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on Payment Systems and Financial Technology |
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Issue of 2024‒07‒15
twenty-two papers chosen by |
| By: | Mohamed Wael Ben Khaled (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur); Nadia Ouertani Abaoub (UMA - Université de la Manouba [Tunisie]) |
| Abstract: | Digital platforms are becoming more important in transforming the energy industry and altering the way we produce, distribute, and use energy. This paper explores the role of energy platforms in the transition towards renewable energy. We highlight, through real-life examples, that these platforms foster a participatory approach, convert consumers into proactive participants, democratize energy production, and encourage innovation in areas such as storage, electric mobility, and renewable project investments. Through a comprehensive review of the current literature, technological advancements, and emerging business models, we identify the possible key contributions of digital platforms to the energy sector. These platforms offer personalized user experiences, mutual benefits for users and companies, adaptability to market changes, support for peer-to-peer trade, and a reduction in bureaucracy. We then present a pioneering conceptual model by Liu et al. (2022), which integrates the energy cloud, digital platform, and transaction platform and we explore the business model of energy platforms. This business model is characterized by connectivity, innovative pricing, and revenue strategies independent of physical asset ownership. Advanced technologies like artificial intelligence and blockchain facilitate peer-to-peer energy trading, dynamic pricing, and a focus on transaction and access fees over traditional cost structures. Drawing on the business model and previous analysis we update the conceptual model for energy platforms to present a practical vision through a holistic approach. |
| Keywords: | energy platforms, platforms, energy transition, renewable energy, digitalization |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04612503&r= |
| By: | Diouf, Awa; Carreras, Marco; Santoro, Fabrizio |
| Abstract: | Financial inclusion – where individuals and businesses have access to useful and affordable financial products and services that meet their needs, delivered in a responsible and sustainable way – is a critical component of economic development. It is particularly important in sub-Saharan Africa (SSA), where there can be little traditional banking infrastructure. The success of M-PESA in Kenya shows that mobile money is helping financial inclusion in the region. Those in rural or underserved areas can use mobile money to access basic financial services – savings, payments, and credit – through their mobile phones. This is critical for impoverished households, helping them to manage their finances, build resilience, and participate more actively in the economy. Financial inclusion aligns with broader development goals, such as poverty reduction and gender equality, by empowering marginalised groups, including women and small-scale entrepreneurs. However, taxation policies can be a threat to the adoption of mobile money in Africa. This study assesses the short and long-term impact of the Kenyan excise duty on the use of mobile money. Summary of ICTD Working Paper 168. |
| Keywords: | Finance, |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:idq:ictduk:18399&r= |
| By: | Clemens Graf von Luckner (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Carmen Reinhart (Harvard University); Kenneth Rogoff (Department of Economics, Harvard University - Harvard University) |
| Abstract: | This paper employs high frequency transactions data on the world's two oldest and most extensive centralized peer-to-peer Bitcoin markets, enabling trade in the currencies of more than 160 countries. We develop an algorithm that allows us, with high probability, to detect "crypto vehicle transactions" in which crypto currency is used to move capital across borders, and/or to exchange one fiat currency for another. The data suggest that the use of Bitcoin has become an increasingly important channel to receive remittances and evade capital controls in emerging markets. Two event studies on Venezuela and Argentina provide supporting evidence. |
| Keywords: | cryptocurrencies, bitcoin, international capital flows, transactions, speculative bubbles |
| Date: | 2023–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04603357&r= |
| By: | Arvidsson, Niklas (KTH Royal Institute of Technology); Harahap, Fumi (KTH Royal Institute of Technology); Urban, Frauke (KTH Royal Institute of Technology); Nurdiawati , Anissa (KTH Royal Institute of Technology) |
| Abstract: | The expansion of digital payment services like retail Central Bank Digital Currencies (rCBDCs) built on innovative ICT infrastructure, notably datacenters, raises questions regarding potential environmental consequences due to electricity consumption. The design of such systems is critical for environmental impact as it scales with multiple actors and complex protocols as well as being influenced by server location and energy sources. In addition to other critical issues related to rCBDCs, understanding its environmental impact is therefore crucial for policymakers if they are to ensure sustainability. This study analyses one potential rCBDC, the Swedish e-krona project, by focusing on design choices and electricity consumption by comparing to existing retail payment services. Findings indicate that the energy use per transaction of the e-krona is comparable to that of card payments. There are, at the same time, significant differences in energy use depending on whether the design of the infrastructure for the e-krona is centralized or decentralized, where a centralized solution tend to be less energy consuming than a decentralized solution. The study has deployed a lifecycle perspective to explore energy consumption scenarios across various ledger infrastructures enabling a comprehensive assessment. |
