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Assessing incentives to increase digital payment acceptance and usage: A machine learning approach

An important step to achieve greater financial inclusion is to increase the acceptance and usage of digital payments. Although consumer adoption of digital payments has improved dramatically globally, the acceptance and usage of digital payments for micro, small, and medium-sized retailers (MSMRs) r...

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Autores principales: Allen, Jeff, Carbo-Valverde, Santiago, Chakravorti, Sujit, Rodriguez-Fernandez, Francisco, Pinar Ardic, Oya
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9629583/
https://www.ncbi.nlm.nih.gov/pubmed/36322584
http://dx.doi.org/10.1371/journal.pone.0276203
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author Allen, Jeff
Carbo-Valverde, Santiago
Chakravorti, Sujit
Rodriguez-Fernandez, Francisco
Pinar Ardic, Oya
author_facet Allen, Jeff
Carbo-Valverde, Santiago
Chakravorti, Sujit
Rodriguez-Fernandez, Francisco
Pinar Ardic, Oya
author_sort Allen, Jeff
collection PubMed
description An important step to achieve greater financial inclusion is to increase the acceptance and usage of digital payments. Although consumer adoption of digital payments has improved dramatically globally, the acceptance and usage of digital payments for micro, small, and medium-sized retailers (MSMRs) remain challenging. Using random forest estimation, we identify 14 key predictors out of 190 variables with the largest predictive power for MSMR adoption and usage of digital payments. Using conditional inference trees, we study the importance of sequencing and interactions of various factors such as public policy initiatives, technological advancements, and private sector incentives. We find that in countries with low POS terminal adoption, killer applications such as mobile phone payment apps increase the likelihood of P2B digital transactions. We also find the likelihood of digital P2B payments at MSMRs increases when MSMRs pay their employees and suppliers digitally. The level of ownership of basic financial accounts by consumers and the size of the shadow economy are also important predictors of greater adoption and usage of digital payments. Using causal forest estimation, we find a positive and economically significant marginal effect for merchant and consumer fiscal incentives on POS terminal adoption on average. When countries implement financial inclusion initiatives, POS terminal adoption increases significantly and MSMRs’ share of P2B digital payments also increases. Merchant and consumer fiscal incentives also increase MSMRs’ share of P2B electronic payments.
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spelling pubmed-96295832022-11-03 Assessing incentives to increase digital payment acceptance and usage: A machine learning approach Allen, Jeff Carbo-Valverde, Santiago Chakravorti, Sujit Rodriguez-Fernandez, Francisco Pinar Ardic, Oya PLoS One Research Article An important step to achieve greater financial inclusion is to increase the acceptance and usage of digital payments. Although consumer adoption of digital payments has improved dramatically globally, the acceptance and usage of digital payments for micro, small, and medium-sized retailers (MSMRs) remain challenging. Using random forest estimation, we identify 14 key predictors out of 190 variables with the largest predictive power for MSMR adoption and usage of digital payments. Using conditional inference trees, we study the importance of sequencing and interactions of various factors such as public policy initiatives, technological advancements, and private sector incentives. We find that in countries with low POS terminal adoption, killer applications such as mobile phone payment apps increase the likelihood of P2B digital transactions. We also find the likelihood of digital P2B payments at MSMRs increases when MSMRs pay their employees and suppliers digitally. The level of ownership of basic financial accounts by consumers and the size of the shadow economy are also important predictors of greater adoption and usage of digital payments. Using causal forest estimation, we find a positive and economically significant marginal effect for merchant and consumer fiscal incentives on POS terminal adoption on average. When countries implement financial inclusion initiatives, POS terminal adoption increases significantly and MSMRs’ share of P2B digital payments also increases. Merchant and consumer fiscal incentives also increase MSMRs’ share of P2B electronic payments. Public Library of Science 2022-11-02 /pmc/articles/PMC9629583/ /pubmed/36322584 http://dx.doi.org/10.1371/journal.pone.0276203 Text en © 2022 Allen et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Allen, Jeff
Carbo-Valverde, Santiago
Chakravorti, Sujit
Rodriguez-Fernandez, Francisco
Pinar Ardic, Oya
Assessing incentives to increase digital payment acceptance and usage: A machine learning approach
title Assessing incentives to increase digital payment acceptance and usage: A machine learning approach
title_full Assessing incentives to increase digital payment acceptance and usage: A machine learning approach
title_fullStr Assessing incentives to increase digital payment acceptance and usage: A machine learning approach
title_full_unstemmed Assessing incentives to increase digital payment acceptance and usage: A machine learning approach
title_short Assessing incentives to increase digital payment acceptance and usage: A machine learning approach
title_sort assessing incentives to increase digital payment acceptance and usage: a machine learning approach
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9629583/
https://www.ncbi.nlm.nih.gov/pubmed/36322584
http://dx.doi.org/10.1371/journal.pone.0276203
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