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1 – 10 of 19This study aims to empirically examine the impact of the price structure of two-sided markets on transaction volume and market share (MS) in the context of the Korean credit card…
Abstract
This study aims to empirically examine the impact of the price structure of two-sided markets on transaction volume and market share (MS) in the context of the Korean credit card industry. The Korean credit card market differs from those in the United States (U.S.) or Europe in terms of transaction structure (i.e. a three-party system in Korea vs a four-party system in the U.S. or Europe) and government policy. In addition to the merchant discount rate and the cardholder annual membership fee rate, the authors included and analyzed exogenous variables to eliminate any endogeneity. Based on the analysis results, the authors found that credit card usage performance (i.e. transaction volume) increases with an increase in the relative price ratio (merchant discount rate ÷ cardholder membership fee rate) paid by merchants and cardholders, provided that the total price (merchant discount rate + cardholder membership fee rate) paid by merchants and cardholders remains constant. Therefore, this study is the first to confirm that the Korean credit card market operated as the theoretical mechanism of a two-sided market during the analysis period. This effect can only be observed in specific cases such as the launch of the so-called “Chief Executive Officer(CEO)-designed card.” When a new CEO takes office in a credit card company and launches a “CEO-designed card,” there is a significant increase in not only card usage performance but MS as well owing to the price structure changes caused by expanding the benefits that customers derive from card use.
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The literature review stated that financial inclusion (FI) influences economic growth through different channels. Hence, this paper aims to investigate the underlying process of…
Abstract
Purpose
The literature review stated that financial inclusion (FI) influences economic growth through different channels. Hence, this paper aims to investigate the underlying process of FI in Egypt theoretically, and to derive some policy implications for promoting the process and achieving more improvement in different financial and economic aspects, that is basically through discussing the opinions of FI's main stockholders in Egypt.
Design/methodology/approach
The analysis used secondary data from the Global Findex and FAS Database, namely, automated teller machines, outstanding deposits and loans with commercial banks, debit and credit cards ownership. The research particularly used scientific methods as method of deduction, methods of graphical and tabular representation of data, comparative analysis and synthesis of partial knowledge. The paper is also based on a descriptive approach in addition to in-depth interviews with the main stakeholders of the financial inclusion process in Egypt.
Findings
The analyzed results of interviews revealed that new FI vision should have a deep understanding of the financial lives of the poor and low-income groups, including how they acquire, manage and use their money. However, the impact is becoming more prominent for the efficiency of the banking system and hence economic growth rather a regulatory and sound institutional framework enhances it. This finding supported the fact that Egypt can design an appropriate FI strategy, but the main challenge is how to implement it with the required speed and outreach capacity, especially in underprivileged communities.
Research limitations/implications
The result of this study has interesting implications for Egypt's ability to attain effective FI initiatives that promote sound financial choices and behavior which in turn help to stimulate financial and economic growth.
Originality/value
The study contributes to the literature by assessing the FI level in Egypt, its implications and how it should be enhanced for better performance and results in the future. It addresses the deep fact of this process through inclusive surveys and interviews that help in determining the road ahead.
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The purpose of this paper is to investigate humanitarian supply chains in the context of the Ukrainian crisis as example of complex emergency. The paper focuses on a selection of…
Abstract
Purpose
The purpose of this paper is to investigate humanitarian supply chains in the context of the Ukrainian crisis as example of complex emergency. The paper focuses on a selection of support modes: in-kind donations, cash-based assistance and local procurement.
Design/methodology/approach
This paper adopts a case-study approach and interpretive paradigm. Findings are based on the analysis of primary sources including interviews with three Polish humanitarian organizations, internal documents, and secondary sources such as published reports.
Findings
Findings indicate that in a middle-income urbanized country such as Ukraine non-standard modes such as cash transfer programs and local procurement can be employed, since the necessary infrastructure and market are operational. However, each mode has limitations, so they should match the local context and the needs of diverse social groups.
Research limitations/implications
The findings and recommendations are specific to the case analyzed, Ukraine, and its socio-economic context. The research contributes to discussions about mode selection, stressing the links between mode, stage of the disaster response and local context.
Practical implications
Applying cash transfers and local procurement can reduce supply chain costs, such as transport and warehousing. Shortened supply chains enable faster responses and increased agility.
