Dynamic cross-border payment preferences: A qualitative study of Indonesian expatriates in Thailand and Malaysia
-
Author(s)Pandu KurniawanLink to ORCID Index: https://orcid.org/0009-0007-8795-3240
,
Didi AchjariLink to ORCID Index: https://orcid.org/0000-0002-4514-6789
-
DOIhttp://dx.doi.org/10.21511/bbs.19(2).2024.09
-
Article InfoVolume 19 2024, Issue #2, pp. 115-125
- 520 Views
-
114 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Along with the development of global digitalization, international financial transactions are also advancing. In response, Indonesia (Bank Indonesia) collaborated with Malaysia and Thailand by launching Local Currency Settlement (LCS) integrated with Quick Response (QR) codes to reduce the use of dollars in cross-border transactions. Therefore, this study aims to investigate the Indonesian customer (Indonesian expatriates) preferences for payment methods provided by Bank Indonesia, specifically in the context of facilitating cross-border transactions. The number of research participants was 50 Indonesian expatriates (36 in Thailand, 14 in Malaysia), who were purposefully selected based on the criteria of being Indonesian traveling, studying, or residing in Thailand and Malaysia while maintaining Indonesian bank accounts. To identify these preferences, this study uses qualitative research using the Analytic Hierarchy Process (AHP) method. Based on the Hierarchical analysis, the results show that the main alternatives in payment method preference in Thailand and Malaysia show that Visa is still the most dominant in cross-border transactions. Across hierarchical criteria, including trust, speed, usability, installment flexibility, timing, and offering interest-free installment plans, Visa consistently outperformed QR Codes and Cash. Nonetheless, it is essential to highlight that QR Codes scored the highest in the criteria of Ease of Use in Malaysia. While in Thailand, QR codes achieved the highest score in terms of cost-effectiveness.
- Keywords
-
JEL Classification (Paper profile tab)E42, E58
-
References37
-
Tables3
-
Figures1
-
- Figure 1. Research framework
-
- Table 1. Research participant demographic payment method preference in Thailand and Malaysia
- Table 2. Hierarchical analysis of payment method alternatives in Thailand
- Table 3. Hierarchical analysis of payment method alternatives in Malaysia
-
- Abdennebi, H. B. (2023). M-banking adoption from the developing countries perspective: A mediated model. Digital Business, 3(2).
- Adriantantri, E., Wilis, D., Basuki, L., & Nurcahyo, E. (2020). Integration of AHP and DEA Methods for Supplier Selection. International Journal of Latest Engineering and Management Research (IJLEMR), 05(02), 40-47.
- Agarwal, R. K. (2023). Emerging Economics, Emergent Currencies: A Look into Dedollarization in Southeast Asia. Modern Economy, 14(10), 1432-1438.
- Amoah, B., Amoah, A., Kwablah, E., & Dzeha, G. C. (2023). Trust in government and electronic levy payment decisions in Ghana. Urban Governance, 3(4), 252-258.
- Auer, R., Haene, P., & Holden, H. (2021). Multi-CBDC arrangements and the future of cross-border payments. BIS Papers, 115, 17.
- Bank Indonesia. (2022). Joint Press Release: Launch of the Cross-Border QR Payment Linkage between Indonesia and Malaysia.
- Brunnermeier, M. K., James, H., & Jandau, J.-P. (2019). The Digitization of Money (NBER Working Paper No. 26300).
- Bui, M. T. T., & Luong, T. N. O. (2023). Financial inclusion for the elderly in Thailand and the role of information communication technology. Borsa Istanbul Review, 23(4), 818-833.
- Byun, D. H. (2001). The AHP approach for selecting an automobile purchase model. Information and Management, 38(5), 289-297.
- Chaveesuk, S., & Piyawat, N. (2021). Use of QR code technology in eastern Thailand: entrepreneur perspective. Utopía y Praxis Latinoamericana, 26(2), 76-88.
- Che Nawi, N., Mamun, A. Al, Hayat, N., & Seduram, L. (2022). Promoting Sustainable Financial Services Through the Adoption of eWallet Among Malaysian Working Adults. SAGE Open, 12(1).
- Cheng, E. W. L., & Li, H. (2001). Analytic hierarchy process: an approach to determine measures for business performance. Measuring Business Excellence, 5(3), 30-36.
- Creswell, J. W., & Poth, C. N. (2016). Qualitative Inquiry and Research Design (4th ed.). SAGE Publications Inc.
- Gunawan, A., Fatikasari, A. F., & Putri, S. A. (2023). The Effect of Using Cashless (QRIS) on Daily Payment Transactions Using the Technology Acceptance Model. Procedia Computer Science, 227, 548-556.
- Hairani, F., Hanan, F., Omar, M. F., Khalid, K., & Muhamad, M. (2021). Retail Customer Acceptance Toward QR Code Payment System in Malaysia. International Conference on Business and Technology, 505-515.
- Hamzah, M. I., Ramli, F. A. A., & Shaw, N. (2023). The moderating influence of brand image on consumers’ adoption of QR-code e-wallets. Journal of Retailing and Consumer Services, 73, 103326.
- Hartono, J. (Ed.). (2018). Metoda Pengumpulan dan Teknik Analisis Data [Data Collection Methods and Analysis Techniques] (1st ed.). ANDI. (In Indonesian).
- Kuehnlenz, S., Orsi, B., & Kaltenbrunner, A. (2023). Central bank digital currencies and the international payment system: The demise of the US dollar? Research in International Business and Finance, 64, 101834.
- Kukuk, L. (2020). Analyzing adoption of COVID-19 contact tracing apps using UTAUT. 33rd Twente Student Conference on IT, July 3rd, 2020, Enschede, The Netherlands.
