Economics at your fingertips  

The impact of contactless payment on cash usage at an early stage of diffusion

Tobias Trütsch ()
Additional contact information
Tobias Trütsch: University of St. Gallen, Holzstrasse 15

Swiss Journal of Economics and Statistics, 2020, vol. 156, issue 1, 1-35

Abstract: Abstract This paper explores the impact of contactless payment on consumers’ demand for cash at an early stage of diffusion. The specific devices that are investigated are debit and credit cards, in which the feature is embedded. A novel balanced panel dataset drawn from representative surveys on consumer payment behavior in the USA from 2009 to 2013 is analyzed to account for unobserved heterogeneity in cash usage. The results show that contactless credit and debit cards exert no statistically significant effect on cash usage after controlling for unobserved heterogeneity. Consumers’ decision to use contactless payment is an endogenous choice. Card-affined individuals replace conventional card payments with contactless card payments. Hence, the overall effect on cash usage remains unaffected.

Keywords: Contactless payment; Money demand; Cash usage; Credit cards; Debit cards (search for similar items in EconPapers)
JEL-codes: C33 D12 E41 E42 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)

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:

Ordering information: This journal article can be ordered from

DOI: 10.1186/s41937-020-00050-0

Access Statistics for this article

Swiss Journal of Economics and Statistics is currently edited by Rafael Lalive

More articles in Swiss Journal of Economics and Statistics from Springer, Swiss Society of Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2021-01-23
Handle: RePEc:spr:sjecst:v:156:y:2020:i:1:d:10.1186_s41937-020-00050-0