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Comparing Digital Finance in the UK, US, India and Nigeria

Author

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  • Ozili Peterson K.

    (Central Bank of Nigeria, Abuja, Nigeria)

Abstract

This paper examines digital finance usage in the UK, US, India and Nigeria. Using data from the global financial development indicators, the findings reveal that the UK and US have higher digital finance usage than India and Nigeria. The US has higher credit card usage compared to the UK while the UK has higher debit card usage compared to the US. Also, Nigeria has higher debit card usage than India. The findings also show that higher debit card usage is correlated with higher domestic credit to the private sector in the US and Nigeria. Higher credit card usage is correlated with lower domestic credit to the private sector, lower private credit by deposit money banks, and fewer remittances to the UK. The implication of the findings is that policy makers in developing countries should develop the digital finance and payment systems in their countries to close up the wide gap in digital finance adoption between developing and developed countries.

Suggested Citation

  • Ozili Peterson K., 2020. "Comparing Digital Finance in the UK, US, India and Nigeria," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 16(4), pages 1-11, December.
    • Handle: RePEc:vrs:finiqu:v:16:y:2020:i:4:p:1-11:n:3
    DOI: 10.2478/fiqf-2020-0023
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    References listed on IDEAS

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    1. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    2. Thomas Philippon, 2016. "The FinTech Opportunity," NBER Working Papers 22476, National Bureau of Economic Research, Inc.
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    9. Ozili, Peterson K, 2020. "Contesting digital finance for the poor," MPRA Paper 101812, University Library of Munich, Germany.
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    Cited by:

    1. Ozili, Peterson K, 2021. "Bank non-performing loans in the Fintech era," MPRA Paper 113467, University Library of Munich, Germany.

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    More about this item

    Keywords

    Fintech; Digital finance; Credit card; Debit card; Payment system; Digital financial services; financial technology; financial institutions;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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