IDEAS home Printed from https://ideas.repec.org/a/tec/journl/v40y2023i1p200-212.html
   My bibliography  Save this article

The impact of Covid-19 on electronic payment system: Lesson learned from Indonesian banking

Author

Listed:
  • Farida Farida

    (Universitas Gunadarma.)

  • Sugiharti Binastuti

    (Universitas Gunadarma.)

  • Widya Silfianti

    (Universitas Gunadarma.)

  • Budi Hermana

    (Universitas Gunadarma.)

Abstract

The Indonesian economy suffered a recession due to the COVID-19 pandemic, the first case of which was announced on March 3, 2020. In response to this disaster, various economic sectors carried out digital transformation, including the banking sector. This research is a case study of how Indonesian banking responded to the pandemic through various central bank policies complemented by literature review on the impact of the pandemic on the banking sector in the world, as well as the development of electronic payment systems before, during and after the COVID-19 pandemic. The central bank issued several regulations of relaxation to reduce the impact of the pandemic on the banking sector. From the perspective of society, the pandemic has actually accelerated the use of digital payment systems in Indonesia. The most widely used electronic payment instrument is electronic money, followed by RTGS transactions with data periods ranging from 2016 to 2021. ATM/Debit card transactions show relatively no fluctuating increases, while credit card transactions show a decline during the same observation period. The trend of increasing electronic transactions is expected to continue after the pandemic and will become a necessity in the Indonesian economy onwards

Suggested Citation

  • Farida Farida & Sugiharti Binastuti & Widya Silfianti & Budi Hermana, 2023. "The impact of Covid-19 on electronic payment system: Lesson learned from Indonesian banking," Technium Social Sciences Journal, Technium Science, vol. 40(1), pages 200-212, February.
    • Handle: RePEc:tec:journl:v:40:y:2023:i:1:p:200-212
    DOI: 10.47577/tssj.v40i1.8295
    as

