Summary of the article:
Today, digital payment systems are becoming increasingly indispensable in the daily lives of many people. The increasing use of digital payment systems has the potential to affect both the ability to make transactions within the financial system and the development of the financial system. Compared to cash or other physical payment instruments used in traditional financial transactions, with the widespread use of digital payments, access to financial institutions becomes more accessible, and their depth increases. In this context, the study aimed to investigate the effects of digital payment systems offered by the Turkish Banking Sector on the access and depth of financial institutions. The basis of the empirical findings is based on the data set compiled annually for the Türkiye sample from the IMF, BKM, and WB for the period 1990-2021. The results obtained using the OLS method show that all of the variables of the Number of Credit Cards, Number of Debit Cards, ATM Devices, and POS Devices, considered digital payment systems, can positively affect the depth of financial institutions. In addition, it is understood that using credit and debit cards could be more effective regarding access to financial institutions. Additionally, using credit and debit cards does not affect access to financial institutions. However, the increase in ATM and POS devices may increase access to financial institutions. Taken as a whole, these findings show that more than simply having the relevant tools is needed to access financial institutions and that services that can use these tools more effectively are needed. As a result, financial innovations in digital payment systems can support the access and depth of financial institutions and, therefore, economic development.
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