THE INTEGRATION OF CASHLESS OPERATIONS IN STUDENT LIFE

ИНТЕГРАЦИЯ БЕЗНАЛИЧНЫХ ОПЕРАЦИЙ В СТУДЕНЧЕСКОЙ ЖИЗНИ

Скакова Нурайым

студент, факультет Бизнес-школы, Университет имени Сулеймана Демиреля (SDU),

РК, г. Алматы

Алимбекова Гаухар

научный руководитель, магистр бухгалтерского учета и аудита, Старший преподаватель, Университет имени Сулеймана Демиреля (SDU),

РК, г. Алматы

ABSTARCT

Cashless operations have become increasingly integrated into student life in recent years, as more and more schools and universities adopt digital payment systems to streamline transactions and reduce the use of cash on campus. The integration of cashless operations into student life has made transactions on campus more efficient and convenient, while also reducing the need for students to carry cash. Currently, digitalization has become an important aspect of our life and the demand for new digital formats is growing. The purpose of this research is to understand how students are used to cashless payments and whether it has become a habit or whether most students in SDU are still using cash.

АННОТАЦИЯ

В последние годы безналичные операции все больше интегрируются в студенческую жизнь, поскольку все больше и больше школ и университетов внедряют цифровые платежные системы для оптимизации транзакций и сокращения использования наличных денег в кампусе. Интеграция безналичных операций в студенческую жизнь сделала транзакции на территории кампуса более эффективными и удобными, а также снизила потребность студентов носить с собой наличные. В настоящее время цифровизация стала важным аспектом нашей жизни и спрос на новые цифровые форматы растет. Цель данного исследования — понять, насколько студенты привыкли к безналичным расчетам и стало ли это привычкой или большинство студентов СДУ все еще используют наличные.

Ключевые слова: Безналичные операции в РК, электронная коммерция в РК, мобильный маркетинг в РК, поколение X, Y, Z в РК, студенты СДУ.

Keywords: Cashless operations in KZ, e-commerce in KZ, mobile Marketing in KZ generation X, Y, Z in KZ, SDU students.

1. Introduction

Cashless operations have become an increasingly popular mode of payment for transactions of all types (Althea Storm 2022). In the context of student life, the integration of cashless operations into everyday transactions has brought about numerous benefits for both students and educational institutions. This paper will explore how cashless operations have been integrated into student life, the challenges and opportunities associated with such integration, and the impact of cashless operations on student life.

Cashless operations are the type of operations that are made without using cash. Examples of them can be paid with credit cards, using mobile applications, or bank transfers. In recent years, it is becoming more and more popular to use that kind of non-cash payment including the young and also the older generation. The main task of this research is the analysis of students, namely, students of Suleyman Demirel University.

One of the current trends in economic development is digitalization. Kazakhstan, like many countries around the world, has been embracing digitalization in recent years. The country has made significant progress in expanding internet access, developing e-government services, and promoting digital innovation. Digitalization is playing an increasingly important role in Kazakhstan's economy and society, and the government is committed to continuing its efforts to promote digital innovation and growth.

2. Literature Review

2.1. Cashless operations

Payments made via a cashless system are thought to be secure and practical. The term "cashless transaction" refers to financial operations that don't include the usage of actual money.

Many authors have written about cashless operations, expressing a wide range of opinions and perspectives on the topic. (Yuval,2011) has argued that cashless operations have the potential to create a more efficient and transparent economy, but also raise concerns about privacy and the concentration of power in the hands of a few large corporations. Electronic payments have become increasingly popular over the past few decades due to the convenience and speed they offer (Annikken,2023). With electronic payments, customers can make purchases or send money to others quickly and easily, from anywhere in the world, without having to physically go to a bank or ATM.

From a financial standpoint, electronic payments are a type of financial instrument that allows buyers and sellers to communicate electronically (Abrazhevich,2004). Electronic payment refers to any form of financial transaction that occurs online or through digital means, without the use of physical cash or checks. Electronic payments include debit and credit card transactions, online transfers, electronic checks, mobile payments, and digital wallets. Some common examples of electronic payment methods include PayPal, Venmo, Apple Pay, Google Pay, and Square Cash. Many businesses also offer their own electronic payment systems, allowing customers to pay for products or services online or through mobile apps.

