PSYCHOLOGICAL BARIERS IN THE USE OF ELECTRONIC MONEY

• Main Authors: Oleksandr Melnychenko, Anna Chkheailo
• Format: Article
• Language: English
• Published: Consilium LLC 2015-08-01
• Series: European Cooperation
• Subjects: електронні гроші; психологічні бар’єри; довіра; страх; звичка; мотивація
• Online Access: http://we.clmconsulting.pl/index.php/we/article/view/45

<p>Despite all the benefits for the use of electronic money as payment method for groceries and services scholar articles describe, it still has not fully substituted cash in any of the countries. This article focuses on the least studied aspects of using electronic money – psychological barriers in society.</p><p>Based on research, article concludes that substitution of cash by electronic money is impeded by lack of trust, low-level of motivation and weak ties between the issuers of currency, consumers and producers that use electronic money.</p>The article describes the following options to overcome the barriers: making electronic money the only method of payment available; increasing motivation for users of electronic money; promotion campaign; funding research of electronic money. Those and other options which aim to improve trust for electronic money may have positive economic impacts: reducing the cash flow outside of banking sector as a result reducing money laundering, reducing states’ costs of producing and maintaining cash flow and redirecting saved funds at the projects that improve social welfare, etc.