The COVID-19 Pandemic's Impact on Indonesia's Electronic Retail Payment Transactions

Abstract

This research aims to analyze the differences in the number of cash, shop, intrabank, interbank, and electronic transactions in normal conditions and at the time of the COVID-19 pandemic, and see if there is an increase or decrease in the number of transactions during the pandemic in 2020. It was an empirical study in which the survey was conducted using secondary data between January to March 2019 and January to March 2020, which collected from the Indonesia Central Bank (BI) Statistics Data and Financial Services Authority (OJK) Statistics Data. The data collected were analyzed with paired sample t-tests (95% significance level) by presenting several factors influencing customer perception. The research finds out that there is a statistically significant difference between the numbers of Electronic money transactions before and after COVID-19, while there are no statistically significant differences for other electronic retail payment transaction instruments, such as credit cards, debit cards, intra transfers and interbank, electronic money. The number of cash and shop transactions during the pandemic experienced a slight increase, while the number of intrabank and interbank transactions decreased during the pandemic when compared to normal conditions last year. A significant difference occurred in the number of electronic money transactions that experienced an increase of 2,117%.

The Impact of Covid-19 Pandemic on Electronic Money Transactions

“…These factors will eventually lead to an increase in E-Money transactions. This discovery is also in line with Trisnowati et al, [26] previous research, they discovered that E-Money transactions changed statistically significantly before and after the Covid-19 epidemic. Furthermore, Tut [4] concludes that mobile banking agents, transaction values, and volume have all increased.…”

The fintech transformation of banking: Governance dynamics and socio-economic outcomes in spatial contexts

“…In the South and countries with less developed or absent bank systems, direct effects are more profound, involving the substitution of traditional banking, the provision of basic financial services and inclusion into GVCs. The above-referred downside effects also turn out to be fiercer than in the North (Bhagat & Roderick, 2020;Trisnowati et al, 2020).…”

“…In Global South, fintech businesses enable financial inclusion, however, with varying degrees in different countries (Bhagat & Roderick, 2020;Coffie et al, 2020;Kim, 2020). At the same time, customers lacking ICT-Internet skills and resources suffer exclusion (Trisnowati et al, 2020). These processes vary depending on the context, e.g., they focus on the change from cash-based to a cashless society in the Chinese market, transfer of remittances in African refugee camps, or organization of payment for the unbanked in Brazil (Iman, 2018;Jagtiani & Lemieux, 2018;Kim, 2020).…”

Augmentation of Digital Financial Services in the Pandemic: A Micro Level Study in Delhi

“…The growth in the use of mobile or online banking after pandemic was very minor as 81.3 per cent of the respondents were using online or mobile banking before the pandemic itself. Another study by Trisnowati et al (2020) found that the pandemic increased the number of cash transactions and decreased the number of interbank and intrabank transactions in comparison to the standard times. However, there was discernible difference in the electronic money transactions in the pre and post COVID period.…”