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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Format: | Article |
Language: | English |
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Bank Indonesia
2020-09-01
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Series: | Journal of Islamic Monetary Economics and Finance |
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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. |
first_indexed | 2024-12-13T13:26:30Z |
format | Article |
id | doaj.art-56eab4c1371e4b62acae961fb6aaa792 |
institution | Directory Open Access Journal |
issn | 2460-6146 2460-6618 |
language | English |
last_indexed | 2024-12-13T13:26:30Z |
publishDate | 2020-09-01 |
publisher | Bank Indonesia |
record_format | Article |
series | Journal of Islamic Monetary Economics and Finance |
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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