Stimulation of Cashless Economy: Role of Tariffs Regulation and National Payment Systems

The research tested the influence of interchange fees regulations and implementation of National Payment Systems on the market of cashless payments. These effects on credit and debit cards markets were tested separately due to differences of these markets. Sample of 34 countries within the period of 2004 - 2017 was used for econometric estimation. For both markets it found significant that interchange fees regulation does not influence the volume of payments, while implementation of NPS significantly boosted markets. These results are meaningful econometrically and economically. Also they could be practically applied by the regulator while selecting more efficient method of its interference into payments market in order to stimulate it. Thus, interchange fees regulation does not have a significant influence on the market, while was mainly observed as stimulation measure; while NPS introduction mainly serves not only political objectives, but also economy ones, stimulates cashless market significantly.