The relationship between payment inclusion and the demand for cash

Ilona Skibińska-Fabrowska, Małgorzata Czuchryta () and Adrian Żak
Additional contact information
Ilona Skibińska-Fabrowska: Maria Curie Sklodowska University, Faculty of Economics; Narodowy Bank Polski
Małgorzata Czuchryta: Narodowy Bank Polski
Adrian Żak: Narodowy Bank Polski

Bank i Kredyt, 2023, vol. 54, issue 4, 365-388

Abstract: The aim of the article is to identify the existence of a relationship between payment inclusion and the demand for cash and the impact of the behavioural factor, which is the uncertainty associated with a natural disaster (pandemic) on various streams of demand for cash. The authors formulated the following research hypotheses H1: Macroeconomic determinants in the form of the cost of money (represented by the interest rate) significantly affect the transaction demand for cash despite the increase in non-cash transactions with the use of funds in bank accounts. H2: Uncertainty as a behavioural factor affects the size of the demand for money, although this impact is more significant in the case of a demand of a precautionary nature than of a transaction nature. H3: The level of financial inclusion measured by the dissemination of non-cash transactions has a significant and negative impact on the transaction demand for cash. In order to verify them, the authors built a linear regression model. The obtained results of the study allowed to confirm the impact of uncertainty on the demand for cash. However, the impact of payment inclusion on the demand for cash was not confirmed in the study.

Keywords: demand for cash; payment behaviour; financial inclusion; payment inclusion; central bank (search for similar items in EconPapers)
JEL-codes: E41 E47 E51 E52 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bankikredyt.nbp.pl/content/2023/04/bik_04_2023_02.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpbik:v:54:y:2023:i:4:p:365-388

Access Statistics for this article

More articles in Bank i Kredyt from Narodowy Bank Polski Contact information at EDIRC.
Bibliographic data for series maintained by Wojciech Burjanek ().