Financial literacy, behavioral traits, and ePayment adoption and usage in Japan
Abstract This study investigates how financial literacy and behavioral traits affect the adoption of electronic payment (ePayment) services in Japan. We construct a financial literacy index using a representative sample of 25,000 individuals from the Bank of Japan’s 2019 Financial Literacy Survey. W...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2023-06-01
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| Series: | Financial Innovation |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40854-023-00504-3 |
| _version_ | 1827928457665839104 |
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| author | Trinh Quang Long Peter J. Morgan Naoyuki Yoshino |
| author_facet | Trinh Quang Long Peter J. Morgan Naoyuki Yoshino |
| author_sort | Trinh Quang Long |
| collection | DOAJ |
| description | Abstract This study investigates how financial literacy and behavioral traits affect the adoption of electronic payment (ePayment) services in Japan. We construct a financial literacy index using a representative sample of 25,000 individuals from the Bank of Japan’s 2019 Financial Literacy Survey. We then analyze the relationship between this index and the extensive and intensive usage of two types of payment services: electronic money (e-money) and mobile payment apps. Using an instrumental variable approach, we find that higher financial literacy is positively associated with a higher likelihood of adopting ePayment services. The empirical results suggest that individuals with higher financial literacy use payment services more frequently. We also find that risk-averse people are less likely to adopt and use ePayment services, whereas people with herd behavior tend to adopt and use ePayment services more. Our empirical results also suggest that the effects of financial literacy on the adoption and use of ePayment differ among people with different behavioral traits. |
| first_indexed | 2024-03-13T06:08:58Z |
| format | Article |
| id | doaj.art-031bbc69719948ff84bc70924e6f8cf1 |
| institution | Directory Open Access Journal |
| issn | 2199-4730 |
| language | English |
| last_indexed | 2024-03-13T06:08:58Z |
| publishDate | 2023-06-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj.art-031bbc69719948ff84bc70924e6f8cf12023-06-11T11:23:10ZengSpringerOpenFinancial Innovation2199-47302023-06-019113010.1186/s40854-023-00504-3Financial literacy, behavioral traits, and ePayment adoption and usage in JapanTrinh Quang Long0Peter J. Morgan1Naoyuki Yoshino2Faculty of Business, FPT University HCM CampusSenior Consulting Economist and Advisor to the Dean, Asian Development Bank InstituteFaculty of Economics, Keio UniversityAbstract This study investigates how financial literacy and behavioral traits affect the adoption of electronic payment (ePayment) services in Japan. We construct a financial literacy index using a representative sample of 25,000 individuals from the Bank of Japan’s 2019 Financial Literacy Survey. We then analyze the relationship between this index and the extensive and intensive usage of two types of payment services: electronic money (e-money) and mobile payment apps. Using an instrumental variable approach, we find that higher financial literacy is positively associated with a higher likelihood of adopting ePayment services. The empirical results suggest that individuals with higher financial literacy use payment services more frequently. We also find that risk-averse people are less likely to adopt and use ePayment services, whereas people with herd behavior tend to adopt and use ePayment services more. Our empirical results also suggest that the effects of financial literacy on the adoption and use of ePayment differ among people with different behavioral traits.https://doi.org/10.1186/s40854-023-00504-3Financial literacyFinancial literacy heterogeneityHerd behaviorRisk aversionePayment adoptionePayment usage |
| spellingShingle | Trinh Quang Long Peter J. Morgan Naoyuki Yoshino Financial literacy, behavioral traits, and ePayment adoption and usage in Japan Financial Innovation Financial literacy Financial literacy heterogeneity Herd behavior Risk aversion ePayment adoption ePayment usage |
| title | Financial literacy, behavioral traits, and ePayment adoption and usage in Japan |
| title_full | Financial literacy, behavioral traits, and ePayment adoption and usage in Japan |
| title_fullStr | Financial literacy, behavioral traits, and ePayment adoption and usage in Japan |
| title_full_unstemmed | Financial literacy, behavioral traits, and ePayment adoption and usage in Japan |
| title_short | Financial literacy, behavioral traits, and ePayment adoption and usage in Japan |
| title_sort | financial literacy behavioral traits and epayment adoption and usage in japan |
| topic | Financial literacy Financial literacy heterogeneity Herd behavior Risk aversion ePayment adoption ePayment usage |
| url | https://doi.org/10.1186/s40854-023-00504-3 |
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