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on Payment Systems and Financial Technology |
| By: | Lacaza, Rutcher M.; Pesa, Nikka C.; Agner, Mary Grace R. |
| Abstract: | This paper examines how digital financial platform engagement influences financial inclusion in the Philippines and explores how financial institutions are deploying artificial intelligence (AI) in enhancing these platforms. It combines nationally representative data from the World Bank Global Findex (2021), institutional indicators from the International Monetary Fund (IMF) Financial Access Survey (2016–2024), and qualitative insights from financial institutions and policy experts. From the demand side, a Digital Financial Engagement Index was constructed based on individuals’ usage of mobile payments, online banking, and digital financial services. Results reveal that digital financial engagement is a strong and consistent determinant of financial inclusion: individuals who actively use digital financial platforms are significantly more likely to own and use formal financial accounts. However, several barriers persist. The lack of money, high perceived costs, documentation issues, and low trust remain key constraints among Filipino adults, particularly among low-income groups. From the supply side, institutional data from the IMF Financial Access Survey (2016–2024) and insights from Key Informant Interviews (KIIs) reveal that financial infrastructure has expanded moderately. While AI adoption remains nascent and largely concentrated among large, digitally advanced financial institutions, AI technologies such as fraud detection, credit scoring, and chatbots are increasingly embedded in the digital platforms where consumers transact. In contrast, smaller cooperatives and savings and loan associations continue to face structural and resource-related barriers to adoption. The convergence of demand- and supply-side evidence highlights that digital financial engagement serves both as a driver and an indicator of financial inclusion, while AI adoption within these platforms has the potential to further enhance access, security, and user experience. Overall, this study provides new empirical evidence that digital financial engagement significantly enhances financial inclusion in the Philippines. The study also documents how financial institutions are strategically deploying AI within these digital platforms, providing insights for responsible AI adoption that can support inclusive financial services. By strengthening digital infrastructure, promoting financial and digital literacy, and ensuring responsible AI adoption, the Philippines can transform digital financial platforms into a true catalyst for inclusive and sustainable growth. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | digital financial engagement, artificial intelligence, financial inclusion, digital platforms, Philippines |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2026-03 |
| By: | Zamora-Pérez, Alejandro |
| Abstract: | Using a survey of 39, 507 adults in 17 euro-area countries, I find that crypto-asset owners and the niche subgroup of payers have distinct profiles. Owners – typically younger, male, and financially active – exhibit mixed preferences, valuing both cash-like privacy and card-like speed. Crypto payers display a cash-centric profile, seeking to replicate physical cash’s privacy and ease of use in digital form. While standard specifications show that holding cash reserves is positively associated with owning crypto – challenging the view that early adopters reject cash –, a multiple-instrument IV strategy exploiting pandemic-related payment shocks reveals a causal sign reversal: for compliers, building precautionary cash buffers reduces the probability of crypto ownership under uncertainty. These findings (1) explain the ownership-payment wedge as driven by user profiles beyond merchant-acceptance frictions, (2) show crypto and cash act as portfolio complements but substitutes under stress, and (3) may inform crypto regulation and CBDC design. JEL Classification: E41, E42, E58, G11, O33 |
| Keywords: | digital assets, household finance, money demand, payment choice, store of value |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20263215 |
| By: | Mark L. Egan; Gregor Matvos; Amit Seru; Lulu Wang; Vincent Yao |
| Abstract: | We use novel data on the composition and cost of payments across U.S. merchants to quantify consumer redistribution in the payment system. Cards charge interchange fees to merchants to fund consumer rewards. When merchants raise prices for all consumers in response to these costs, users of low-cost payment methods (e.g., cash and debit) cross-subsidize high-reward credit card users who shop at the same merchant. This standard mechanism implicitly assumes that consumers using different payment methods shop at the same merchants and that merchants face similar fees. We show instead that incidence depends on the joint distribution of payment choices across merchants. We document two key forces that shape redistribution. First, consumer sorting—where consumers who use