In love with the debit card but still married to cash |
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Authors: | Carin van der Cruijsen Lola Hernandez Nicole Jonker |
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Institution: | De Nederlandsche Bank, Amsterdam, The Netherlands |
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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. |
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Keywords: | Payment patterns preferences actual behaviour habits diary data |
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