Estimating the Causal Effects of a Cashless Point Policy Using SCM and DID

Abstract

A governmental cashless point consumer refund program was implemented from October 1, 2019 to June 31, 2020 as part of a policy to promote cashless payments. This policy gave consumers a 2% or 5% (depending on the store) cashback in the form of points when they made purchases at small and medium-sized businesses, franchise chains, and convenience stores. In this paper, we examine whether this policy actually had an effect on promoting cashless usage among consumers. We used the SCM (synthetic control method) and DID (difference-in-differences) as our analysis methods.