An Experiment

We conduct an incentivized experiment to test whether the willingness to pay is higher for debit cards compared to cash for three consumer products. Our findings support this conjecture also after controlling for cash availability, spending type, price familiarity and consumption habits of the products. The evidence thus suggests that different representations of money matters for consumer behavior

Does millennials have an investment interest? theory of planned behaviour perspective

This study aims to determine the effect of attitudes, subjective norms, and perceived behavioral control of interest in investing. This research use theory of planned behavior to explain how behavior is formed through attitudes, subjective norms, and perceived behavioral control in taking investment decision. This research uses online survey data collection methods. Sampling uses the convenient sampling method. Data (questionnaire) which can be used as many as 100 data and using multiple regression analysis as the test tool. The results showed that the attitude variable has not a significant effect towards investing interest in the capital market, while subjective and perceived norms behavioral control has influenced investment interest in the capital market.  Based on the research findings, it is advisable to use persuasion that emphasizes the involvement of those closest to potential investors. In addition, seminars organized by IDX and the government will greatly help increase investor knowledge, thereby increasing one's investment power control

Готівка означає контроль: Емоції і розробка процесу оплати

Purpose – to investigate reasons and conditions impacting payment preferences. Design/Method/Approach. In this exploratory study, we apply the Implicit Association Test in order to investigate whether the prejudice of the population of some countries such as Germany preferring cash holds. Findings. Cash payments still play a major role in a number of countries although other payment options, namely card payments, are promoted heavily.  We discover that the type of payment and the level of control are implicitly associated. We manipulate the emotions of fear and joy. The relationship changes when participants experience fear, whereas emotion of joy does not produce statistically significant effects. Practical implications. The results have major implications for the design of payment processes. Originality/Value. Our study helps explain preferences with regard to payment types as well as predict preferences as a response to scary or joyful events. Research limitations/Future research. Generalizability is limited. Future research can focus on other emotions and types of payment (e.g., NFC – based payments). Paper type – empirical.Цель работы – определить причины и условия, влияющие на предпочтения касательно способа оплаты. Дизайн/Метод/План исследования. Применён тест подсознательных ассоциаций, чтобы выяснить, предпочитает ли население некоторых стран, например, Германии, наличные деньги. Результаты исследования. Платежи наличными по-прежнему играют важную роль в ряде стран, хотя другие способы оплаты, такие как карточные платежи, также активно продвигаются. Обнаружено, что тип оплаты и уровень контроля подсознательно связаны. Проведено манипуляцию эмоций страха и радости и выяснено, что подсознательные связи изменились, когда участники испытывали страх, тогда как эмоция радости не принесла статистически значимых эффектов. Практическое значение исследование. Результаты имеют большое значение для разработки процессов оплаты. Оригинальность/Ценность/Научная новизна исследование. Это исследование помогает объяснить предпочтения в отношении типов платежей, а также предсказать их как реакцию на пугающие или радостные события. Ограничения исследования/Перспективы дальнейших исследований. Обобщенность результатов ограничена. Будущие исследования могут сосредоточиться на других эмоциях и типах оплаты (например, NFC). Тип статьи – эмпирический. .Мета роботи – визначити причини і умови, що впливають на надання переваги певному способу оплати. Дизайн/Метод/План дослідження. Застосовано тест підсвідомих асоціацій, щоб з'ясувати, чи надає перевагу населення деяких країн, наприклад Німеччини, готівці. Результати дослідження. Платежі готівкою, як і раніше, відіграють важливу роль в ряді країн, хоча інші способи оплати, такі як карткові платежі, також активно просуваються. Виявлено, що тип оплати та рівень контролю підсвідомо пов'язані. Проведено маніпуляцію емоцій страху і радості та виявлено, що підсвідомі зв'язки змінилися, коли учасники відчували страх, тоді як емоція радості не принесла статистично значущих ефектів. Практичне значення дослідження. Результати мають велике значення для розробки процесів оплати. Оригінальність/Цінність/Наукова новизна дослідження. Це дослідження допомагає пояснити надання переваг певним типам платежів, а також передбачити їх як реакцію на радісні події або ті, що лякають. Обмеження дослідження/Перспективи подальших досліджень. Узагальненість результатів обмежена. Майбутні дослідження можуть зосередитися на інших емоціях і типах оплати (наприклад, NFC). Тип статті – емпіричний

