The Impact of a Cashless Payment System on Inflation

Muslikhati, Muslikhati; Aprilianto, Fitrian

doi:10.22219/jep.v21i02.20885

Cited by 2 publications

(1 citation statement)

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“…On the other hand, lower interest rates can encourage individuals and businesses to opt for cashless payment methods as the cost of borrowing decreases, making digital transactions more attractive, researchers found that electronic money usage has a significant negative effect on inflation, while debit card usage has a significant positive impact. Credit card usage showed an insignificant negative effect, and the interest rate variable had a significant positive impact (Muslikhati & Aprilianto, 2022). Cashless payment records play a crucial role in shaping a firm's access to financing.…”

Section: Literature Reviewmentioning

confidence: 97%

Towards a Digital Revolution: Investigating the Impact of GDP, Tax Collection, and Interest Rates on Cashless Economy in India

Zargar,

Niroula,

Fatimah

et al. 2023

J. Pop. Dev.

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The rapid advancement of digital technologies have propelled economies worldwide towards a transformative shift to cashless transactions. In the context of India's ambitious journey towards a digital revolution, this research aims to investigate the impact of Gross Domestic Product (GDP), tax collection, and interest rates on the adoption and usage of a cashless economy in India. The objectives of the study were to explore the relationships between GDP and the cashless economy, tax collection and the cashless economy, and interest rates and the cashless economy. Three hypotheses were formulated to test these relationships, positing that as GDP, tax collection, and interest rates increase, the adoption and usage of cashless payment methods in India. Using OLS multiple regression analysis through STATA software, data from the years 2001 to 2020 were meticulously analyzed. The research findings revealed a significant positive correlation between GDP and the cashless economy, indicating that as India's economy grows, there is an increased inclination towards digital payment methods. Similarly, effective tax collection initiatives were found to play a pivotal role in promoting formal financial transactions and driving the adoption of cashless payments in the country. However, contrary to the hypothesis, the study results showed that the impact of interest rates on cashless payment adoption was not as prominent as anticipated. This research contributes valuable insights into the dynamics of India's digital revolution, emphasizing the role of key macroeconomic factors in shaping the cashless ecosystem. The findings offer strategic implications for policymakers, financial institutions, and businesses in devising evidence-based strategies to accelerate India's transition towards a robust and inclusive cashless economy.

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Section: Literature Reviewmentioning

confidence: 97%

Towards a Digital Revolution: Investigating the Impact of GDP, Tax Collection, and Interest Rates on Cashless Economy in India

Zargar,

Niroula,

Fatimah

et al. 2023

J. Pop. Dev.

View full text Add to dashboard Cite

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The impact of a cashless electronic payment system on hyperinflation in Bangladesh

Mukta,

Rayhan,

Faruq

2024

MIST

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The increase of electronic payment methods, or payments that don't include the use of currency has transformed financial transactions. Non-cash transactions are convenient, simple, and fast, among other benefits. Furthermore, payments without cash have an effect on Bangladesh's currency management. The practicality that comes with using transactions without cash causes the velocity of money to increase. The society has seen a decline in payments in cash, yet the velocity of currency causes an intense pace when transactions without cash are used. It is thought that increased money transmission capacity will have hyperinflation implications. The purpose of this study is to ascertain how the cashless payment method affects hyperinflation. This research utilized an analytical approach and additional information from the beginning of 2021 to the end of 2023 that had been collected through Bangladesh Bank using verification methodologies. Multiple linear regression analysis is the process of research. The findings indicated that the factors related to digital currency experienced significant adverse effects, the factors related to debit cards, credit cards, online banking, or mobile banking had a major beneficial effect, the parameters related to credit cards had a meaningless unfavourable impact, and the variables related to rates of interest had an important beneficial effect.

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The Impact of a Cashless Payment System on Inflation

Cited by 2 publications

References 23 publications

Towards a Digital Revolution: Investigating the Impact of GDP, Tax Collection, and Interest Rates on Cashless Economy in India

Towards a Digital Revolution: Investigating the Impact of GDP, Tax Collection, and Interest Rates on Cashless Economy in India

The impact of a cashless electronic payment system on hyperinflation in Bangladesh

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