Determinants of Benefits in the Retail Payments Market: Evidence from Russian Consumers

Abstract

This study identifies the determinants of consumer benefits values in the retail payments market. Using a mix of quantitative (nation-wide representative survey of 1500 individuals) and qualitative inputs (8 focus groups and 32 in-depth interviews), this study finds robust evidence which supports the importance of internal and external user characteristics for the benefits value explanation. Other factors exhibit partial or no correlation with benefits values. Total welfare is efficiently distributed across the market. Findings imply new factors affecting consumer behavior in the retail payments market and suggest a basis for the reassessment of marketing and regulatory strategies.