| Keywords: | Energy Consumption; Climate Impact; Digital Payment; E-krona; rCBDC |
| JEL: | E58 O38 P44 Q58 |
| Date: | 2024–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:rbnkwp:0437&r= |
| By: | Dimitris Drakopoulos; Mr. Yibin Mu; Dmitry Vasilyev; Mr. Mauricio Villafuerte |
| Abstract: | Cross-border payment inefficiencies are a significant barrier to trade both within Latin America and the Caribbean (LAC) and between LAC and other regions. This paper provides a comprehensive review of historical efforts undertaken by various countries within the LAC region to address these challenges. We also explore the potential of recent financial innovations, such as digital currencies and blockchain technology, to enhance cross-border payments. While new technologies do not substitute for prudent and credible macroeconomic policies, leveraging these technologies can help LAC countries reduce transaction costs and times, thus enhancing economic efficiency and fostering deeper regional and global trade relationships. |
| Keywords: | Cross-Border Payments; Financial Innovation; International Trade; Economic Integration. |
| Date: | 2024–06–14 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/119&r= |
| By: | Emanuele Bacchiega (Department of Computer Science and Engineering, University of Bologna, Italy); Elias Carroni (Department of Economics, University of Bologna, Italy); Alessandro Fedele (Faculty of Economics and Management, Free University of Bozen-Bolzano, Italy) |
| Abstract: | The Hotelling model is the workhorse for analyzing platform competition in two-sided markets. In this setup, the degree of platform differentiation must be high relative to cross-group benefits to eschew the alleged non-existence of Nash equilibria. The present paper shows instead that Nash equilibria exist even for relatively low differentiation; at such equilibria, platforms avoid competition by replicating a collusive outcome. This result widens our knowledge of the two-sided Hotelling model and is relevant for a large array of markets --especially digital ones-- where platforms operate in relatively low-differentiation environments. |
| Keywords: | Hotelling model; Platform competition; Two-sided markets; Equilibrium existence. |
| JEL: | L13 C72 D21 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:bzn:wpaper:bemps106&r= |
| By: | Daniela Balutel; Christopher Henry; Jorge Vásquez; Marcel Voia |
| Abstract: | Cryptoassets, such as Bitcoin, represent a new type of financial technology that has grown substantially in recent years in terms of market size. Previous research has documented the characteristics and motivations of early Bitcoin adopters, but less work has been done studying those who choose to exit the Bitcoin market. We develop a theoretical model of both entry and exit to the Bitcoin market, the dynamics of which are driven by agents’ beliefs about Bitcoin’s survival. We connect the model to micro-level data from Canada, allowing us to empirically test the role of beliefs in transitioning to past ownership. Using a control function approach with appropriate exclusion restrictions, we estimate the effects of beliefs while controlling both for selection into or out of Bitcoin ownership and for possible simultaneity. We find evidence that beliefs are significant predictors of exit, while the size and direction of these effects differ across time and ownership status. |
| Keywords: | Bank notes; Central bank research; Coronavirus disease (COVID-19); Financial services; International topics |
| JEL: | E41 E42 E58 F22 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocawp:24-22&r= |
| By: | Shenle Pan (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper examines the potential contribution of blockchain (BC) technology to the Physical Internet (PI) for enhancing logistics collaboration management, and proposes a forward-looking deployment framework. Inspired by the digital internet, PI is a worldwide emerging logistics paradigm that advocates the interconnection of independent and heterogeneous logistics networks for the mutual sharing of services and assets. Such a paradigm will fundamentally challenge current operations management models and practices to achieve PI-based cooperation and co-opetition. New information technologies, notably BC technology including smart contracts and tokens, are considered promising in this regard. This paper aims to contribute to research by investigating why and how BC can be used in PI from the perspective of collaboration management. We then propose a framework for the deployment of BC in PI from operational to strategic levels. The key requirements as well as challenges to applying state-of-the-art BC technology to PI are also investigated. |
| Keywords: | logistics, supply chain, Blockchain, Smart Contract, Token incentives, Physical Internet, collaboration management, digital interoperability |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04600654&r= |
| By: | Jacobs, Charity S.; Ng, Hui Xian Lynnette; Carley, Kathleen M. |