different payment methods shop at different merchants—limits the exposure of cash and debit users to the effects of high interchange fees. Second, interchange fees vary across merchants; where users of different payment methods overlap, such as at large grocery stores, fees are lower due to sector discounts and private negotiations. We embed these forces in a sufficient-statistics framework that maps observed heterogeneity directly into redistribution. We estimate that interchange fees transfer approximately $30 billion every year from cash and debit users to credit card users. Consumer sorting and merchant fee heterogeneity reduce the magnitude of this regressive transfer by 25%, but do not eliminate it. Finally, we show that both the Durbin Amendment and the rise of premium credit cards have been regressive, highlighting how policy and innovation can reshape the incidence of platform fees. |
| JEL: | D14 E42 G0 G2 G5 L11 L81 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35067 |
| By: | Vera Lubbersen |
| Abstract: | Payment card markets are globally dominated by a few large card networks, which give significant rebates to issuing banks. Policy makers are concerned about rising merchant fees and the overreliance on these networks’ payment services. A common assumption is that profitable entry is blockaded by the entry costs to set up the payment system and network, resulting in a monopolistic or duopolistic market structure. The question analyzed in this paper is under which conditions a card network sets rebates at a higher level such that competitors cannot profitably enter the market. Deterrence becomes more profitable for a large card network when transaction benefits increase - especially if issuing banks pass rebates through to cardholders. At the same time, entry becomes more blockaded if issuing banks face costs to switch their card issuance to a different card network - indicating that large card networks may use rebates to increase switching costs. These lock-in effects explain why domestic card networks are pushed aside and new card networks struggle to gain ground and may have important implications for payment regulation. |
| Keywords: | Payment cards; Rebates; Entry deterrence; Interchange fee; Card networks |
| JEL: | L12 L13 L14 L20 L21 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:dnb:dnbwpp:856 |
| By: | Giulia Nevi; Olivier Nicolas (LARSH - Laboratoire de Recherche Sociétés & Humanités - UPHF - Université Polytechnique Hauts-de-France - INSA Hauts-De-France - INSA Institut National des Sciences Appliquées Hauts-de-France - INSA - Institut National des Sciences Appliquées); Luca Dezi; Gian Luca Gregori |
| Abstract: | Purpose -Often associated to the cryptocurrency markets and to future metaverses, the NFT market and its determinants must be investigated on their own. Many determinants of consumer behaviors with NFTs remain undetermined. Besides early adopters, a significant population of followers has yet to start purchasing NFTs. This paper aims to explore identity-related determinants of followers' engagement with NFTs around the personal and social identity theories as well as identity projects.Design/methodology/approach -This study is based on 34 semistructured interviews with respondents from France, Italy and India who self-identify as NFT followers. The data were analyzed using a simplified version of the Gioia method to explore motivations and identity expression through NFTs. The theoretical framework is grounded in personal and social identity theory and identity projects.Findings -The authors detail specific features of NFTs followers compared to fans or purchasers. They share purchasers and fans economic and technological perceptions associated to NFTs, but their emotions toward NFTs are contrasted. They give great importance to communities but are much concerned by potential dark sides. If they do not purchase NFTs so far, they incorporate them into their identity process and identity projects, even if such projects appear rather unstructured, as are their self-presentations.Research limitations/implications -Cultural replication as other methodological approaches as netnography and longitudinal is needed to disentangle both NFTs as identity issues. This research extends the understanding of dimensions that could influence the adoption and diffusion of a new technology by investigating NFTs followers.Practical implications -Managers could apply the investigated dimensions to structure strategies to convert NFTs followers and optimize their impact on NFT business.Originality/value -To the best of the authors' knowledge, this is one of the first studies to address NFTs from a deep perspective of followers of a digital consumption phenomenon. It offers insightful reflections on |
| Keywords: | Non-fungible tokens (NFTs) Digital consumption Technology adoption Identity projects Online communities Innovation diffusion Sustainability, Non-fungible tokens (NFTs), Digital consumption, Technology adoption, Identity projects, Online communities, Innovation diffusion, Sustainability |
