ONLINE PAYMENT, INDIVIDUAL CHARACTERISTICS, AND DIGITAL FINANCIAL INCLUSION IN OIC COUNTRIES

Digital financial inclusion (DFI) is a prominent issue in the digital era, since it focuses on the use of technology to serve unbanked people at low cost. The adoption of mobile money platforms that allow users to make efficient peer-to-peer and real-time transactions is one aspect of the DFI agenda...

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Main Authors: Rizqi Umar Al Hashfi, Alyta Shabrina Zusryn, Novi Lailatul Khoirunnisa, Ammelia Rizza Fitri Ayu Listyowati
Format: Article
Language:English
Published: Bank Indonesia 2020-09-01
Series:Journal of Islamic Monetary Economics and Finance
Subjects:
Online Access:https://jimf-bi.org/index.php/JIMF/article/view/1148
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author Rizqi Umar Al Hashfi
Alyta Shabrina Zusryn
Novi Lailatul Khoirunnisa
Ammelia Rizza Fitri Ayu Listyowati
author_facet Rizqi Umar Al Hashfi
Alyta Shabrina Zusryn
Novi Lailatul Khoirunnisa
Ammelia Rizza Fitri Ayu Listyowati
author_sort Rizqi Umar Al Hashfi
collection DOAJ
description Digital financial inclusion (DFI) is a prominent issue in the digital era, since it focuses on the use of technology to serve unbanked people at low cost. The adoption of mobile money platforms that allow users to make efficient peer-to-peer and real-time transactions is one aspect of the DFI agenda. This study aims to investigate the determinants of mobile money usage using data derived from the 2017 Global Financial Inclusion survey conducted by the World Bank and Gallup and applying probit regression and the Heckman selection model to check robustness. Even though access to a financial institution is relatively low, the percentage of mobile money usage in Organisation of Islamic Cooperation (OIC) countries is slightly higher than in non-OIC countries and worldwide. The rate of adoption of mobile money is higher for individuals making online transactions, with more educated and more prosperous males tending to be more included in the use of digital financial services. The U-shape hypothesis for the relationship between age and the use of mobile money is not supported. Our research contributes to the theoretical development of the Unified Theory of Acceptance and Use of Technology 2 in illustrating the use of mobile technology. The empirical results are recommended for use by practitioners, regulators and policymakers in creating and fostering a sound ecosystem for digital finance development.
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spelling doaj.art-56eab4c1371e4b62acae961fb6aaa7922022-12-21T23:44:18ZengBank IndonesiaJournal of Islamic Monetary Economics and Finance2460-61462460-66182020-09-016410.21098/jimf.v6i4.11481148ONLINE PAYMENT, INDIVIDUAL CHARACTERISTICS, AND DIGITAL FINANCIAL INCLUSION IN OIC COUNTRIESRizqi Umar Al Hashfi0Alyta Shabrina Zusryn1Novi Lailatul Khoirunnisa2Ammelia Rizza Fitri Ayu Listyowati3Universitas Gadjah MadaYARSI UniversityUniversitas Gadjah MadaUniversitas Gadjah MadaDigital financial inclusion (DFI) is a prominent issue in the digital era, since it focuses on the use of technology to serve unbanked people at low cost. The adoption of mobile money platforms that allow users to make efficient peer-to-peer and real-time transactions is one aspect of the DFI agenda. This study aims to investigate the determinants of mobile money usage using data derived from the 2017 Global Financial Inclusion survey conducted by the World Bank and Gallup and applying probit regression and the Heckman selection model to check robustness. Even though access to a financial institution is relatively low, the percentage of mobile money usage in Organisation of Islamic Cooperation (OIC) countries is slightly higher than in non-OIC countries and worldwide. The rate of adoption of mobile money is higher for individuals making online transactions, with more educated and more prosperous males tending to be more included in the use of digital financial services. The U-shape hypothesis for the relationship between age and the use of mobile money is not supported. Our research contributes to the theoretical development of the Unified Theory of Acceptance and Use of Technology 2 in illustrating the use of mobile technology. The empirical results are recommended for use by practitioners, regulators and policymakers in creating and fostering a sound ecosystem for digital finance development.https://jimf-bi.org/index.php/JIMF/article/view/1148digital financial inclusionmobile moneyonline paymentoic countries
spellingShingle Rizqi Umar Al Hashfi
Alyta Shabrina Zusryn
Novi Lailatul Khoirunnisa
Ammelia Rizza Fitri Ayu Listyowati
ONLINE PAYMENT, INDIVIDUAL CHARACTERISTICS, AND DIGITAL FINANCIAL INCLUSION IN OIC COUNTRIES
Journal of Islamic Monetary Economics and Finance
digital financial inclusion
mobile money
online payment
oic countries
title ONLINE PAYMENT, INDIVIDUAL CHARACTERISTICS, AND DIGITAL FINANCIAL INCLUSION IN OIC COUNTRIES
title_full ONLINE PAYMENT, INDIVIDUAL CHARACTERISTICS, AND DIGITAL FINANCIAL INCLUSION IN OIC COUNTRIES
title_fullStr ONLINE PAYMENT, INDIVIDUAL CHARACTERISTICS, AND DIGITAL FINANCIAL INCLUSION IN OIC COUNTRIES
title_full_unstemmed ONLINE PAYMENT, INDIVIDUAL CHARACTERISTICS, AND DIGITAL FINANCIAL INCLUSION IN OIC COUNTRIES
title_short ONLINE PAYMENT, INDIVIDUAL CHARACTERISTICS, AND DIGITAL FINANCIAL INCLUSION IN OIC COUNTRIES
title_sort online payment individual characteristics and digital financial inclusion in oic countries
topic digital financial inclusion
mobile money
online payment
oic countries
url https://jimf-bi.org/index.php/JIMF/article/view/1148
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AT alytashabrinazusryn onlinepaymentindividualcharacteristicsanddigitalfinancialinclusioninoiccountries
AT novilailatulkhoirunnisa onlinepaymentindividualcharacteristicsanddigitalfinancialinclusioninoiccountries
AT ammeliarizzafitriayulistyowati onlinepaymentindividualcharacteristicsanddigitalfinancialinclusioninoiccountries