In love with the debit card but still married to cash

Carin Cruijsen, Lola Hernandez and Nicole Jonker

Applied Economics, 2017, vol. 49, issue 30, 2989-3004

Abstract: Using shopping diary survey data, we show that changing payment patterns is a challenging task; even when consumers have fallen in love with a new payment instrument, they find it hard to divorce from their old payment instrument. We find a discrepancy between how consumers prefer to pay and how they actually pay. Half of the consumers who prefer the debit card to cash don’t use the debit card to pay a majority of their point-of-sale transactions. Our regression results show that the habit of paying cash plays a significant role explaining the presence of a gap.

Date: 2017
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DOI: 10.1080/00036846.2016.1251568

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