Social implications
Cash transfers and procurement involve the local community and beneficiaries, and can better fulfill needs maintaining people’s dignity. However, for vulnerable groups and those in conflict zones, in-kind goods are a better option.
Originality/value
The author argues that the much-discussed dichotomy of cash or goods does not reflect reality; local and regional procurement should be added as important support modes in middle-income countries in crisis.
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At the beginning of the 21st century, a new class of information workers, the “information have-less” has risen. This class of workers alleviates the influence of information and…
Abstract
Purpose
At the beginning of the 21st century, a new class of information workers, the “information have-less” has risen. This class of workers alleviates the influence of information and communication technologies (ICTs) revolution on poverty and unemployment. The purpose of this study is to investigate the presence of this class of workers in Egypt and assess the size and potential growth of this category of workers.
Design/methodology/approach
The study clarifies the conceptual framework of the new division of labor, in the information age. The Central Agency for Public Mobilization and Statistics, American Chamber of Commerce in Egypt, Ministry of Communications and Information Technology and Information and Decision Support Center websites provided secondary data for this study. These data are used to assess the size of “the information have less” in Egypt.
Findings
The division of work and class, in the 21st century, depends on the level of skills possessed to work with ICTs. So, class and labor nowadays could be divided into self-programmable labor (Innovators). Information have-less labor class, adding value to the economy by learning skills and presenting repetitive work. Generic labor class, who cannot work with ICTs, and work in jobs, that do not need computers or other ICTs. The study has shown that the “information have-less” labor class is present in Egypt since the beginning of the 21st century, in all its categories; entrepreneurism, the service sector and the manufacturing sector. There are approximately 50% of this labor class in the service sector and only 13% of the information have-less works in manufacturing sector despite the great opportunities that Egypt has to expand manufacturing to absorb more employment. The inclusion of information technology (IT), in all domains, has not decreased employment in Western countries but has reallocated information have-less employment toward the service sector, and there would probably be the same effect in Egypt.
Practical implications
The study highlights the need for Egyptian policymakers to encourage the manufacturing and service sectors to provide huge working opportunities. The Egyptian government has to change the educational policies, at all stages, to include digital learning skills so IT can be incorporated in a wide range of economic activities. Further research includes: conducting a survey to measure the contribution of the entrepreneurial part of the information have-less employment in Egypt. In addition, a model may be developed, by the researcher to examine the reallocation of employees in Egypt.
Originality/value
Studying employment, in Egypt, using the conceptual framework of the information age is rarely being done.
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This paper outlines the rapid rise of China's fintech companies over the past decade with a focus on their globalization strategies as they enter their next phase of development.
Abstract
Purpose
This paper outlines the rapid rise of China's fintech companies over the past decade with a focus on their globalization strategies as they enter their next phase of development.
Design/methodology/approach
The author examines China's current and prospective influence on global financial digitization trends, and assesses both domestic and foreign opportunities and challenges confronted by China's fintech firms as they look to expand abroad.
Findings
The Chinese government is experimenting with a radically new fintech system and a regulatory regime in response to it. Chinese ambitions to expand fintech influence through private companies and the state-led “digital RMB” (e-CNY) will likely provoke a wave of “digital protectionism” among developed nations to protect internal digital payments.
Originality/value
This paper is an original economic history research on China's fintech industry.
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Response to suggestion that EU-wide cash payment limits would assist in the control of terrorism finance and money laundering.
Abstract
Purpose
Response to suggestion that EU-wide cash payment limits would assist in the control of terrorism finance and money laundering.
Design/methodology/approach
Desk review and interviews
Findings
The inception impact assessment (IIA) is ill-conceived, not grounded on firm empirical evidence and harmful to both crime control and the legitimate interests and rights of the EU citizens. The action under discussion is presented as a measure against terrorism finance, serious crime and tax evasion. The problem is that these criminal acts correspond to very different methods, volumes, perpetrators, causes and control challenges. Cash payment limitations (CPLs) are nowhere near a panacea that can address all of them and cannot make any of them go away magically. Even when each of these crime challenges are considered on their own, the empirical linkage of CPLs to effective controls is not there. The evidence from EU countries with CPLs in place shows higher levels of informal economy, corruption, tax evasion and terrorism risks than those without. There is substantial evidence of non-cash, very serious and organized crime, while the amounts needed and used by terrorists in Europe are usually very small in cash transactions, way below the thresholds under consideration. In fact, determined offenders will shift to other methods and become more sophisticated, posing new problems to controllers. Displacement and incentives for better-organized crime may well be the main products of such measures.