Perceived value in payment modes: cognitive and affective value among Brazilian consumers

Consumers have been found to hold certain perceptions on Payment Modes (PMs) such as cash, credit or debit card, or digital payments, which will then influence their spending and purchasing behavior (e.g., the type, value and amount of purchased goods). Increasing attention has been devoted to this phenomenon. Despite the extensive body of research on the subjectivity underlying PMs and subsequent impact on consumers’ decision-making process, contradictory findings have been reported. Moreover, a scale to assess consumers held perceptions of PMs is still lacking. This study focuses on the concept of consumer perception of PMs. We draw on the marketing literature on payments and on two well-accepted theoretical frameworks - the Cognitive-Affective Behavioral Paradigm and the Consumption Value Theory - to put forward three specific hypotheses on the cognitive and affective value perceived by consumers. We focus on what has been classified as the ‘most traditional’ and ‘more innovative’ PMs, i.e., cash and digital payments. The aim of this project is twofold: first, to develop a measurement scale for measuring consumers perceived value of PMs, and second, we show how traditional PMs are less valued by consumers than more innovative ones. The suggested scale is an extended and adapted version of PERVAL, a well-established scale for assessing the value of goods and services. The scale was validated with a sample data of 400 Brazilian consumers employing a confirmatory factor analysis. The suggested hypothesis were tested with the same database, using a mean comparison model via multi-linear regression. Results show that consumers perceive cash having the lower cognitive value when compared to other PMs, and digital holding the higher affective value. Also, digital was found having the highest overall perceived value, also leading to the most positive attitude regarding PMs. This study contributes to the literature, first by providing a consumer perceived value measurement scale for PM scale which considers recent PMs and the cognitive and affective dimensions. And second, we show that consumers perceive PM underlying value differently, perceiving digital PM as the one which results in higher value. This is expected to affect their decision-making. The research also provides managers and the payment industry with a clearer understanding of the differences in perceived value between different PMs, reflecting insights on the strategy regarding offered payment experiences for different types of purchases, as well as for the development of new PMs

Mental Accounting Experiment: Mode of Payment Effect on Treating Money

This study examines the argument of mental accounting theory that individuals will behave differently in treating money. More specifically, this study empirically tests whether the difference in payment mode, cash and debit cards, will affect the amount of money spent by individuals when shopping and donation. The data were collected through a laboratory experimental design involving 76 female students from Muhammadiyah Boarding School and Pondok Pesantren Baitussalam Yogyakarta. Using MANOVA as the analysis tool, the results showed that the mode of payment did not affect the amount of money for shopping, but it affected the amount of donation. Subjects who used a debit card show an average number of donations that were larger compared to the subjects in the cash group. The results implied that debit card users, especially students, in this case, are not proven to behave more consumptively as predicted by the theory. While the positive impact is that debit cards can be a means for students to do more charity through donations. Thus, these results are in line with the objective of a cashless society program launched by Bank Indonesia. The important thing that should not be ignored in Less Cash Society programs at educational institutions is the policy of limiting the amount of money students can spend

Order Creates Value: Personality, Attitudinal and Behavioral Factors of Financial Vulnerability