| Date: | 2026–02–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05577144 |
| By: | Bindseil, Ulrich |
| Abstract: | The retail payment industry is significant, affects every citizen and is a very precondition for a modern society based on the division of labor. It is characterized by two-sidedness, strong network effects, high fixed costs, high concentration and high profitability of successful firms, layering, path dependencies and stability of inferior equilibria. Alternative retail payment architectures may have potentially relatively similar social welfare performances, but vastly different implications on different industry stakeholders. The specificities of the retail payment industry accentuate the incentives to influence public opinion and lawmakers, including through "alternative" narratives. The public discourse on retail payment architecture will be confusing for several reasons: (i) technical complexity of retail payment architectures for non-experts; (ii) expertise concentrated with those having vested interests and who will thus always provide biased explanations and opinion; (iii) significant financial fire power of successful incumbent firms to promote their narratives; (iv) incentives to promote projects "out of the money" with exaggerated arguments, while truly promising projects may be kept secret for long; (v) long deployment times and uncertainty on ultimate implementation and use. We discuss the various perspectives of key retail payment industry stakeholders. For each, we identify their main interest, key preferred and feared narratives. We discuss in more depth specific issues relating to the current discourse around retail CBDC. We draw lessons from a public policy perspective. |
| Keywords: | Monetary architecture, means of payment, network industries, public discourse, vested interests, central bank money |
| JEL: | E42 E58 G21 G23 G28 L11 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:339999 |
| By: | Olivier Nicolas (LARSH - Laboratoire de Recherche Sociétés & Humanités - UPHF - Université Polytechnique Hauts-de-France - INSA Hauts-De-France - INSA Institut National des Sciences Appliquées Hauts-de-France - INSA - Institut National des Sciences Appliquées) |
| Abstract: | As e-commerce has grown, so have new digital payment methods. Although they play a significant role in the finalization of online shopping baskets, an important moment of truth in the customer experience, marketing research has paid little attention to the consumer experience with these digital forms of money. And the framework for analyzing money is no longer entirely appropriate. Drawing on the fields of perceived value and experience from marketing research, we explore this field of research by measuring the value of the digital experience using existing measurement constructs. Our results demonstrate the value of further investigating the sources of perceived value of experiences involving digital monetary forms. They enable us to identify managerial avenues and theoretical perspectives around the typicality of digital monetary forms and monetary means in consumption. |
| Keywords: | money, digital marketing, ecommerce, experience, value, experience value, typicality Is paying |
| Date: | 2024–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05577273 |
| By: | König, Jörg; Meyer, Tim |
| Abstract: | Plans to introduce a digital euro are becoming increasingly concrete. The European Parliament is expected to vote on the proposal in May 2026, with the European legislative process set to be completed by the end of the year. However, the digital euro is likely to be primarily a prestige project of European institutions, whose benefits are difficult to discern. Its introduction would, with a high degree of probability, entail distortions of competition and risks to the financial system. It could also lead to a gradual displacement of cash, quietly driven forward by the various interested parties. Contrary to the expectations of its proponents, the digital euro is also unlikely to significantly foster technological progress or strengthen the euro's role as a global reserve currency. For this reason, an open-ended process without time pressure is needed-one that allows for the possibility of ultimately deciding against the introduction of a digital euro. Instead, alternative options should be incorporated into the decision-making process. In addition to the possibility of entrusting the ECB with the provision of digital infrastructure, priority should be given to private initiatives in the development of digital payment services. One point appears clear: Europe's shortcomings and dependencies in digital payment systems cannot be resolved through a more or less state-driven digital currency, but rather require trust in market-based processes and openness to private innovation. |