| Abstract: | This study analyzes two covert Chinese bot networks, employing tweet-based and account-based methods to find detection evasion tactics. We reveal the use of message artifacts that disguise spam, engagement strategies that mimic human interaction, and behavioral patterns suggesting algorithmic control. We uncover bot maintenance practices and algorithmic account naming conventions. These insights demonstrate the evolving strategies of inauthentic digital personas, enhance our understanding of online disinformation campaigns, and inform the development of digital manipulation countermeasures. Comparing campaigns in 2021 and 2023, we discover that the techniques used by state-sponsored actors shifted from text-based to image-based techniques, indicating the increased sophistication of these actors to evade the detection algorithms of the social media platform. This work provides insight into the tactics of covert bot networks and discusses possible advancements in detection techniques. |
| Date: | 2024–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:kzjbg&r= |
| By: | Shawn Berry |
| Abstract: | The popularity of social media influencers (SMI) as a means for businesses and causes to engage with the public and develop followers is undeniable. However, the use of SMI have been scrutinized due to various scandals that reflect poorly on brands and firms. Consequently, the distrust of SMI can create the potential for damage to a brand if audiences are not receptive to communications and messaging. This study (n=351) shares insights and findings of the apparent distrust of SMI that were discovered during the data analysis phase of my dissertation (Berry, 2024a). The study examines levels of trust and distrust toward SMI in the United States according to various demographic characteristics of respondents, specifically, age, gender, income level, education level, and region of the United States. Chi square analysis of the variables and a predictive model of trust of SMI are presented. Finally, recommendations and suggestions for future research are discussed. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.02492&r= |
| By: | Foerster, Manuel; Hellmann, Tim; Vega-Redondo, Fernando |
| Abstract: | We set out a model of social media influencer marketing in which a firmmay hire influencers to inform consumers about an innovation. Influencersgenerate sales through purchases of their followers and followers' social networks and set prices for their endorsements. In turn, the firm decides whichinfluencers to hire, which story to convey via the influencers, and sets the retail price of the innovation. In equilibrium, influencers price according totheir marginal contribution to industry profits and increase consumers' willingnessto pay with their stories. In particular, under a weak condition itis the influencers with the most reactive followers who are hired and obtainpositive profits in equilibrium. Finally, we show that the firm may be betteroff if it could commit to hire fewer influencers. |
| Keywords: | Strategic Product Marketing; Social Media Influencer; Innovation; Social Networks; Bertrand Competition. |
| Date: | 2024–06–17 |
| URL: | https://d.repec.org/n?u=RePEc:cte:werepe:43985&r= |
| By: | Chiara Ferri |
| Abstract: | The entry of new technological infrastructures into the financial markets poses serious concerns about the misuse of the economic system for illicit purposes, such as money laundering and financing of terrorism. Although there are cases in which this connection has already been discovered by malicious actors, distributed ledger technologies can nevertheless represent a powerful tool at the disposal of competent authorities to trace illicit flows and to better monitor risks in financial markets. However, this possibility may go through an interdisciplinary analysis of the phenomena. The search for alternative systems to move funds, rather than the traditional financial intermediaries, such as banks, is not a new circumstance and not necessarily for criminal purposes. Nevertheless, some of the already-known value transfer systems may benefit from the use of distributed ledger technology and make their detection more difficult. The European institutions are discussing the needed legislative packages to enforce the current regulations and to extend their application to the crypto space, as well as the establishment of a new competent authority. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2405.18517&r= |
| By: | Berkouwer, Susanna; Biscaye, Pierre; Hsu, Eric; Kim, Oliver; Lee, Kenneth; Miguel, Edward; Wolfram, Catherine |
| Abstract: | In response to the Covid-19 crisis, 186 countries implemented direct cash transfers to households, and 181 introduced in-kind programs that lowered the cost of utilities such as electricity, water, transport, and mobile money. During times of crisis, do people prefer in-kind transfers or cash, and why? In this paper, we compare electricity transfers against a benchmark of cash transfers (mobile money) among 2000 rural and urban residents of Kenya with pre-paid electricity meter connections. We offer participants an incentivized choice between electricity transfers or mobile money, totaling approximately USD 10 to 15, and then implement their choice over three months. We generate three main findings. First, participants overwhelmingly prefer cash, with three-quarters of participants opting for mobile money even when offered electricity tokens with a cash value that is 40 percent higher, possibly due to the flexibility in expenditures or credit constraints. Second, despite relatively low baseline electricity consumption, preference for cash is slightly lower in rural areas, possibly due to higher transaction costs for purchasing electricity, lower mobile money penetration, or savings constraints. Third, electricity tokens transfers generate a larger increase in electricity consumption than equivalent cash transfers, suggesting a role for mental accounting; however, we estimate no impact of either electricity or cash transfers on a broad set of socioeconomic outcomes. These patterns suggest that mobile money transfers generate larger welfare gains than electricity credit, at least in settings with high mobile money penetration. |
