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Choosing how to pay: The influence of foreign backgrounds

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  • Kosse, Anneke
  • Jansen, David-Jan

Abstract

Is having a foreign background a relevant factor in choosing between payment instruments in consumer point-of-sale transactions after migration? We analyze this question using a unique diary survey in which both participants with a Dutch and a foreign background documented their daily purchases. We present several pieces of evidence suggesting that foreign backgrounds still influence the choice between payment instruments after migration to the Netherlands. For instance, we find that first-generation migrants from a number of countries that can be seen as cash-oriented are more likely to use cash in the Netherlands. At the same time, second-generation migrants have similar payment habits as individuals with a Dutch background. This finding suggests that payment behavior is not passed on between generations, but affected by host country payment habits. Finally, we suggest that, in this context, special information campaigns to increase debit card usage will not have clear net social benefits.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 37 (2013)
Issue (Month): 3 ()
Pages: 989-998

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Handle: RePEc:eee:jbfina:v:37:y:2013:i:3:p:989-998

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Web page: http://www.elsevier.com/locate/jbf

Related research

Keywords: Consumer payments; Habits; Debit card; Cash; Migration;

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References

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Citations

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Cited by:
  1. 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.
  2. John Bagnall & David Bounie & Kim Huynh & Anneke Kosse & Tobias Schmidt & Scott Schuh & Helmut Stix, 2014. "Consumer cash usage: A cross-country comparison with payment diary survey data," DNB Working Papers 422, Netherlands Central Bank, Research Department.
  3. Carlos Arango & Yassine Bouhdaoui & David Bounie & Martina Eschelbach & Lola Hern�ndez, 2014. "Cash management and payment choices: A simulation model with international comparisons," DNB Working Papers 409, Netherlands Central Bank, Research Department.
  4. Eschelbach, Martina & Schmidt, Tobias, 2013. "Precautionary motives in short-term cash management: Evidence from German POS transactions," Discussion Papers 38/2013, Deutsche Bundesbank, Research Centre.

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