Cashless operations have become increasingly common in Kazakhstan in recent years, as the country's financial sector has modernised and more businesses have adopted electronic payment methods. In fact, according to the National Bank of Kazakhstan, the number of cashless payments made in the country has been steadily increasing over the past few years. There are several electronic payment systems available in Kazakhstan, including online banking, mobile banking, and electronic wallets. These systems allow individuals and businesses to transfer money electronically, pay bills, and make purchases without using cash. The most commonly used electronic payment system in Kazakhstan is the Kaspi system, which was developed by a local bank and allows users to make payments using a mobile app or website. Other popular systems include QIWI and Yandex. Association of Financiers of Kazakhstan. (2017).

2.2. Digital Economy and Marketing

The digital economy and marketing are rapidly developing in Kazakhstan, driven by the country's growing technology sector and increasing access to the internet and mobile devices. Here are some key points on this topic:

Digital economy: Kazakhstan has identified the digital economy as a priority area for economic growth and has been investing in infrastructure, education, and innovation to support the development of the sector. The country has also implemented a number of legal and regulatory reforms to create a favourable business environment for digital companies.

E-commerce: The e-commerce market in Kazakhstan is growing rapidly, with more consumers shopping online and more businesses establishing an online presence. Popular e-commerce platforms in Kazakhstan include AliExpress, Lamoda, and Wildberries.

Social media: Social media usage is high in Kazakhstan, particularly among younger people. Popular platforms include VKontakte, Odnoklassniki, and Instagram. This presents an opportunity for businesses to engage with customers and promote their products and services through social media marketing.

The digital economy and marketing are becoming increasingly important in Kazakhstan, presenting opportunities for businesses to reach new customers and expand their operations in the country. Digital Kazakhstan seeks, in the medium term, to accelerate economic growth and improve quality of life through the use of digital technologies and, in the long term, to transition to a ‘fundamentally new development path’ grounded in the digital economy. Kazakhstan has set the ambitious goal to ensure 100 percent coverage of the country with high-quality internet and 95 percent with home broadband access networks by 2025 The Astana Times (2022).

In terms of marketing, companies in Kazakhstan are increasingly turning to digital channels to reach their target audiences. Social media marketing, search engine optimization (SEO), and Email marketing is some of the most popular tactics being used. Influencer marketing is also gaining traction, with local celebrities and social media personalities being leveraged to promote products and services. "In recent years, Kazakhstan has made significant progress in developing its digital infrastructure, including broadband connectivity, e-government services, and digital payment systems." (European Bank for Reconstruction and Development, 2021)

The government of Kazakhstan is actively promoting the development of the digital economy and marketing industry, with initiatives such as the Digital Kazakhstan program, which aims to create a favourable environment for the growth of the digital economy. Additionally, the government has implemented measures to attract foreign investment, such as tax incentives and streamlined business registration processes.

The trend of digitalization in marketing has influenced pricing policy too. The concept of dynamic pricing, which is actively used in the tourism sector when selling air tickets, and hotel rooms, has become relevant in other areas. Kaspi has created a program for users to accumulate a bonus when using Kaspi QR and other non-cash types of payments, while for sellers it has made it possible to issue interest-free instalments for their customers Kaspi.kz, (2022).

According to a survey organised among MasterCard users, 91% of respondents prefer contactless   payment (Patel, 2020). In the example of Kazakhstan, the report for February 2022 of the National Bank demonstrated that the volume of cashless payments used was 96.8 %, while the value was 81.2 % of the total amount NBK (2022).

2.3. Generation X, Y, Z

The generational groups of X, Y, and Z are based on birth years and cultural experiences. While there is some variation in the exact birth years that define each generation, the following is a common definition:

Generation X refers to individuals born between the mid-1960s and the early 1980s, while Generation Y, also known as millennials, are those born between the early 1980s and the mid-1990s. Generation Z, also called post-millennials, are those born after the mid-1990s up to the early 2010s.

Generation X: This generation in Kazakhstan may have grown up during the Soviet era and experienced the transition to a market economy in the 1990s. They may have been raised with traditional values of hard work, family, and community. Many in this generation may have pursued higher education and career opportunities, but also value work-life balance and family time. Peralta, E. (2015). Generation X: the small but financially powerful generation.

