IMPACT OF DIGITAL PAYMENTS ON THE ECONOMIC GROWTH OF A COUNTRY- A CASE OF THE CZECH REPUBLIC

Abstract

The way we pay has been evolving over a long period, with the slow fade-out of paper money; the digital system of payments is seen to pique the interest of consumers, institutions, and businesses. It is simply due to the more efficient features it displays compared to fiat money, and this is what the paper tries to identify, namely whether there exists an impact of these digital payments on the economy of the Czech Republic by carrying out linear and multiple regression analyses employing selected indicators from 2015 to 2020. To test for heteroscedasticity in the obtained regression models, the Breusch–Pagan test was employed. The results show that there does exist an impact of these digital payments, but not enough to justify a switch to or larger usage of such a payment system. This could also be due to insufficient transactional value data available for such digital payments. Access to more data can also allow the recognition of the real demand for digital payment products by consumers, which will enable a greater supply of digital payment systems and providers. Thus, more wide-ranging research with more digital payment–inclusive data could be carried out to identify the real impact of these payment systems on an economy.

Data:
Received: 25 Jan 2022
Revised: 10 Mar 2022
Accepted: 6 Apr 2022
Published: 20 Apr 2022