The Impact of Covid-19 Pandemic on Electronic Money Transactions

Abstract

The rapid technological development has influenced Indonesia's payment system. Due to the pandemic, people tend to seek cashless payment methods to limit physical contact. By using monthly time-series data from Bank Indonesia and Yahoo finance website during 2015-2020, to investigate the influence of the Covid-19 epidemic on E-Money transactions in Indonesia, this study uses the Mann-Whitney U test and Ordinary Least Square (OLS) regression methods. The findings reveal that before and after the application of PSBB in Indonesia, the volume and nominal value of E-Money transactions were significantly different. Moreover, Covid-19 correlates positively with the nominal value of E-Money. Inflation negatively correlates with E-Money, whereas the stock market has no impact on E-Money.