El orden crea valor: Factores de personalidad, actitud y comportamiento de la vulnerabilidad financieraEn nuestra investigación, nuestro objetivo es conocer las actitudes y comportamientos financieros de los grupos sociales económicamente frágiles. Con base en una encuesta de cuestionario en línea (N = 22933 adultos), formamos grupos mediante análisis de conglomerados y los comparamos entre sí. Examinamos los grupos con métodos estadísticos multivariables, destacando las características relacionadas con la vulnerabilidad financiera. Además, desarrollamos la métrica de fragilidad financiera. Los resultados llaman la atención sobre el hecho de que la fragilidad financiera tiene múltiples razones complejas e interrelacionadas. En términos de personalidad financiera, actitud y comportamiento, alcanzaron el punto promedio más alto en el caso de reclamos claramente adversos, mientras que el más bajo en reclamos benéficos. Nuestros resultados demuestran que, incluso si el grupo financieramente vulnerable representa el 9 %, el grupo de los 'pozos de dinero' y los 'pasivos' muestran varias actitudes y patrones de comportamiento que podrían conducir a la fragilidad financiera en el futuro. La proporción acumulada de estos grupos asciende al 32%. Las personas económicamente vulnerables no cuidan bien ni sus finanzas ni su hogar, no pueden planificar ni prolongar sus deseos, y juzgan incurable su situación, a lo que se suma la ansiedad.In our research, we aim to become acquainted with the attitudes and financial behaviours of financially fragile social groups. Based on an online questionnaire survey (N=22933 adult), we formed groups by cluster analysis and compared them to each other. We examined the groups with multivariable statistical methods, underscoring the characteristics relating to financial vulnerability. Beside we developed the metric for financial fragility. The results draw attention that financial fragility has multiple, complex, interrelated reasons. In terms of financial personality, attitude, and behaviour, they reached the highest average point in case of distinctly adverse claims, while the lowest at beneficial claims. Our results demonstrate that even if the financially vulnerable cluster accounts for 9%, the group of 'money pits' and the 'passive' show several such attitudes and behavioural patterns that could lead to financial fragility in the future. The cumulative ratio of these groups amounts to 32%. Financially vulnerable people do not take good care of either their finances or their household, they can't plan or prolong their wishes, and they judge their situation incurable, which is coupled with anxiety

A study on usage status of electronic payment system (EPS): before, during and after COVID 19 pandemic lockdown period in India

COVID-19 pandemic enforces the world to move the electronic payment system. Due to nationwide lockdown in India for the period of 68 days in four phases starting from 25 March and ends on 18 May 2020, most of the payments are through electronic payment system (EPS). For purchases of goods and services through a physical store, where the shops used point of sale (POS) terminals for processing the card payment or a virtual sales point such as a computer, mobile or electronic devices applied electronic payment system. EPS comprises various methods but the present study mainly focuses on card services such as debit and credit cards. It is a quantitative study that classifies the study period into three sectors are before, during, and after the COVID 19 pandemic lockdown period in India. The objective of the research is to study the usage status of debit and credit cards for POS, it includes both numbers of transactions and amount of transactions. Usage status is measured through growth percentage. The study depends on secondary data were collected from RBI publications specifically from Bank wise ATM/POS/Card statistics. Based on data analysis the study concluded that the growth percentage of both debit and credit card usage for POS has been decreased from before the lockdown period to during the lockdown period. After the lockdown period, the status of usage increased in all banks. Overall, the decrease in the growth percentage of usage of cards is between 50% and 70% from before the lockdown period during the lockdown period. At the same time, the growth percentage of card usage has been increased in both number and amount of transactions from during the lockdown period to after the lockdown period is between 55% and 154

Why do many consumers prefer to pay now when they could pay later?

Payment timing is conceptualized as a payment characteristic useful in explaining motivations to prefer payment types. Cash, debit cards, and online banking represent consumers\u27 preferences to pay now, while credit cards and loans represent the inclination to pay later. Based on a grounded theory study, a payment‐timing model is developed to theorize consumers\u27 choices of payment types with differences in payment timing. The model presents four motivations for payment‐timing preferences: (1) the extent of rewards salience, (2) the perception of financial stress, (3) adopting heuristics for money management, and (4) the influence of perceived financial ability. Consumers choose payment‐timing options that best suit their financial strategy to manage payments in pursuit of their consumption objectives

PERBANDINGAN PENGGUNAAN KARTU DEBIT DAN UANG ELEKTRONIK (E-MONEY) TERHADAP MINAT KONSUMEN DALAM PEMILIHAN METODE PEMBAYARAN BERDASARKAN PERSPEKTIF MAQASHID SYARI’AH (Studi pada Mahasiswa Di Kota Bandar Lampung)

