The Diffusion of Payment Innovations

  • Tanai KhiaonarongEmail author
  • Jonathan Liebenau
Part of the Contributions to Economics book series (CE)


We illustrate the relative use of cash and electronic payments in five Asian countries–Japan, Korea, Singapore, Taiwan, and Thailand-as well as Hong Kong, an important economic zone of China. The purpose is to compare cash and other payment instrument use across these countries, determine the trend in cash use over 1995–2003, and illustrate how the transaction share of electronic payments in non-cash transactions has changed. This can provide a foundation for comparing payment system efficiency and technology adoption among Asian countries. We further note the apparent bank and retailer costs of accepting different payment instruments to get some idea of whether or not replacing cash transactions with electronic payments may lead to social benefits. A logistic projection of the share of electronic transactions in non-cash payments and the intensity of cash use in consumption is then presented.


Credit Card Cash Payment Card Payment Debit Card Electronic Payment 
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Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  1. 1.University of Westminster and Bank of ThailandPranakhonThailand
  2. 2.Department of Management Information Systems and Innovation GroupLondon School of Economics and Political ScienceLondonUK

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