Do Payment Technology Innovations Affect Currency Demand in Tunisia?

Nadia Mbazia
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Nadia Mbazia: Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, Tunis, Tunisia.

International Journal of Economics and Financial Issues, 2023, vol. 13, issue 1, 164-171

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.

Keywords: Currency demand; ATM; POS; ARDL (search for similar items in EconPapers)
JEL-codes: E41 E42 E44 G21 O33 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2023-01-17

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