| Keywords: | Economics, Applied Economics, Clinical Research, Development economics, Cash transfers, Electricity subsidies, Government programs, Utility subsidies, Kenya, Electrical and Electronic Engineering, Mechanical Engineering, Energy, Banking, finance and investment, Applied economics, Econometrics |
| Date: | 2023–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:agrebk:qt77q3w4sm&r= |
| By: | OECD |
| Abstract: | Child rights advocates, parents, governments, and children themselves are increasingly calling for digital safety by design, so that children can be protected online, and also benefit from positive digital experiences. However, the exact meaning of digital safety by design can be unclear. This report explores the concept, considering how it is addressed at international and national levels. Internationally, there are common calls for the proactive integration of safety measures into digital products and services, as well as for transparent, accountable and child-friendly service delivery. National laws prescribe practical tools and measures such as age assurance and accessible complaint mechanisms. Focusing on actions for digital service providers, the report suggests eight key components for digital safety by design for children, including practical tools, measures to foster a culture of safety, and harm mitigation strategies. These components are illustrated through case studies, highlighting a need for diverse and tailored approaches. |
| Keywords: | children safety online, digital safety |
| Date: | 2024–06–19 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaab:363-en&r= |
| By: | Banco de España (Banco de España) |
| Abstract: | This paper presents an analysis of recent developments in the accessibility of banking services in Spain, from the perspective of both supply (the in-person access points available) and demand (customer use and assessment). According to the results obtained, the following main conclusions can be drawn: i) The reduction in the number of bank branches between 2021 and 2022 was offset by the establishment of mobile branches in smaller municipalities and financial agents in larger municipalities. ii) Between 2021 and 2022, the number of municipalities without any in-person points of access to banking services was reduced by 167 (2.1% of municipalities and 0.13% of the population). iii) The percentage of municipalities without any in-person point of access to banking services decreased to a greater extent than in the case of other services, both those provided privately (shops and bars) and those with a certain component of public provision (health care and pharmacies). iv) According to the latest edition of the Study on Cash Use Habits (EHUE), referring to 2023, the use by customers of alternative channels to bank branches (financial agents, mobile branches, cashback and Correos Cash) is very limited, both in the case of the elderly and in the case of the population residing in municipalities without a stable branch. v) Customers surveyed in the EHUE perceive an appreciable increase in 2022 in the distance to the closest point of access to regular cash in municipalities without a stable bank branch. This apparent discrepancy between the behaviour of accessibility measures on the supply side – i)-iii) – and on the demand side – iv)-v) – could be explained by the fact that the greater availability of access points is a result of the implementation of new alternative channels, in a context in which customers still mostly use bank branches. These results highlight the importance of accompanying the deployment of alternative channels with actions to promote and facilitate their use by customers, as well as the need to assess the effectiveness of the different alternatives available. |
| Keywords: | accessibility, banking services, cash, rural areas. |
| JEL: | R51 I31 J11 E41 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:bde:opaper:2320e&r= |
| By: | John Lourenze Poquiz (King's Business School) |
| Keywords: | Welfare measurement, digital economy, free goods, National Accounts, hedonic regression. |
| JEL: | C13 C82 D60 E01 O47 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:anj:wpaper:044&r= |
| By: | Paul Beaumont; Huan Tang; Eric Vansteenberghe |
| Abstract: | Cet article examine l'impact de l'introduction de prêts non garantis juniors via les plateforme FinTech de crowdlending sur le marché du prêt aux petites entreprises. En utilisant des données administratives françaises, nous constatons que les emprunteurs FinTech connaissent une augmentation de 20% de leur crédit bancaire suite à l'origination du prêt FinTech. Nous établissons la causalité en utilisant un instrument dit shiftshare qui exploite l'exposition différentielle des entreprises aux exigences de garantie des banques. L'expansion du crédit ne se produit que lorsque les emprunteurs FinTech investissent dans de nouveaux actifs, et ces emprunteurs FinTech sont par la suite plus susceptibles de mettre en gage des garanties aux banques. Cela suggère que les entreprises utilisent les prêts FinTech pour acquérir des actifs qu'elles mettent ensuite en gage aux banques, augmentant ainsi leur capacité d'emprunt totale. |