Generation Y/Millennials: Kazakhstan's Millennials grew up in a time of rapid globalisation, technological advances, and greater access to information. They may be more open to new experiences and ideas and are often characterised as digital natives who are comfortable with technology and social media. Many in this generation in Kazakhstan have pursued higher education and career opportunities, and may also prioritise work-life balance and social impact (ASIAN DEVELOPMENT BANK 2018).

Generation Z: Kazakhstan's Gen Z may have grown up in a more stable and prosperous period compared to previous generations, and have been raised with greater access to technology and the internet. They may be more diverse and globally minded and may prioritise individuality and social justice. Many in this generation in Kazakhstan may also be focused on entrepreneurship and creating their own path in life.

As for the different generations in Kazakhstan, it is likely that younger generations such as millennials and post-millennials are more comfortable using digital payment methods due to their greater exposure to technology. However, Generation X may also be adopting cashless payments as the benefits of convenience, security, and reduced transaction costs become more apparent. Kazakhstan's efforts to promote digital payments are likely to benefit all generations and help drive the country towards a more cashless economy.

Generation Z is the world's most materially well-off, technologically savvy, globally-connected_, and officially educated generation. Coming of age in the twenty-first century has given Generation Z a unique viewpoint, as they have been shaped by the Global Financial Crisis while simultaneously being globally linked and engaged through global companies and global technologies (Parment, 2011).

3. Research: Survey

The population for this research includes students who are currently enrolled in Suleyman Demirel University that have adopted cashless operations in their systems. For this research 30 responses are enough.

The instrument used for data collection was a self-administered survey. A self-administered survey is a questionnaire that is designed explicitly to be completed by a respondent without an interviewer’s assistance (or bias). Fowler, (2014). The survey was designed to collect both qualitative and quantitative data from the students. The questionnaire consists of closed-ended and open-ended questions that cover the following topics:

- The frequency of using cashless operations

- The types of cashless operations used

- The ease of using cashless operations

- The benefits and challenges of using cashless operations

The survey was conducted using an online platform, such as Google Forms to reach a larger number of participants and to facilitate data collection and analysis. The survey was distributed to the students via social media platforms such as Telegram, and other online channels. Almost 35 students have answered the survey.

Quantitative research results

The responses from 30 participants in our survey indicate that their personal experiences within the cashless ecosystem vary significantly. All of the respondents of the survey are students of SDU. Majority of answers were from female students (58,8%). Respondents are divided by the course of study, but 82,4% of students are in their 3rd year of study and the other 17,6% are the second-year students.

Exactly half of the students who answered the survey have a scholarship at the moment. I also wanted to find out if students have additional income besides the scholarship and many showed the income level result of 0-150000 tg per month. Approximately 40% of them indicated that they have no sources of income, while just a few students earn a significantly considerable amount (150000-250000). And only one person out of 35 showed the highest indicator of given income levels, that is, between 250000-300000. Most participants prefer cashless payments, which shows the fact that it is becoming popular and the percentage of such respondents is 79,4%.

Graph-1. Preference percentage of money type of SDU students

The survey revealed that a significant portion, 44,1%, of individuals are unwilling to return to using cash, whereas the percentage of those who wish to revert back is less than a half of that figure. This proves that cashless operations have become preferable for the students in SDU.

In respondent’s opinion, they changed their performance in different ways after the non-cash payment system appeared, this proves all the above facts. According to the survey, only 17,6% of people did not change anything at all. Most individuals purchase necessary items such as groceries (88,2%), clothes (76,5%), medication (47,1%), household items (70,6%), and other essential commodities through bank transfers.

Graph-2. Most frequently used things by students by cashless services (between 4 variations)

The pandemic has served as a considerable impact for the widespread adoption of digital transactions. As a result, two critical factors - the shift from cash to cashless payments and increase in trust to online platforms - have been significantly accelerated. Although asked if the student’s performance changed after quarantine, it turned out that half of the people used non-cash transition before the virus. 44,1% of them decided to make the transition from cash to non-cash after the pandemic situation and only 2 people are still using the cash. For the question “How quarantine time changed your opinion about cashless operations?” 47,1% of the answers were somewhat. In this case, it is impossible to say for sure whether the pandemic has affected the behaviour of students or not looking at these answers (50/50).

It was found that students spend more the money on the card rather than the cash and the percentage of it 88,2%. And, of course, there are still students who didn’t get used to cashless payments (the rest 11,8%). Reasons for that can be different: there can be difficulty in adapting to new technologies or it can be just inconvenient for them.

