Digital Payment Adoption and Monetary Transmission in Local Consumer Markets
Keywords:
digital payments, monetary transmission, QRIS, money demand, consumer markets, IndonesiaAbstract
This integrative review examines the following Indonesia-focused question: How does wider use of digital payments alter the channels through which monetary policy reaches household spending and local merchant activity? The analysis treats digital payments as a conditional economic mechanism rather than a stand-alone headline indicator and evaluates how it interacts with monetary transmission. For digital payments, peer-reviewed research is read together with current official statistical and policy material, with Indonesia-specific evidence given priority and international studies used to clarify mechanisms. Across the reviewed material, the effect of digital payments varies with exposure, timing, market structure, institutional arrangements, and the capacity of decision makers to adjust. The article therefore develops a mechanism-based interpretation that distinguishes first-round transmission, behavioral response, and boundary conditions for monetary transmission. No primary survey, interview, firm observation, or regression estimate is manufactured for this digital payments conceptual review; empirical claims remain attributed to their original sources. The resulting digital payments framework supports differentiated measurement and identifies an Indonesia-specific research agenda for testing the proposed channels with more granular data.
Downloads
References
Sahay, R., von Allmen, U. E., Lahreche, A., Khera, P., Ogawa, S., Bazarbash, M., & Beaton, K. (2020). The promise of fintech: Financial inclusion in the post COVID-19 era. IMF Departmental Paper No. 20/09. Washington, DC: International Monetary Fund.
International Monetary Fund. (2023). Indonesia: 2023 Article IV Consultation - Press Release; Staff Report; and Statement by the Executive Director for Indonesia. IMF Country Report No. 23/221. https://doi.org/10.5089/9798400244988.002
Downloads
Published
Versions
- 2026-09-30 (2)
- 2026-09-29 (1)
Issue
Section
License
Copyright (c) 2026 Arif Budi Raharja, Ir. Nida Garnida Fitrianti, MSI (Author)

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.



