Template-Type: ReDIF-Article 1.0
Author-Name: Kristina V. Shvandar
Author-Email: Shvandar@nifi.ru
Author-Workplace-Name: Financial Research Institute, Moscow 127006, Russia
Author-Name: Vsevolod Y. Cherkasov
Author-Email: vcherkasov@nifi.ru
Author-Workplace-Name: Financial Research Institute, Moscow 127006, Russia
Title: Cash or Card? Retail Payments in Armenia
Abstract: The article discusses the problem of penetration of non-cash payment instruments into the retail market. Settlements without cash facilitate transparency of transactions. Limitation of the allowable amount of cash payment for retail purchases, which has examples in the world, can facilitate counteraction to transactions that hide criminal activity and tax evasion. However, the grounds for large cash payments limitation are convincing when non-cash instruments have penetrated deeply into the small transactions market. Payment cards compete with cash in transactional costs, and their competitiveness depends on the size of interchange fee. The authors assume, that restricting the allowable amount of cash payments would be a rational step for Armenia to restrain shadow economic activity, but non-cash payment instruments should penetrate deeper into the retail market at first. Efficient solutions could be facilitated by a study of costs in the payment system.
Classification-JEL: E42, E51, H26, J33
Keywords: non-cash payments, restrictions on cash payments, costs, interchange fee, Armenia
Journal: Finansovyj žhurnal — Financial Journal
Pages:109-119
Issue: 6
Year: 2018
Month: December
DOI: 10.31107/2075-1990-2018-6-109-119
File-URL: http://www.finjournal-nifi.ru/images/FILES/Journal/Archive/2018/6/statii/fm_2018_6_09.pdf
File-Format: Application/pdf 
Handle: RePEc:fru:finjrn:180609:p:109-119