In addition, I asked what problems the users of cashless payments face while making transactions. Here are the results: Overspending - 63,6%; Technological dependency - 27,3%; Less privacy - 9,1%; Hacking - 0%; Scamming - 0%. Kaspi bank is, currently, the most popular bank among the SDU students, 34 out of 35 answered like this. The second most used bank is Halyk bank, as it is the bank on which the student’s scholarship falls every month.

Graph-3. Percentage (between 5 variations) of faced problems by students using cashless payments

Research aimed to investigate the degree to which SDU students use cashless payment methods in their daily lives, as well as their experiences and perceptions of these systems. The findings suggest that cashless options have become commonplace among students, with the majority of participants regularly using digital payment methods like mobile payment apps (Kaspi) and online banking. The convenience, speed, and security of cashless payments were cited as the primary benefits by our students, with many noting that they no longer carry cash due to the availability of digital options. While the use of cashless options is widespread, some students expressed concerns about security and privacy, as well as potential data breaches. A small number of participants also reported technical difficulties or compatibility issues when using cashless payment methods.

6. Conclusion

References:

1. Althea Storm "The Future of Cashless Payments" (2022) https://blog.hubspot.com/sales/future-of-cashless-payments?hubs_content=blog.hubspot.com%252Fsales%252Ffuture-of-cashless-payments&hubs_content-cta=Althea%2520Storm
2. Yuval Noah Harari, author of "Sapiens: A Brief History of Humankind," (2011) https://www.ynharari.com/book/sapiens-2/
3. Abrazhevich (2004). Book review: Electronic Payment Systems: A User-Centred Perspective and Interaction Design. https://pure.tue.nl/ws/portalfiles/portal/2396269/200411085.pdf
4. Report by the World Bank titled "Kazakhstan's Digital Economy” https://www.worldbank.org/en/country/kazakhstan
5. Kaspi.kz, (2022) https://ir.kaspi.kz/financial-information/
6. Patel, B. (2020). Mastercard Study Shows Consumers Globally Make the Move to Contactless Payments for Everyday Purchases, Seeking Touch-Free Payment Experiences. https://www.mastercard.com/news/press/press-releases/2020/april/mastercard-study-shows-consumers-globally-make-the-move-to-contactless-payments-for-everyday-purchases-seeking-touch-free-payment-experiences/
7. NBK (2022) National Bank of Kazakhstan https://nationalbank.kz/en/news/elektronnye-bankovskie-uslugi/13308
8. Astanatimes.com (2021). Non-Cash Payments Increase among Kazakh Residents, URL: https://astanatimes.com/2021/01/non-cash-payments-increase-among-kazakh-residents/
9. Peralta, E. (2015). Generation X: the small but financially powerful generation. Centro https://basis.net/blog/generation-x-the-small-but-mighty-generation
10. Parment, A. (2009). Die Generation Y-Mitarbeiter der Zukunft. Wiesbaden: Gabler. https://link.springer.com/book/10.1007/978-3-8349-8802-7
11. European Law Institute (2020) https://www.europeanlawinstitute.eu/membership/institutional-members/suleyman-demirel-university/
12. Thompson, S. K. (2012). Sampling. Oxford: Wiley. https://doi.org/10.1002/9781118162934
13. Fowler, F. J., Jr. (2014). Survey Research Methods (5th ed.). https://www.worldcat.org/title/survey-research-methods/oclc/870269905
14. Lee, Siang Yi, and Ahmad, Azhar (2020) An assessment on student’s readiness towards establishing a cashless society in the UUM campus. https://repo.uum.edu.my/id/eprint/28424
15. Dillman, D. A. (2011). Mail and Internet Surveys: The Tailored Design Method (3rd ed.). John Wiley & Sons. https://www.worldcat.org/title/mail-and-internet-surveys-the-tailored-design-method-2007-update-with-new-internet-visual-and-mixed-mode-guide/oclc/781242348
16. Smith, J., & Johnson, K. (2018). Survey of student experiences with academic advising. Journal of College Student Development, 59(3), 321-328. Retrieved from https://doi.org/10.1353/csd.2018.0029
17. Tourangeau, R., Rips, L. J., & Rasinski, K. (2000). The Psychology of Survey Response. Cambridge University Press. https://psycnet.apa.org/record/2000-03511-000