The use of cash and debit cards as payment instruments in Colombia

Constanza Martínez

Lecturas de Economía, 2019, issue 90, 71-95

Abstract: This paper studies the impact that the popularisation of debit cards has had on the payment preferences of retail banking clients with deposit accounts in Colombia. To this end, simultaneous equation models are used to analyse the usual payments and retail purchases of non-durable goods that these people execute in person, as a function of macroeconomic variables, the payments infrastructure, and idiosyncratic variables. The results underline the relevance of the short-term interest rate, the payments infrastructure, and the financial transaction tax on the preferences for payment instruments of this population. Particularly, it is observed that the rise in the number of point-of-sale devices has started to represent a threat to the prevalence of cash, but that idiosyncratic factors such as insecurity and informality incentivise its usage.

Keywords: money demand; debit card; transaction costs (search for similar items in EconPapers)
JEL-codes: D23 E41 G21 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://aprendeenlinea.udea.edu.co/revistas/index.p ... /article/view/336847 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lde:journl:y:2019:i:90:p:71-95

Ordering information: This journal article can be ordered from
Lecturas de Economía, Departamento de Economía, Calle 67, 53-108, Medellin 050010, Colombia.

DOI: 10.17533/udea.le.n90a03

Access Statistics for this article

Lecturas de Economía is currently edited by Carlos Andrés Vasco Correa

More articles in Lecturas de Economía from Universidad de Antioquia, Departamento de Economía Contact information at EDIRC.
Bibliographic data for series maintained by Carlos Andrés Vasco Correa ().