This study aims to analyze the effect of noncash payments on money circulation and inflation during COVID-19 pandemic. It also examines the effects of money circulation on inflation. To determine the impact of non-cash payments on inflation, money circulation is used as an intervening variable during the COVID-19 pandemic (2017-2020). The data was collected using various techniques, including observation and documentation. Furthermore, descriptive analysis, classical assumption testing, simple linear regression analysis (model 1), multiple linear regression analysis (model 2), and hypothesis testing were used to analyze the collected data. The results showed that non-cash payments have significant positive effects on money circulation and inflation rate, while money circulation has a significant effect on inflation.The mediation test results using the Sobel showed that the amount of money circulation might partially mediate non-cash payments on the inflation rate in Indonesia during the COVID-19 pandemic.

Keywords : Non-Cash Payments, Inflation, and Money Circulation.