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Card-Sales Response to Merchant Contactless Payment Acceptance

David Bounie () and Youssouf Camara
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David Bounie: SES - Département Sciences Economiques et Sociales - Télécom ParisTech, ECOGE - Economie Gestion - I3, une unité mixte de recherche CNRS (UMR 9217) - Institut interdisciplinaire de l’innovation - X - École polytechnique - Télécom ParisTech - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique
Youssouf Camara: IP Paris - Institut Polytechnique de Paris

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Abstract: Disruptive innovations in digital payments are happening in a large number of countries around the world. In this paper, we investigate how merchants' acceptance of a contactless card technology affects card sales. Using score matching and difference-in-difference techniques on a unique sample of about 275,580 merchants in France, we find that accepting contactless payments in 2018 increases the card-sales amount by 15.3 percent on average (and by 17.1 percent the card-sales count) compared to merchants who do not accept contactless payments. We also find evidence that accepting contactless payments exerts a positive spillover of about 1.3 percent in the amount of contact card sales, and thus significantly increases the average annual card-sales amount and count for small merchants and new entrepreneurs

Keywords: difference- in-difference; digital payments; contactless cards (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-ban and nep-pay
Note: View the original document on HAL open archive server: https://hal.telecom-paris.fr/hal-02296302v2
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Published in Journal of Banking and Finance, Elsevier, In press, ⟨10.1016/j.jbankfin.2020.105938⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02296302

DOI: 10.1016/j.jbankfin.2020.105938

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