- Mardiana, A. (2018). Local Currency Settlement (LCS) Framework and The ASEAN Way: Implementation of Regional Monetary Agenda (Doctoral Thesis). Universitas Gadjah Mada. (In Indonesian).
- Narendra, K., & Aghila, G. (2021). Fortis-ámyna-smart contract model for cross border financial transactions. ICT Express, 7(3), 269-273.
- Niu, B., Shen, Z., Xie, F., Liu, Y., & Xu, X. (2022). Real-time payment in cross-border operations considering local competition and tax-planning. International Journal of Production Economics, 245, 108395.
- Nofansya, A., & Sidik, H. (2022). Kerja Sama Ekonomi Indonesia-Malaysia-Thailand: Penguatan Local Currency Settlement (LCS) Framework Dalam Memfasilitasi Perdagangan [Indonesia-Malaysia-Thailand Economic Cooperation: Strengthening the Local Currency Settlement (LCS) Framework in Facilitating Trade]. Padjadjaran Journal of International Relations, 4(2), 164-178. (In Indonesian).
- Nusair, S. A., & Olson, D. (2019). The effects of oil price shocks on Asian exchange rates: Evidence from quantile regression analysis. Energy Economics, 78, 44-63.
- Osmani, M., Moradi, K., Rozan, M. Z. A., & Layegh, M. A. (2017). Using AHP method to evaluate e-payment system factors influencing mobile banking use in Iranian banks. International Journal of Business Information Systems, 24(4), 511-528.
- Purwanto, F. A. I., Kartawinata, B. R., Pradana, M., & Akbar, A. (2024). Quick Response Codes’ Benefits for MSMEs: A Visualised Bibliometric Approach. WSEAS Transactions on Computer Research, 12, 93-98.
- Puspitasari, A. A., & Salehudin, I. (2022). Quick Response Indonesian Standard (QRIS): Does Government Support Contribute to Cashless Payment System Long-term Adoption? Journal of Marketing Innovation (JMI), 2(1), 1-15.
- Ritchie, J., & Lewis, J. (2003). Qualitative Research Practice: A Guide for Social Science Students and Researchers. Sage Publications.
- Saaty, T. (2008). Decision making with the Analytic Hierarchy Process. International Journal of Services Sciences, 1(1), 83-98.
- Saputri, O. B. (2020). Preferensi Konsumen Dalam Menggunakan Quick Response Code Indonesia Standard (QRIS) Sebagai Alat Pembayaran Digital [Consumer Preferences in Using the Quick Response Code Indonesia Standard (QRIS) as a Digital Payment Tool]. Kinerja, 17(2), 237-247. (In Indonesian).
- Sekaran, U., & Bougie, R. (2016). Research Methods for Business (7th edition). John Wiley & Sons Ltd.
- Tagiyeva, N., Babashirinova, E., Agabekova, G., Damirov, Y., & Ismayilova, G. (2023). Interdependence of the banking system development and the economic growth in the context of digitalization: Case study of Azerbaijan and its key trading partners. Banks and Bank Systems, 18(3), 147-163.
- Tang, C. M. & Ngerng, M. H. (2015). How Do Students Select Social Networking Sites? An Analytic Hierarchy Process (AHP) Model. International Journal of Cyber Society and Education, 8(2), 81-98.
- Vatsa, V., Agarwal, B., & Gupta, R. (2023). Unlocking the potential of loyalty programs in reference to customer experience with digital wallets. Innovative Marketing, 19(1), 233-243.
- Widayat, W., Marsudi, & Masudin, I. (2023). QR-code-based payment. Does the consumer intend to adopt a retail buying transaction? Banks and Bank Systems, 18(3), 1-13.
- Wu, J., Jiang, N., Wu, Z., & Jiang, H. (2021). Early warning of risks in cross-border mobile payments. Procedia Computer Science, 183, 724-732.
- Wu, M., (David) Liu, Y., Jasimuddin, S. M., & Zhang, J. Z. (2023). Rethinking cross-border mobile payment ecosystems: A process study of mobile payment platform complementors, network effect holes and ecosystem modules. International Business Review, 32(1), 102026.
-
Critical challenges affecting Islamic banking growth in India using Analytical Hierarchy Process (AHP)
Mosab I. Tabash
doi: http://dx.doi.org/10.21511/bbs.12(3).2017.02
Banks and Bank Systems Volume 12, 2017 Issue #3 pp. 27-34 Views: 1140 Downloads: 1601 TO CITE АНОТАЦІЯThe banking sector plays a vital role in growth-supporting factor for economic growth in the world’s fastest-growing economies like India. Recently, Islamic banking has become an increasingly popular method for alleviating poverty, financial inclusion and economic development around the world. Its importance is highly needed in developing and emerging countries such as India. The main purpose of the paper is to identify and prioritize the critical impeding factors for Islamic banking growth in India. The study is conducted in two stages: the first stage involves investigating the current literature works regarding the challenges facing Islamic banking industry in India, while the second stage is based on identifying and prioritizing these challenges according to its importance in hindering Islamic banking growth by Analytic Hierarchy Process (AHP). AHP is a multi-criterion decision making tool for organizing and analyzing decisions, based on qualitative and quantitative measures. The results show that the regulatory environmental challenge is the most significant factor among other factors in impeding the growth of Islamic banking in India followed by lack of Islamic banking experts and scholars. The third main challenge is lack of awareness for Islamic banking instruments followed by lack of standardization and the last is lack of cooperation and coordination between Islamic banking authorities. This study is considered the first one to address empirically the challenges facing Islamic banking industry in the world and particularly in India.
