The convenience of electronic payments and consumer cash demand

• 成果类型: Article
• 署名作者: Brown, Martin; Hentschel, Nicole; Mettler, Hannes; Stix, Helmut
• 署名单位: Study Center Gerzensee; University of St Gallen; Oesterreichische Nationalbank (OeNB)
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2022.06.001
• 发表日期: 2022
• 页码: 86-102
• 关键词: Financial innovation; Cash management; Payment choice; Pre-analysis plan

摘要

How does the improved convenience of electronic payments affect consumer payment choice and cash demand? We study the staggered, quasi-random introduction of contact -less debit cards by a retail bank. We use account-level data and compare transactions which are eligible for contactless authentication to transactions which are not. We identify a significant convenience effect on debit card use at the intensive margin. The convenience elasticity is strongest among younger clients. Treatment effects increase over time, coincid-ing with increasing merchant acceptance. The effect on cash demand is economically small and statistically insignificant. We also find no effect on consumer spending. (c) 2022 Elsevier B.V. All rights reserved.