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Choosing how to pay: the influence of home country habits

Anneke Kosse and David-Jan Jansen

DNB Working Papers from Netherlands Central Bank, Research Department

Abstract: Is having a foreign background a relevant factor in choosing between payment instruments in consumer point-of-sale transactions? We analyze this question using a unique diary survey in which both participants with a Dutch and a foreign background documented their daily purchases. Payment habits acquired in home countries continue to affect the mode of payment after migration. First generation migrants born in cash-oriented economies are more likely to use cash in point-of-sale transactions. However, the second-generation has similar payment habits as individuals with a Dutch background. This finding suggests that payment behaviour is not passed on from generation to generation, but moulded by host country payment habits. Finally, we suggest that special information campaigns to increase debit card usage will not have clear net social benefits.

Keywords: consumer payments; habits; debit card; cash, migration (search for similar items in EconPapers)
JEL-codes: C25 D12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mig and nep-mkt
Date: 2011-12
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Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:328

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