FinTech and the COVID-19 Pandemic: Evidence from Electronic Payment Systems

Daniel Tut

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the effects of the Covid-19 pandemic on financial institutions and consumers’ adoption of FinTech in payments. We find that the pandemic: [1] Initially had a negative impact on the adoption of FinTech, but favorable short-term regulatory changes have reversed some of the negative effects [2] The use of all electronic payment cards has significantly declined during the pandemic except for charge cards. We find an increase in the use of charge cards as consumers shift towards cheaper forms of payment [3] The pandemic has magnified interbank contagion and liquidity risks and has reduced both domestic and international electronic fund transfers via RTGS. The pandemic has also resulted in a deterioration in the quality of commercial banks’ assets and balance sheets [4] Remittance inflows via FinTech platforms have significantly declined reflecting contractions in global economic activities.

Keywords: Covid-19; Coronavirus; Fintech; Mobile Payment; Central Banks; Financial Intermediaries; Financial Technologies; Banks; Interbank transfers; Diaspora Remittances; Settlement and Liquidity risks; clearing houses; financial stability; Pandemic; M-PESA; Digital Banking. (search for similar items in EconPapers)
JEL-codes: E32 E52 E58 G21 G28 G32 O16 O31 O32 O33 O38 O55 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-ban, nep-fdg, nep-mac and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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https://mpra.ub.uni-muenchen.de/102401/4/MPRA_paper_102401.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/107077/4/MPRA_paper_102401.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/107077/11/MPRA_paper_107077.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/107074/4/MPRA_paper_102401.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/107074/11/MPRA_paper_107074.pdf revised version (application/pdf)

Related works:
Journal Article: FinTech and the COVID-19 pandemic: Evidence from electronic payment systems (2023)
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