| Abstract: | Die Pläne zur Einführung eines digitalen Euros werden immer konkreter. Im Mai 2026 soll das Europäische Parlament über das Vorhaben abstimmen. Bis Ende des Jahres soll der europäische Gesetzgebungsprozess abgeschlossen sein. Der digitale Euro dürfte jedoch vor allem ein Prestigeprojekt europäischer Institutionen sein, dessen Nutzen nur schwer ersichtlich ist. Die Einführung des digitalen Euros hätte mit hoher Wahrscheinlichkeit Wettbewerbsverzerrungen und Risiken für das Finanzsystem zur Folge. Zudem könnte sie zu einer sukzessiven Verdrängung des Bargelds führen, die diskret von den unterschiedlichen interessierten Seiten vorangetrieben wird. Entgegen der Hoffnung seiner Befürworter dürfte der digitale Euro zudem kaum dazu in der Lage sein, technologischen Fortschritt zu befördern oder die Rolle des Euros als globale Reservewährung zu stärken. Deshalb bedarf es eines ergebnisoffenen Prozesses ohne Zeitdruck, an dessen Ende auch die Entscheidung stehen kann, den digitalen Euro nicht einzuführen. Vielmehr sollten andere Optionen in den Entscheidungsprozess einbezogen werden: Neben der Möglichkeit, der EZB die Bereitstellung der digitalen Infrastruktur anzuvertrauen, sollten private Initiativen Vorrang bei der Entwicklung digitaler Zahlungsdienstleistungen erhalten. Denn eines scheint offensichtlich: Europas Rückstände und Abhängigkeiten bei digitalen Zahlungssystemen lassen sich nicht durch eine mehr oder weniger staatliche Digitalwährung beheben, sondern erfordern Vertrauen in marktwirtschaftliche Prozesse und Offenheit gegenüber privaten Innovationen. |
| Keywords: | Bargeld, Digitalisierung, Europa, Finanzmärkte |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:smwpos:340005 |
| By: | Maxime L. D. Nicolas; Fran\c{c}ois Sicard; Marion Laboure; Zixin Sun; Anah\'i Rodr\'iguez-Mart\'inez |
| Abstract: | This study investigates the transmission of monetary policy narratives to Bitcoin prices, distinguishing the impact of ex-ante expectations from ex-post interest rate implementation. We introduce a high-frequency Monetary Policy Expectations (MPE) index, using a Large Language Model (LLM)-based classification of 118, 000+ market messages to achieve a precise hawkish/dovish decomposition. Results from a framework combining Long Short-Term Memory (LSTM) networks with SHapley Additive exPlanations (SHAP) indicate that Bitcoin functions as a sensitive barometer of central bank signaling; specifically, hawkish narratives consistently trigger negative price responses independently of actual Federal Funds Rate adjustments. We demonstrate that the MPE index Granger-causes Bitcoin returns at short-to-medium horizons, establishing linear predictive causality, while the LSTM-SHAP framework reveals pronounced non-linear, macroeconomic regime-dependent interactions. These findings highlight Bitcoin's structural sensitivity to global monetary discourse, establishing LLM-derived sentiment as a potent leading macroeconomic indicator for the digital asset landscape. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2604.08825 |
| By: | Xiaolan Zhou (School of Economics, Shandong University); Yasuyuki Sawada (Asian Development Bank Institute and Faculty of Economics, University of Tokyo); Elaine S. Tan (Economic Research and Development Impact Department, Asian Development Bank) |
| Abstract: | Using proprietary data from Alibaba, we estimate a structural model for the digital food delivery platform and quantify the welfare effects of shop-type strategies. We find that shops with higher net gross merchandise value (GMV), multi-app stores, and chain stores exhibit larger cross-network effects on both consumers and couriers. These types of shops are more effective in driving the expansion of the platform’s market size and contribute more significantly to the platform’s net GMV. The magnitudes of these effects are amplified in a dynamic setting due to the positive direct network effects at the platform level. Specifically, platforms' strategy of prioritizing top merchants over supporting a multitude of mid-tier merchants proves more effective in the fresh food sector than in the cooked food sectors characterized by greater product heterogeneity. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:tky:fseres:2026cf1270 |
| By: | Markus Lill (LMU Munich); Nastasia Gallitz (LMU Munich); Lucas Stich (University of Wuerzburg); Martin Spann (LMU Munich) |
| Abstract: | Platform endorsement badges (e.g., Amazon's Choice) are widely believed to shape consumer decisions, yet their effectiveness in complex retail environments---where endorsements compete with rankings, ratings, and other signals---remains not well understood. This article examines Amazon's product-level endorsements using a multi-method approach combining (1) a 50-day large-scale audit of more than 200, 000 search results spanning over 90, 000 products and (2) a lab-in-the-field experiment that manipulates badge visibility and placement in consumers' natural shopping context. The audit reveals that endorsements are rare (~1.3% of products) and disproportionately assigned to products with lower prices, higher ratings, and those sold or fulfilled by Amazon; receiving a badge is associated with greater search visibility and improved sales performance. The experiment shows that displaying the badge tends to increase click-through and add-to-cart likelihoods, whereas reassigning or masking it tends to reduce these behaviors; however, these effects---while economically meaningful---are estimated with uncertainty, consistent with a multi-cue environment in which endorsement competes with other signals such as search rank and Prime eligibility. Together, the findings indicate that platform endorsement badges shape consumer search and choice behavior even in information-rich retail settings. Implications are discussed for platform design, seller strategy, and regulatory oversight. |