Originality/value
It counters the argument that the cash payment limits can help reduce serious crime, while pointing to several adverse consequences on legitimate interests and human rights.
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Karen Kelly, Carl James Schwarz, Ricardo Gomez and Kim Marsh
The purpose of this paper is to present an empirical study on the time needed to load and disburse cash using bill validators on slot machines and stand-alone cash dispensers in…
Abstract
Purpose
The purpose of this paper is to present an empirical study on the time needed to load and disburse cash using bill validators on slot machines and stand-alone cash dispensers in casinos in British Columbia under a Ticket In Ticket Out (TITO) system.
Design/methodology/approach
Testing took place over two days, using 18 machines. The results were extrapolated to estimate the approximate time required to process $1,000,000 with different average bill amounts in the cash mix and three different bill validator machines in common use. The average value per bill using the cash mix used by the public in the casino was $33.11 [standard error (SE) $2.11].
Findings
The mean time/accepted note ranged from 4.12 to 9.65 s, depending on bill validator type. This implies that the time needed to load $1,000,000 onto credit slips using bill validators on slot machines ranges from 35 to 81 h, excluding rest breaks and other breaks. The time needed to redeem $1,000,000 is estimated to be 3 h.
Practical/implications
The implications of these finding for illicit actors to successfully launder large amounts of cash are discussed. Given the time needed to physically handle the cash, and other control systems currently in use in casinos in British Columbia, processing large amounts of cash using bill validators on slot machines would require a highly organized team that would find it difficult to elude detection.
Originality/value
The trial results provide a baseline estimate to be used going forward when investigating or proposing money laundering methodologies that include slot machines.
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Rolf van Wegberg, Jan-Jaap Oerlemans and Oskar van Deventer
This paper aims to shed light into money laundering using bitcoin. Digital payment methods are increasingly used by criminals to launder money obtained through cybercrime. As many…
Abstract
Purpose
This paper aims to shed light into money laundering using bitcoin. Digital payment methods are increasingly used by criminals to launder money obtained through cybercrime. As many forms of cybercrime are motivated by profit, a solid cash-out strategy is required to ensure that crime proceeds end up with the criminals themselves without an incriminating money trail. The authors examine how cybercrime proceeds can be laundered using services that are offered on the Dark Web.
Design/methodology/approach
Focusing on service-percentages and reputation-mechanisms in underground bitcoin laundering services, this paper presents the results of a cash-out experiment in which five mixing and five exchange services are included.
Findings
Some of the examined services provide an excellent, professional and well-reviewed service at competitive cost. Whereas others turned out to be scams, accepting bitcoin but returning nothing in return.
Practical implications
The authors discuss what these findings mean to law enforcement, and how bitcoin laundering chains could be disrupted.
Originality/value
These cash-out strategies are increasingly facilitated by cryptocurrencies, mainly bitcoin. Bitcoins are already relatively anonymous, but with the rise of specialised bitcoin money laundering services on the Dark Web, laundering money in the form of bitcoins becomes available to a wider audience.
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Kebone Agnes Mntande, Beate Stiehler‐Mulder and Mornay Roberts-Lombard
This study aims to explore the loyalty intent of prepaid (contract-free) customers in a market where disloyalty is prevalent and the market has low switching costs.
Abstract
Purpose
This study aims to explore the loyalty intent of prepaid (contract-free) customers in a market where disloyalty is prevalent and the market has low switching costs.
Design/methodology/approach
A quota, non-probability sampling technique was applied, resulting in the completion of 220 self-administered questionnaires that were used for data analysis. Confirmatory factor analysis and a structural equation model were applied to determine model fit and test the formulated hypotheses for this study.
Findings
The strength of the satisfaction–loyalty relationship is found to be influenced by three specific satisfaction antecedents, strengthened by the mediating role of customer delight and impacted by switching costs.
