The role of Fintech in predicting the spread of COVID-19
-
DOIhttp://dx.doi.org/10.21511/bbs.16(1).2021.01
-
Article InfoVolume 16 2021 , Issue #1, pp. 1-16
- Cited by
- 2736 Views
-
933 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study aims to investigate the role of Fintech in predicting the spread of COVID-19 based on consumers’ Fintech perceptions and behavior before and after the outbreak of COVID-19. The study used a questionnaire-based survey distributed in different countries of the world using the LinkedIn platform for this purpose to reach the targeted population. The snowball sampling technique was used. The study targeted consumers with Fintech experience, especially in digital payments services. 507 samples were retrieved. For the analysis, the Structural Equation Modeling (SEM) was used. The study revealed novel results in predicting COVID-19 spread; these three variables (Fintech Behavior before COVID-19, Fintech Behavior after COVID-19, and Fintech Perception after COVID-19) could predict 52.5% of the variance in the dependent variable (COVID-19 Spread) (R² = 0.525, p < 0.05). The findings show that Higher Fintech perception and behavior among Fintech users will help in reducing the spread of COVID-19 by avoiding the use of contact payment methods. Contactless payment methods are the main tools in Fintech that might help in avoiding the probability of COVID-19 spread. Consumers’ Fintech perceptions and behavior are the most influencing factors that could predict the spread of COVID-19 in this study, where digital payments are the main concern. It is recommended that consumers adopt digital payment methods and tools, especially contactless payment methods, to fulfill their financial services. Other researchers are also encouraged to use the same model to predict the spread of this virus in the Fintech context.
- Keywords
-
JEL Classification (Paper profile tab)G20, O33, G21, G28
-
References36
-
Tables11
-
Figures2
-
- Figure 1. The study model
- Figure 2. SEM model
-
- Table 1. Study reliability test
- Table 2. Study validity test
- Table 3. Study variables
- Table 4. COVID-19 spread predictors scale
- Table 5. COVID-19 spread scale
- Table 6. Respondents’ characteristics
- Table 7. Regression weight
- Table 8. Squared multiple correlations
- Table 9. Covariances
- Table 10. Correlations
- Table 11. Standardized regression weights
-
- Angelakis, E., Azhar, E. I., Bibi, F., Yasir, M., Al-Ghamdi, A. K., Ashshi, A. M., Elshemi, A. G. & Raoult, D. (2014). Paper money and coins as potential vectors of transmissible disease. Future Microbiology, 9(2), 249-261.
- AP. (2020, March 20). Coronavirus: Paper money shunned by some businesses, consumers for fear of COVID-19 spread.
- Atalayar. (2020, April 21). Will Covid-19 containment measures accelerate the transition of Saudi Arabia into a cashless society?
- Bagozzi, R. P., & Phillips, L. W. (1991). Assessing Construct Validity in Organizational Research. Administrative Science Quarterly, 36(3), 421-458.
- Bhargava, H. D. (2020, April 22). How Long Does the Coronavirus Live on Surfaces?
- Chin, W. W. (1998). Commentary: Issues and Opinion on Structural Equation Modeling. MIS Quarterly, 22(1), 7-16.
- Clark, R. (2020, April). The cashless lobby is cashing in on Covid-19. The Spectator.
- Clement, J. (2019, June 20). Global mobile contactless payment users worldwide from 2018 to 2020. Statistic.
- CNA. (2020, April 15). Record number of digital banking transactions during COVID-19 period: Video.
- Cocheo, S. (2020, March 16). Coronavirus Crisis: The Future of Cash, Checks, Credit Cards & Crypto. The Financial Brand.
- ECDC. (2020, April 2). Questions and answers on COVID-19.
- Enberg, J. (2019, October 24). Global Mobile Payment Users 2019.
- Farr, M. (2020, April 8). Coronavirus: contaminated money fears push Australia to card payments and cashless shopping. The Guardian.
- GlobalData. (2020, April 6). Cash transactions in China to see negative growth up to 2023 due to Covid-19 outbreak, says GlobalData.
- GlobalData. (2020, January 13). Top countries moving towards a cashless society by 2022.
- Kampf, G., Todt, D., Pfaender, S., & Steinmann, E. (2020). Persistence of coronaviruses on inanimate surfaces and their inactivation with biocidal agents. Journal of Hospital Infection, 104(3), 246-251.
- Keelery, S. (2020, April 27). COVID-19 impact on use of digital payments in India 2020.
- Maddyness. (2020, April 1). The future of fintech in light of COVID-19.
- Maritz, J. M., Sullivan, S. A., Prill, R. J., Aksoy, E., Scheid, P., & Carlton, J. M. (2017). Filthy lucre: A metagenomic pilot study of microbes found on circulating currency in New York City. Plos One, 12(4).
- Maron, D. F. (2017, January 3). Dirty Money. Scientific American.
- McKinsey. (2020). How payments can adjust to the coronavirus pandemic--and help the world adapt.
- Merchant Savvy. (2020, February). 50+ Global Mobile Payment Stats, Data & Trends.
- Mordor Intelligence. (2019). Mobile Payments Market: Growth, Trends, and Forecast (2020–2025).
- Saigal, K. (2020, April 2). Cashless after Covid-19? EUROMONEY.
- Sonn, J. W. (2020, April 20). Coronavirus: South Korea’s success in controlling disease is due to its acceptance of surveillance. The Conversation.
- Statista Market Forecast. (n.d.). Digital Payments: worldwide.
- Travakol, M., & Dennick, R. (2011). Making Sense of Cronbach’s alfa. International Journal of Medical Education, 2(5), 53-55.
- Valero, J. (2020, February 20). EU eyes single space for European bank cards. EURACTIV.
- Valero, J. (2020, March 27). Cashless payments versus the pandemic. EURACTIV.
- van Doremalen, N., Bushmaker, T., Morris, D., Holbrook, M., Gamble, A., Williamson, B., Tamin, A., Harcourt, J., Thornburg, N., Gerber, S., Lloyd-Smith, J., de Wit, E., & Munster V. (2020). Aerosol and surface stability of SARSCoV-2 as compared with SARS-CoV-1. The New England Journal of Medicine, 382, 1564-1567.
- Velychko, D. (2020, April 6). COVID-19 outbreak pushes China towards cashless economy.
- Verisk Financial. (2020, March 27). Coronavirus concerns drive contactless card use.
- Weller, C. (2016, October 18). Getting rid of cash could have some pretty weird effects on our bodies.
- WHO. (2020a). Coronavirus (COVID-19).
- WHO. (2020b). Q&A on coronaviruses (COVID-19).
- William Fry. (2020, March). COVID-19 – Accelerating the Trend Towards a Cashless Society?