THE INFLUENCE OF NON-CASH PAYMENT TRANSACTIONS ON ECONOMIC GROWTH IN 5 ASEAN COUNTRIES.

Technological advances are currently proliferating; financial technology is no exception. The development of financial technology has led to changes in payment system innovation from a cash payment system to a non-cash payment system. This research aims to determine how non-cash payment transactions influence the economic growth of five ASEAN countries. The economic growth variable in this study is calculated through the growth of real GDP published by the World Bank (WDI). The variable of noncash payments in this study is assumed to be through the growth of the transaction value of debit cards, credit cards, e-money, and cheques issued by the Bank International of Settlement (BIS). This study utilizes secondary data in panel data, cross-section data (5 ASEAN countries), and time series data (2012 - 2019). The analysis is carried out using the panel data regression method. This research found that the growth in the value of non-cash payment transactions in the form of debit cards and e-money has proven to encourage economic growth in these countries. Meanwhile, credit card and cheque payments had no impact on economic growth. This is because debit cards provide direct access to consumers' funds, making it easier for the public to consume goods and contributing to economic growth. E-money, an electronic payment instrument, has offered benefits as an alternative payment, particularly for micro and retail purchases. Through the use of e-money, the government's income can increase from the increasing number of customers who have used e-money payments, which can encourage economic growth. [ABSTRACT FROM AUTHOR]