Mobility restrictions and payment choices: The case of the Covid-19 pandemic

Santiago Carbó-Valverde, Pedro Cuadros-Solas (), Francisco Rodríguez-Fernández and José Juan Sánchez-Béjar
Authors registered in the RePEc Author Service: Santiago Carbo Valverde

Journal of Behavioral and Experimental Finance, 2023, vol. 40, issue C

Abstract: This paper examines the impact of the Covid-19 mobility restrictions on the payment choices at brick-and-mortar establishments. The asymmetries in the implementation of the Covid-19 mobility restrictions across the Spanish provinces serves as a quasi-natural experiment. The findings show that the severity of the mobility restrictions had an impact on payment choices. Individuals in areas with more stringent restrictions were less likely to use cash. The effect of the mobility restrictions on cash usage was larger among those with lower financial education. However, the severity of the mobility restrictions did not significantly affect the adoption of the most sophisticated digital payment methods like digital wallets. Consumer concerns about Covid-19 transmission through cash did not drive these results. Using a recent survey conducted in a post-pandemic context, where mobility restrictions have been lifted, the impact of mobility restrictions on cash usage has persisted. The main results hold after several robustness tests.

Keywords: Covid-19; Payments; Mobility restrictions; Cash (search for similar items in EconPapers)
JEL-codes: D12 E21 E42 O33 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:40:y:2023:i:c:s2214635023000643

DOI: 10.1016/j.jbef.2023.100850

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