Easier said than done: why Italians pay in cash while preferring cashless

Alberto Di Iorio () and Giorgia Rocco ()
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Alberto Di Iorio: Bank of Italy
Giorgia Rocco: Bank of Italy

No 731, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: In this study we use data from the 2019 Study on the Payment Attitudes of Consumers in the Euro area (SPACE) to analyse the main drivers of payment choices at the point of sale (POS) in Italy. We find that transaction-related features are the most important drivers of payment choice at the POS, while individual consumer preferences play a minor role. We also document that consumers often pay in cash, even though they would prefer to use a different payment instrument, due to a lack of acceptance of alternative instruments by merchants, especially for low-value transactions. Finally, consumers’ digital skills are found to be a relevant factor in payment habits since they affect preferences and reduce the likelihood of cash usage, especially for those groups that tend to use it more, such as women and residents in the South.

Keywords: payment habits; consumer choice; payment preferences; cash; payment cards; survey data; diary data (search for similar items in EconPapers)
JEL-codes: D12 E58 G02 (search for similar items in EconPapers)
Date: 2022-11
New Economics Papers: this item is included in nep-ban, nep-mon and nep-pay
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_731_22

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