Practical implications
The findings of this study may guide mobile service providers in their initiatives to secure satisfaction and loyalty in a market context where switching costs are low and the market is described as disloyal.
Originality/value
This study investigates the well-researched relationship between satisfaction and loyalty and the antecedents of customer satisfaction to determine which of these variables should be the focus in a challenging market where consumers are disloyal and switching costs are low.
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Cristina Calvo-Porral and Luis-Miguel Otero-Prada
Mobile services are expanding rapidly, and in this tremendously dynamic environment, companies should provide value-added services to meet users’ demand. In this context, the…
Abstract
Purpose
Mobile services are expanding rapidly, and in this tremendously dynamic environment, companies should provide value-added services to meet users’ demand. In this context, the study aims to determine whether different user groups exist in this market and profile them.
Methodology
Based on the information of 568 mobile service users, a research was developed in the context of a mature mobile services market – Spain. A behavior-based cluster analysis is developed by means of confirmatory factor analysis (CFA), followed by two-step clustering. Then, an ANOVA and post hoc Tukey tests are conducted to confirm differences among the obtained clusters.
Findings
The study findings show that mobile service users cannot be perceived as a homogenous group, as different users with different behaviors coexist in this market. More specifically, four behavior-based segments emerge in the mobile service sector: “service connoisseurs,” “uninvolved pragmatics,” “potential switchers” and “delighted loyal”; “potential switchers” being the most challenging segment for mobile service companies.
Value
This study reports mobile service users’ heterogeneity; and in turn, mobile service managers should consider customers as four different types, instead of considering them as one single customer.
Propósito
Los servicios móviles se están expandiendo rápidamente y en este entorno tremendamente dinámico, las compañías de servicios móviles deberían de proporcionar servicios de valor añadido para satisfacer la demanda de sus usuarios. En este contexto, esta investigación tiene como objetivo determinar si existen diferentes grupo de usuarios en este mercado y aportar su pefil.
Metodología
Sobre la base de información de 568 usuarios de servicios móviles se lleva a cabo una investigación en el contexto de un mercado de servicios móviles maduro –España-. Se lleva a cabo un análisis clúster basado en el comportamiento de los usuarios, mediante un análisis factorial confirmatorio (CFA), seguido de un análisis clúster bi-etápico. A continuación, se realizan un test Anova y un test pos hoc de Tuckey para confirmar las diferencias entre los grupos obtenidos.
Resultados
Los resultados de la investigación muestran que los usuarios de servicios móviles no pueden ser percibidos como un grupo homogéneo, ya que en este mercado coexisten diferentes usuarios con diferentes comportamientos. Más específicamente, cuatro segmentos de usuarios surgen en el sector de los servicios móviles basados en su comportamiento: “conocedores del servicio”, “pragmáticos no involucrados”, “potenciales cambiadores de servicio” y “leales encantados”, siendo “potenciales cambiadores de servicio” los que presentan un mayor desafío las empresas de servicios móviles.
Valor
Este estudio muestra la heterogeneidad de los usuarios de servicios móviles, y por tanto, los gestores de los servicios móviles deben considerar a sus clientes como cuatro tipos diferentes, en lugar de considerarlos como un único tipo de cliente.
研究目的
移动服务正在迅速扩张,在这个巨大的动态环境中,企业应该提供增值服务来满足用户的需求。在此背景下,本研究旨在确定该市场是否存在不同的用户群体,并对其进行分析。
研究方法
基于568名移动服务用户的信息,在一个成熟的移动服务市场(西班牙)的背景下开展了本次研究。通过确认性因子分析(CFA)进行基于行为的聚类分析,然后进行两步聚类。最后,方差分析和事后Tukey检验被用于确认获得的聚类之间的差异。
研究结果
研究结果表明,移动服务用户不能被看作是一个同质的群体,因为在这个市场上共存着不同的用户,他们具有不同的行为。具体来说,移动服务领域可以划分为基于用户行为的四个细分市场:"服务行家"、"不参与的实用主义者"、"潜在的转换者 "和 "愉悦的忠诚者";其中,"潜在的转换者 "是对移动服务企业来说最具挑战性的细分市场。
研究价值
本研究报告了移动服务用户的异质性;反过来,移动服务管理者应该考虑把客户划分为四种不同的类型,而不是将他们视为一个单一的整体。
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