ABSTRAK Pada era digital saat ini, dorongan masyarakat untuk lebih cerdas terhadap kemudahan dengan segala manfaat di kegiatan sehari-hari dapat dibuktikan pada era yang modern. Berkembangnya perusahaan digital dan perbankan sangat mempengaruhi pergerakan di sektor keuangan digital, contohnya yaitu kartu debit dan uang elektronik (e�money). Penelitian ini bertujuan untuk mengetahui perbanding penggunaan kartu debit dan uang elektronik (e-money) terhadap minat konsumen dalam pemilihan metode pembayaran berdasarkan perspektif maqshid syari’ah. Jenis penelitian ini menggunakan penelitian kuantitatif atau survei. Di dalam pelaksanaan penelitian ini menggunakan pendekatan penelitian asosiatif atau hubungan. Dalam penelitian ini populasi yang diambil yaitu mahasiswa pria dan wanita yakni nasabah atau pengguna rekening bank dan pengguna uang elektronik (e-money) yang ada di Universitas Kota Bandar Lampung dengan menggunakan metode non-probability sampling yaitu purposive sampling dengan metode pengumpulan data kuesioner. Variabel independen pada penelitian ini adalah kartu debit dan uang elektronik (e-money) sedangkan variabel dependen pada penelitian ini adalah minat konsumen. Hasil penelitian ini adalah variabel kartu debit (X1) dengan nilai tertinggi 0,465 pada beta unstandardized sehingga variabel kartu debit merupakan variabel dominan yang mempengaruhi minat konsumen dalam pemilihan metode pembayaran pada mahasiswa di Kota Bandar Lampung, Sedangkan variabel uang elektronik (e-money) (X2) berpengaruh positif terhadap minat konsumen dalam pemilihan metode pembayaran pada mahasiswa di Kota Bandar Lampung. Variabel kartu debit dan uang elektronik (e-money) berpengaruh simultan terhadap minat konsumen dalam pemilihan metode pembayaran. Dalam masalah metode pembayaran, Islam sangat menganjurkan asalkan tetap mengikuti syariat Islam. Sesuatu dilarang apabila unsur transaksi itu membawa kemudharatan, sedangankan konsep islam sendiri adalah bahwa setiap transaksi ataupun pola kehidupan masyarakat harus membawa kemashalatan bagi umat manusia. Kata Kunci: Kartu Debit, Uang Elektronik (E-Money), Minat Konsumen, Maqashid Syari’ah. ABSTRACT In the digital era, people's encouragement to be smarter about convenience with all the benefits in their daily activities can be proven in the modern era. The development of digital companies and banking has greatly influenced movements in the digital financial sector, for example, debit cards and electronic money (e-money). This study aims to compare the use of debit cards and electronic money (e-money) on consumer interest in selecting payment methods based on perspectiveShariah hearing. This research uses quantitative research or surveys. In the implementation of this research using associative or relationship research approach. In this study, the population taken was male and female students, customers or users of bank accounts and users of electronic money (e-money) at the City University of Bandar Lampung by using non-probability sampling method that is purposive sampling with the questionnaire data collection method. The independent variables in this study are debit cards and electronic money (e-money) while the dependent variable in this study is consumer interest. The results of this study are the debit card variable (X1) with the highest value at 0.465 beta unstandardized so that the debit card variable is the dominant variable that influences consumer interest in selecting payment methods for students in Bandar Lampung City, while the electronic money variable (e-money) (X2) has a positive effect on consumer interest in choosing payment methods for students in Bandar Lampung City. Debit card and electronic money variables (e-money) simultaneous effect on consumer interest in the selection of payment methods. In terms of payment methods, Islam strongly recommends it as long as it follows Islamic law. Something is prohibited if the elements of the transaction lead to Mudharat, while the concept of Islam itself is that every transaction or pattern of people's life must bring to mashalahah for human. Keywords: Debit Card, Electronic Money (E-Money), Consumer Interest, Maqashid Shari'ah