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Consumer Awareness and the Use of Payment Media: Evidence from Young Finnish Consumers

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  • Hyytinen Ari

    (University of Jyväskylä)

  • Takalo Tuomas

    ()
    (Monetary Policy and Research Department, Bank of Finland, Faculty of Economics, University of Cambridge, School of Business and Economics, University of Jyväskylä)

Abstract

We provide evidence that increasing consumer awareness may have been underlying the rise of debit card use. We find that consumers typically use multiple payment media and that this behavior is closely related to the use of debit cards besides cash. Moreover, it turns out that the use of multiple payment media is directly related to consumer awareness but that not controlling for the endogeneity of awareness can bias its effect downwards. Conditional on the use of multiple payment methods, however, awareness does not distinguish those making debit a primary payment method from those making it secondary to cash.

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Bibliographic Info

Article provided by De Gruyter in its journal Review of Network Economics.

Volume (Year): 8 (2009)
Issue (Month): 2 (June)
Pages: 1-25

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Handle: RePEc:bpj:rneart:v:8:y:2009:i:2:n:3

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Cited by:
  1. Anneke Kosse & David-Jan Jansen, 2011. "Choosing how to pay: the influence of home country habits," DNB Working Papers 328, Netherlands Central Bank, Research Department.
  2. Kopsakangas-Savolainen, Maria & Takalo, Tuomas, 2012. "Competition before sunset: The case of the Finnish ATM market," Research Discussion Papers 32/2012, Bank of Finland.
  3. Anneke Kosse, 2013. "The Safety of Cash and Debit Cards: A Study on the Perception and Behavior of Dutch Consumers," International Journal of Central Banking, International Journal of Central Banking, vol. 9(4), pages 77-98, December.
  4. Rochet, Jean-Charles & Wright, Julian, 2009. "Credit card interchange fees," Working Paper Series 1138, European Central Bank.

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