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In a modern economy, the payment system is a major component of the country’s infrastructure system. Indeed, no country nowadays can afford to take its payment system for granted. Advances in information technology and changes in laws, institutions and regulations in some countries have encouraged the emergence of new payment instruments as well as...
Contexts in source publication
Context 1
... in both cases, the information flows and funds are being transferred. Figures 2 and 3 illustrate in a simple manner the operations of debit and credit transfer systems, respectively. 3 In a debit transfer, the flow of information providing the payment instructions moves in opposite direction to the flow of funds. ...
Context 2
... is similar in structure to direct transfer of cash from the payer to the payee except that it involves a financial intermediary or a bank. In this case, the payer instructs his bank to transfer funds from his account to the payee's account either in the same bank as illustrated in Figure 3 or in another bank. 5 The credit transfer process proceeds only after the payer's bank has authenticated the payment order it received and has determined that there are sufficient funds or credit in the account of the payer. ...
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Citations
... Direct debits are also ACH transactions which includes an estimate of the number of on-us payments. 4 Payments made in the United States using cards issued inside and outside the United States. 5 E-money products have not been widely adopted in the United States. ...
An efficient payment system acts as an enabler for speeding up liquidity flow in the economy, apart from ensuring proper utilization of limited resources it also eliminates systemic risks. Flow of funds across borders demands the security, integrity of the payment system and the harmonization of the systems in the related countries. The paper dwells with the need to modernize the payment system and migrate from paper-based to electronic mode of payment system to enhance efficiency and save cost. It delves in to the core of payment systems in the select countries with a comparative analysis. Benchmarking against the BIS core principles of Systemically Important Payment Systems revised as core principles of Financial Markets Infrastructure has been done to ensure convergence with the international best standards for Governance of Payment systems. The payment system of any country, though advanced and sophisticated, does face various risks, viz. bank failures, frauds, counter-party failures, etc. Such aberrations could trigger a chain-reaction that might ultimately result in disruption and distrust of the payment system. For example, if one large payment transaction cannot be settled, it disturbs other transactions leading to failure of the institutions involved in the process ultimately upsetting the entire payment system in the country. Such systematic and cascading breakdown of the payment system can hinder efficacy of monetary policy and badly impact confidence in the financial system. Minimization of systemic risk is therefore a critical challenge facing the regulators. Like in any ambitious economy, in India too, the fast advances in information technology, changes in regulatory framework, setting up of new institutions have aided to the rise of new payment practices, products and delivery channels for small as well as large value, and urgent payments. The paper shows areas for improvement in the efficiency in existing payment systems in India and the other countries especially in regard to the liquidity risk, operational risks, access criterion, transparency etc. In the end, the paper makes a modest attempt to identify opportunities and challenges for India. Numerous major changes in the payment system would take place at a quicker pace as e-commerce becomes more prevalent in the economic activities in the country.
The healthy growth of the financial market requires fast and secured transfer of money and financial instruments by using modern technologies. Delivering the financial services in the rural and remote areas helps the financial inclusions and boosts up the economic momentum and development thereby. The aim of this study is to investigate the comparative benefits between Electronic Fund Transfer and Automated Cheque Processing systems under Bangladesh Automated Clearing House in banking perspectives. The study is based on both primary and secondary data. Primary data collected from bank's officials through well designed questionnaire and secondary data collected from Annual Reports published by Bangladesh Bank. Recent past five years consolidated data of clearing transactions settled through BACH are considered here. Descriptive statistics, Chi-square Test & Z Test applied to analyze data. The paper concludes that payment and settlement in Electronic Fund Transfer system is more beneficial to the bankers as compare to Cheque Processing Systems.]
This study analyzes the impacts of digitalization on financial services on monetary policy in Thailand. Our empirical findings show that an increasing usage of electronic payment (e-Payment) among Thai people has small substitution effect on cash demand. Cash usage continues to rise along with size of the economy. Therefore, e-Payment has no apparent effect on monetary policy at this moment. However, the effects will gradually materialize consistent with e-Payment usage and government policies. In terms of efficiency, the study finds that digital payment usage could reinforce the effectiveness of monetary policy transmission in several channels, especially the asset price channel. This is because people could shift their portfolio investment more conveniently with lower costs. Moreover, our scenario analysis of the coming digital currency shows that if the daily use of cryptocurrencies becomes more popular, especially those which are not tied their prices with national currency, their widespread adoption might lead to lower demand for local currency and yield negative impacts on monetary policy. Hence, the issuance of central bank digital currency is one option that central banks could prepare to preserve their credibility on maintaining monetary and financial stability for the country.
This study investigates the switching intention and actual behavior of e-wallet users in Greater Jakarta by using the push-pull and mooring model. There were 33 constructs distributed in Greater Jakarta. Using a quantitative technique, this research used non-probability sampling. The samples collected consisted of 357 valid responses. PLS-SEM and bootstrapping were conducted to check the validity, reliability, and hypothesis testing. Based on the results, low efficiency and personal experience had no significant influence towards switching intention. There was a significant influence from switching cost, social image, security, and alternative attractiveness towards switching intention. Lastly, there was a significant influence of switching intention towards actual behavior. The results gained from the study generated managerial and theoretical implications, which later can be used for the e-wallet provider to improve its services.
It was recognized that eGovernment related applications act independently of each other, specifically in handling the same
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applications. The proposed system also incorporates data analytics to allow policymakers to see a range of perspectives
in decision-making for better public policies, programs, and processes. Methods/Analysis: Using the modified Princeton
Project Management Methodology as the software development framework, three essential modules were developed:
Payment Processing, Report Generation, and Data Analytics. Moreover, the municipal treasury officers of Nabua and Bula,
Camarines Sur, Philippines assessed the level of acceptability of POPS based on ISO 9126 software quality metrics using
the Developmental- Descriptive research methods. Findings: Based on results, the overall Likert score rating of POPS
is 4.21 or an adjectival perceptions rating of strongly agree. Novelty/ Importance: This implies that POPS implements
the necessary functional requirements for an eGov payment system according to the recommended ISO software quality
metrics as perceived by the end-users and IT experts’ respondents.
