cryptocoins are the main medium of exchange. The taxation aspects of Paper money, Bitcoins and RSBCs are then deliberated with the pros and cons of taxation for each currency format. The currency that can support an Automated Tax Regime is also debated. Finally, the paper concludes by arranging in ascending order, the currencies which are easily amenable to and compliant with taxation policies and laws. |
| Keywords: | Taxation, Bitcoins, K-Y Protocol, NationCoins, RSBC |
| JEL: | E42 E52 H21 H24 H26 |
| Date: | 2016–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82073&r=pay |
| By: | Jakobi, Ákos; Lőcsei, Hajnalka |
| Abstract: | In the first sight, it seems to be obvious that Nike, the well-known US sports equipment company, is predominant in Great Britain; however, the European (German) giant, Adidas also happens to be very popular in the country. The duel between the global first and second sportswear companies can be traced back to not just their sales numbers in a bid to gain larger market share, but also to soft factors, such as reputation. The only problem is that reputation can be at best measured by well-organized questionnaire data of population samples, which are sometimes difficult to administer. However, this issue can be also solved by capturing the presence of indirect knowledge about the brands, for example, from the geographically localizable content of cyberspace. The indirect application of digital footprints in scientific analyses has notable examples, in which the conclusions are based on the examination of digital data that have been generated as by-products of socio-economic phenomena. |
| Keywords: | Brand, cyberspace, GIS |
| JEL: | L67 R11 R12 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76856&r=pay |
| By: | Hegadekatti, Kartik; S G, Yatish |
| Abstract: | In this paper, we analyse the workings of commercial banks in a scenario where crypto-currencies are the mainstream bills of exchange. We start by explaining the concept of cryptocurrencies (also referred to as cryptocoins in this paper). Then we discuss the concept of Regulated and Sovereign Backed Cryptocurrencies (RSBCs). Later on, we envisage a scenario where cryptocoins are the main media of exchange. The banking aspects of Paper money, Bitcoins and RSBCs are then deliberated. We analyse the interplays between Banking and various currency formats. Finally, the paper concludes as to which currency is best suited to be the mainstream bill of exchange. |
| Keywords: | Banking, Cryptocurrencies, Bitcoin, Blockchain |
| JEL: | E51 E52 E58 F33 G18 G21 O38 |
| Date: | 2016–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82100&r=pay |
| By: | Hegadekatti, Kartik; S G, Yatish |
| Abstract: | The K-Y Protocol envisages the introduction of RSBCs (Regulated and Sovereign Backed Cryptocurrencies). In this paper we discuss in detail the establishment of a Controlled Block Chain based on the K-Y Protocol. It is primarily accomplished using the NationCoin system. There are two aspects to the NationCoin system. The software and the hardware aspect. The software necessary to write and run the Block Chain on the hardware is envisaged. The hardware needed to run and sustain the blockchain is then deliberated. A host of institutions have also been envisioned to create, support and run the NationCoin system. The DAR will be the main institution responsible for creating the Controlled Block Chain architecture. The costing, timeline and the interplay of institutions are also outlined. |
| Keywords: | K-Y Protocol, Controlled Block Chain, RSBC, Distributed Ledger |
| JEL: | E51 E52 E58 G18 O38 |
| Date: | 2016–08–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:82070&r=pay |
| By: | Guglielmo Maria Caporale; Alex Plastun |
| Abstract: | This paper examines the day of the week effect in the crypto currency market using a variety of statistical techniques (average analysis, Student's t-test, ANOVA, the Kruskal-Wallis test, and regression analysis with dummy variables) as well as a trading simulation approach. Most crypto currencies (LiteCoin, Ripple, Dash) are found not to exhibit this anomaly. The only exception is BitCoin, for which returns on Mondays are significantly higher than those on the other days of the week. In this case the trading simulation analysis shows that there exist exploitable profit opportunities that can be interpreted as evidence against efficiency of the crypto currency market. |
| Keywords: | efficient market hypothesis, day of the week effect, crypto currency, BitCoin, anomaly, trading strategy |
| JEL: | G12 C63 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6716&r=pay |