    Download full text from publisher

    File URL: https://techniumscience.com/index.php/socialsciences/article/view/8295/3058
    Download Restriction: no
    File URL: https://techniumscience.com/index.php/socialsciences/article/view/8295
    Download Restriction: no
    File URL: https://libkey.io/10.47577/tssj.v40i1.8295?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Berger, Allen N. & Demirgüç-Kunt, Asli, 2021. "Banking research in the time of COVID-19," Journal of Financial Stability, Elsevier, vol. 57(C).
    2. Armando Silva & Zbigniew Korzeb & Pawe? Niedzió?ka, 2021. "Impact of the COVID-19 crisis on the Portuguese banking system. Linear ordering method," Estudios Gerenciales, Universidad Icesi, vol. 37(159), pages 226-241, June.
    3. Rulyanti Susi Wardhani & Erita Rosalina & Ratih Elvany & Murtiadi Awaluddin, 2021. "Banking financial performance during Covid-19," Technium Social Sciences Journal, Technium Science, vol. 19(1), pages 302-310, May.
    4. Rizwan, Muhammad Suhail & Ahmad, Ghufran & Ashraf, Dawood, 2020. "Systemic risk: The impact of COVID-19," Finance Research Letters, Elsevier, vol. 36(C).
    5. Reza Y. Siregar & Anton H. Gunawan & Adhi N. Saputro, 2021. "Impact Of The Covid-19 Shock On Banking And Corporate Sector Vulnerabilities In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 57(2), pages 147-173, May.
    6. Bipasha Barua & Suborna Barua, 2021. "COVID-19 implications for banks: evidence from an emerging economy," SN Business & Economics, Springer, vol. 1(1), pages 1-28, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Subhash Karmakar & Gautam Bandyopadhyay & Jayanta Nath Mukhopadhyay, 2024. "Systemic Risk in Indian Financial Institutions: A Probabilistic Approach," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 31(3), pages 579-656, September.
    2. Guo, Wen-Chung & Tseng, Ping-Lun, 2023. "COVID-19, bank risk, and capital regulation: The aggregate shock and social distancing," The Quarterly Review of Economics and Finance, Elsevier, vol. 92(C), pages 155-173.
    3. Gulati, Rachita & Charles, Vincent & Hassan, M. Kabir & Kumar, Sunil, 2023. "COVID-19 crisis and the efficiency of Indian banks: Have they weathered the storm?," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    4. Faaza Fakhrunnas & Rindang Nuri Isnaini Nugrohowati & Razali Haron & Mohammad Bekti Hendrie Anto, 2022. "The Determinants of Non-Performing Loans in the Indonesian Banking Industry: An Asymmetric Approach Before and During the Pandemic Crisis," SAGE Open, , vol. 12(2), pages 21582440221, June.
    5. Cao, Yifei & Chou, Jen-Yu, 2022. "Bank resilience over the COVID-19 crisis: The role of regulatory capital," Finance Research Letters, Elsevier, vol. 48(C).
    6. Brada, Josef C. & Gajewski, Paweł & Kutan, Ali M., 2021. "Economic resiliency and recovery, lessons from the financial crisis for the COVID-19 pandemic: A regional perspective from Central and Eastern Europe," International Review of Financial Analysis, Elsevier, vol. 74(C).
    7. Hasan, Iftekhar & Li, Xiang & Takalo, Tuomas, 2023. "Technological innovation and the bank lending channel of monetary policy transmission," IWH Discussion Papers 14/2021, Halle Institute for Economic Research (IWH), revised 2023.
    8. Kyriazis, Nikolaos & Corbet, Shaen, 2024. "Evaluating the dynamic connectedness of financial assets and bank indices during black-swan events: A Quantile-VAR approach," Energy Economics, Elsevier, vol. 131(C).
    9. Doumpos, Michalis & Zopounidis, Constantin & Gounopoulos, Dimitrios & Platanakis, Emmanouil & Zhang, Wenke, 2023. "Operational research and artificial intelligence methods in banking," European Journal of Operational Research, Elsevier, vol. 306(1), pages 1-16.
    10. Lu, Ran & Xu, Wen & Zeng, Hongjun & Zhou, Xiangjing, 2023. "Volatility connectedness among the Indian equity and major commodity markets under the COVID-19 scenario," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1465-1481.
    11. Addi, Abdelhamid & Bouoiyour, Jamal, 2023. "Interconnectedness and extreme risk: Evidence from dual banking systems," Economic Modelling, Elsevier, vol. 120(C).
    12. Lööf, Hans & Sahamkhadam, Maziar & Stephan, Andreas, 2022. "Is Corporate Social Responsibility investing a free lunch? The relationship between ESG, tail risk, and upside potential of stocks before and during the COVID-19 crisis," Finance Research Letters, Elsevier, vol. 46(PB).
    13. Faisal Mohammed O. Almaslukh & Haliyana Khalid & Alaa Mahdi Sahi, 2022. "The Impact of Internal Marketing Practices on Employees’ Job Satisfaction during the COVID-19 Pandemic: The Case of the Saudi Arabian Banking Sector," Sustainability, MDPI, vol. 14(15), pages 1-15, July.
    14. Sylwester Kozak, 2021. "The Impact of COVID-19 on Bank Equity and Performance: The Case of Central Eastern South European Countries," Sustainability, MDPI, vol. 13(19), pages 1-15, October.
    15. Bitar, Mohammad & Tarazi, Amine, 2022. "A note on regulatory responses to COVID-19 pandemic: Balancing banks’ solvency and contribution to recovery," Journal of Financial Stability, Elsevier, vol. 60(C).
    16. Zhu, Bo & Lin, Renda & Deng, Yuanyue & Chen, Pingshe & Chevallier, Julien, 2021. "Intersectoral systemic risk spillovers between energy and agriculture under the financial and COVID-19 crises," Economic Modelling, Elsevier, vol. 105(C).
    17. Gao, Penghui & Secor, William & Escalante, Cesar L., 2022. "Banking Efficiency Analysis for U.S. agricultural and non-agricultural banks: Comparative Period Analysis between the Great Recession of the late 2000s and the Current Pandemic conditions," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322329, Agricultural and Applied Economics Association.
    18. Hafeez, Bilal & Li, Xiping & Kabir, M. Humayun & Tripe, David, 2022. "Measuring bank risk: Forward-looking z-score," International Review of Financial Analysis, Elsevier, vol. 80(C).
    19. Duncan, Elizabeth & Horvath, Akos & Iercosan, Diana & Loudis, Bert & Maddrey, Alice & Martinez, Francis & Mooney, Timothy & Ranish, Ben & Wang, Ke & Warusawitharana, Missaka & Wix, Carlo, 2022. "COVID-19 as a stress test: Assessing the bank regulatory framework," Journal of Financial Stability, Elsevier, vol. 61(C).
    20. Michal Bernardelli & Zbigniew Korzeb & Pawel Niedziolka, 2021. "The banking sector as the absorber of the COVID-19 crisis’ economic consequences: perception of WSE investors," Oeconomia Copernicana, Institute of Economic Research, vol. 12(2), pages 335-374, June.

    More about this item

    Keywords

    Digital transformation; electronic payment system; digital banking; COVID-19;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tec:journl:v:40:y:2023:i:1:p:200-212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tasente Tanase (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.