| URL: | https://d.repec.org/n?u=RePEc:bfr:analys:157&r= |
| By: | Jonas Grangeray (CEPN - Centre d'Economie de l'Université Paris Nord - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord) |
| Abstract: | During the Great Depression, the 100% reserve banking proposal was put forward by several leading economists, including Henry Simons and Irving Fisher. The central idea of 100% reserve is to make money exogenous, under the control of the State. This article demonstrate, by comparing his writings with those of Fisher, that Simons understood the fundamental limit to 100% reserves : money is and will remain endogenous even after the reform. |
| Abstract: | Durant la Grande Dépression, la proposition de 100% réserves est mise en avant par une série d'économistes de premier plan, dont Henry Simons et Irving Fisher. L'idée centrale du 100% réserves est de rendre la monnaie exogène, sous le contrôle de l'État. On montre dans cet article, en confrontant ses écrits avec ceux de Fisher, que Simons avait compris la limite fondamentale posée au 100% réserves : la monnaie est et restera endogène même une fois la réforme mise en œuvre. |
| Keywords: | Henry Simons, Irving Fisher, 100% reserve banking, fractional-reserve banking, exogenous money, endogenous money, near money, velocity of money, 100% réserves, système bancaire à réserves fractionnaires, monnaie exogène, monnaie endogène, quasi-monnaies, vélocité de la monnaie, Henry Simons Irving Fisher 100% réserves système bancaire à réserves fractionnaires monnaie exogène monnaie endogène quasi-monnaie vélocité de la monnaie Henry Simons Irving Fisher 100% reserve banking fractional-reserve banking exogenous money endogenous money near money velocity of money JEL, quasi-monnaie, vélocité de la monnaie Henry Simons, velocity of money JEL |
| Date: | 2024–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04611718&r= |
| By: | Wei Wang; Haibo Wang |
| Abstract: | This study uses data from the BRICS stock market index, cryptocurrencies, and investor sentiment indicators from January 6, 2015, to June 29, 2023. BRICS nations emerge as pivotal representatives of emerging economies. This study employs a time-varying parameter vector autoregression model to unravel the intricate interdependence between traditional stock assets and the evolving landscape of cryptocurrencies. The analysis investigates spillover effects between BRICS stock markets and cryptocurrencies, revealing increasing interconnectedness during highly uncertain events like COVID-19, but no significant impact on major US stock market indices. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.07641&r= |
| By: | OECD |
| Abstract: | Measuring the various aspects of cybersecurity across countries is challenging, in part because the actors in the cybersecurity ecosystem often do not have the incentives to share key data. At the same time, people, firms and governments need to feel secure to communicate online and use Internet-based services. This statistical report provides an overview of how cybersecurity is being measured across a variety of data sources and using different methodological approaches. Beginning with a checklist of measurement considerations, the report then discusses existing data from official and non-official sources, identifying when each data source is most useful. The report then provides two proofs of concepts for measuring uncertainty related to cyber risks, or “cybersecurity uncertainty”. Measuring such uncertainty can complement existing statistics and help anticipate emerging cybersecurity trends, develop more targeted cybersecurity awareness programmes, and promote a more secure and resilient digital ecosystem. |
| Keywords: | cybersecurity, digital security |
| Date: | 2024–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaab:366-en&r= |
| By: | Ayush Singh; Anshu K. Jha; Amit N. Kumar |
| Abstract: | In this paper, our focus lies on the Merton's jump diffusion model, employing jump processes characterized by the compound Poisson process. Our primary objective is to forecast the drift and volatility of the model using a variety of methodologies. We adopt an approach that involves implementing different drift, volatility, and jump terms within the model through various machine learning techniques, traditional methods, and statistical methods on price-volume data. Additionally, we introduce a path-dependent Monte Carlo simulation to model cryptocurrency prices, taking into account the volatility and unexpected jumps in prices. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.12988&r= |
| By: | Yujuan Qiu |
| Abstract: | This paper investigates some indicators of financial development in select countries with currency board systems and raises some questions about the connection between financial development and growth in currency board systems. Most of those cases are long past episodes of what we would now call emerging markets. However, the paper also looks at Hong Kong, the currency board system that is one of the world's largest and most advanced financial markets. The global financial crisis of 2008 09 created doubts about the efficiency of financial markets in advanced economies, including in Hong Kong, and unsettled the previous consensus that a large financial sector would be more stable than a smaller one. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.00472&r= |