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The Effect of the ATM and the POS in the Demand for Money in Europe

In: European Integration Process in Western Balkan Countries

Author

Listed:
  • Susana da Silva Brito

    (Faculdade de Economia da Universidade de Coimbra)

  • Fátima Teresa Sol Murta

    (FEUC – Faculdade de Economia da Universidade de Coimbra, GEMF- Grupo de Estudos Monetários e Financeiros)

Abstract

The Single Euro Payments Area (SEPA) initiative aims to establish a single market for retail payments in euro, for which major progress has been made. Understanding the effects of financial innovation and new payment media on the demand for money is very important in this context. The aim of this work is to study the effect of the use of the Automated Teller Machines (ATM) and the Points of Sale (POS) in the demand for money in the European Union, in particular in the demand deposits, using panel data estimation. Our main conclusion indicates that the use of payments technology has a positive effect over the demand for overnight deposits.

Suggested Citation

  • Susana da Silva Brito & Fátima Teresa Sol Murta, 2012. "The Effect of the ATM and the POS in the Demand for Money in Europe," Book Chapters, in: Paulino Teixeira & António Portugal Duarte & Srdjan Redzepagic & Dejan Eric (ed.), European Integration Process in Western Balkan Countries, edition 1, volume 1, chapter 3, pages 54-71, Institute of Economic Sciences.
    • Handle: RePEc:ibg:chaptr:euinpro-3
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    References listed on IDEAS

    as
    1. Arrau, Patricio & De Gregorio, Jose & Reinhart, Carmen M. & Wickham, Peter, 1995. "The demand for money in developing countries: Assessing the role of financial innovation," Journal of Development Economics, Elsevier, vol. 46(2), pages 317-340, April.
    2. Lippi, Francesco & Secchi, Alessandro, 2009. "Technological change and the households' demand for currency," Journal of Monetary Economics, Elsevier, vol. 56(2), pages 222-230, March.
    3. Daniels, Kenneth N & Murphy, Neil B, 1994. "The Impact of Technological Change on the Currency Behavior of Households: An Empirical Cross-Section Study," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(4), pages 867-874, November.
    4. Columba, Francesco, 2009. "Narrow money and transaction technology: New disaggregated evidence," Journal of Economics and Business, Elsevier, vol. 61(4), pages 312-325, July.
    5. Duca, John V. & VanHoose, David D., 2004. "Recent developments in understanding the demand for money," Journal of Economics and Business, Elsevier, vol. 56(4), pages 247-272.
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    More about this item

    Keywords

    banks; ATM; POS; demand for money; financial technology;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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