| Keywords: | platform endorsements; consumer decision-making; digtial platforms; e-commerce experimentation; |
| JEL: | D12 D83 L86 M31 |
| Date: | 2026–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:rco:dpaper:569 |
| By: | Lily Gordon; Lee Seltzer |
| Abstract: | Many modern banking organizations are highly complex. A “bank” is often a larger structure made up of distinct entities, each subject to different regulatory, supervisory, and reporting requirements. For researchers and policymakers, understanding how these institutions are structured and how they have evolved over time is essential. In this post, we illustrate what a modern financial holding company looks like in practice, document how banks’ organizational structures have changed over time, and explain why these details matter for conducting accurate analyses of the financial system. |
| Keywords: | bank regulation; bank supervision; financial institutions |
| JEL: | G20 G28 |
| Date: | 2026–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:102978 |
| By: | Valérie Lelièvre (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jean-Noël Ory (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine) |
| Abstract: | L'expertise universitaire, l'exigence journalistique https://theconversation.com/entre-capital-risque-et-capital-patient-la-strategie-des-banques-cooperatives-dans-les-fintech-275571 Entre les banques sociétés anonymes et les banques coopératives, la différence concerne notamment la structure du capital et, ce faisant, la gouvernance. Cela a-t-il un impact sur leur manière d'aborder les fintech ? Quelles approches ont développé les banques coopératives pour devenir des investisseurs pas comme les autres ? Pour faire face à la montée en puissance des fintech, les banques françaises explorent de nouvelles formes d'investissement. L'enjeu est de s'adapter au contexte de transformation numérique, où l'offre innovante restructure la demande de services financiers. Les banques coopératives se distinguent en entrant très tôt au capital de jeunes start-up de la finance, parfois dès la phase d'incubation. Cette stratégie risquée leur permet d'apprendre, de tester des technologies et d'ajuster leurs choix dans le temps. Elle les rapproche d'une logique de capital-risque. Si cette logique est a priori en contradiction avec le modèle coopératif originel, qu'elles revendiquent comme davantage ancré sur la relation de long terme et la proximité avec la clientèle, elle constitue néanmoins une réponse cohérente. Les spécificités du capital des banques coopératives ne les ont pas empêchées d'investir dans des start-up du secteur financier. Mais ont-elles mis en oeuvre des stratégies d'investissement particulières ? Edi Kurniawan/Unsplash Entre capital-risque et capital patient : la stratégie des banques coopératives dans les fintech. |
| Keywords: | Banques, Start-up, Economie, Fintech, Capital-investissement, Entreprise(s), Finance |
| Date: | 2026–03–16 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05583477 |
| By: | Julianne Baer |
| Abstract: | The interchange, or 'swipe, ' fees collected by U.S. banks grew to $66 billion in 2025 as debit and credit card purchase volumes and values increased. |
| Keywords: | interchange fees; swipe fees; banking analytics |
| Date: | 2026–04–09 |
| URL: | https://d.repec.org/n?u=RePEc:fip:l00001:103019 |
| By: | Shailly Gupta (Indian Council for Research on International Economic Relations (ICRIER)); Mehak Aggarwal |
| Abstract: | ICRIER, in partnership with the University of Queensland (UQ), Australia, and the ICRIER Centre for Internet and Digital Economy (IPCIDE) hosted a hybrid workshop, "Transformation of Health Systems through Digital Public Infrastructure" on 09 January 2026 in New Delhi. 42 experts representing government, the private sector, international organisations and civil society gathered to engage in a full-day dialogue (please see Annexure 2). The case in focus was the Ayushman Bharat Digital Mission (ABDM) to gain deeper insights into the functioning of this flagship DPI-health initiative of India.This workshop has been convened by ICRIER in partnership with the University of Queensland (UQ) as part of an Australia-India Cyber and Critical Technology Partnership (AICCTP) project titled, "A Paradigmatic Shift in Public Service Delivery: Inclusive, Efficient and Secure DPI", funded by the Department of Foreign Affairs and Trade (DFAT), Australia. This workshop was supported by the Gates Foundation. |
| Keywords: | Health System, Digital Infrastructure, IPCIDE, icrier |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bdc:report:26-r-12 |