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Do Payment Technology Innovations Affect Currency Demand in Tunisia?

Author

Listed:
  • Nadia Mbazia

    (Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, Tunis, Tunisia.)

Abstract

This study investigates the impact of non-cash payment technologies on demand for currency in Tunisia using the autoregressive distributed lag (ARDL) cointegration approach from 2010M12 to 2018M7. In this context, our findings indicate a negative influence of EFT-POS terminals on currency demand. We have also shown that the demand for currency is positively influenced by the increase in the number of ATMs and the volume of transactions made by bank cards in circulation, reflecting the frequent use of cards to receive cash in Tunisia. Whereas, the impact of increase in check payments on demand for currency is negative and not significant. The empirical evidence shows that there is preference for cash in payment habits by Tunisian consumers. So, it should be noted that despite the development of payment systems, cash still attractive and an easier substitute for non-cash payments in Tunisia.

Suggested Citation

  • Nadia Mbazia, 2023. "Do Payment Technology Innovations Affect Currency Demand in Tunisia?," International Journal of Economics and Financial Issues, Econjournals, vol. 13(1), pages 164-171, January.
    • Handle: RePEc:eco:journ1:2023-01-17
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Currency demand; ATM; POS; ARDL;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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