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Cash or Card? Unravelling the Role of Socio-Psychological Factors

Author

Listed:
  • Carin Cruijsen

    (De Nederlandsche Bank)

  • Frank Horst

    (De Nederlandsche Bank)

Abstract

We build a model of consumers’ payment behaviour that includes socio-psychological factors and test it empirically by focussing on the choice between cash and electronic payments in the Netherlands. Our model outperforms the traditional model used to explain payment usage. Moreover, we provide useful insights for those who want to understand and steer payment behaviour. How consumers actually pay mainly depends on how they intend to pay and their payment habits. Attitudes, feelings and perceived best-suited payment behaviour are key factors related to payment intentions. Social norms and perceived control over the payment instrument choice matter too.

Suggested Citation

  • Carin Cruijsen & Frank Horst, 2019. "Cash or Card? Unravelling the Role of Socio-Psychological Factors," De Economist, Springer, vol. 167(2), pages 145-175, June.
    • Handle: RePEc:kap:decono:v:167:y:2019:i:2:d:10.1007_s10645-019-09340-2
    DOI: 10.1007/s10645-019-09340-2
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    References listed on IDEAS

    as
    1. Carin van der Cruijsen & Lola Hernandez & Nicole Jonker, 2017. "In love with the debit card but still married to cash," Applied Economics, Taylor & Francis Journals, vol. 49(30), pages 2989-3004, June.
    2. Arango-Arango, Carlos A. & Bouhdaoui, Yassine & Bounie, David & Eschelbach, Martina & Hernandez, Lola, 2018. "Cash remains top-of-wallet! International evidence from payment diaries," Economic Modelling, Elsevier, vol. 69(C), pages 38-48.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Justus Meyer & Federica Teppa, 2023. "Euro area consumers' payment behaviour and banking digitalisation," Working Papers 772, DNB.
    2. Carin van der Cruijsen & Marie-Claire Broekhoff, 2024. "Gender gaps in the world of payments," Working Papers 805, DNB.
    3. Huosong Xia & Yangmei Gao & Justin Zuopeng Zhang, 2023. "Understanding the adoption context of China’s digital currency electronic payment," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-27, December.
    4. Kotkowski, Radoslaw & Polasik, Michal, 2021. "COVID-19 pandemic increases the divide between cash and cashless payment users in Europe," Economics Letters, Elsevier, vol. 209(C).
    5. Jonker, Nicole & van der Cruijsen, Carin & Bijlsma, Michiel & Bolt, Wilko, 2022. "Pandemic payment patterns," Journal of Banking & Finance, Elsevier, vol. 143(C).
    6. Michiel Bijlsma & Carin Cruijsen & Nicole Jonker, 2023. "Consumer Willingness to Share Payments Data: Trust for Sale?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 64(1), pages 41-80, August.
    7. Carin Cruijsen & Joris Knoben, 2021. "Ctrl+C Ctrl+Pay: Do People Mirror Electronic Payment Behavior of their Peers?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 59(1), pages 69-96, April.
    8. Saman Attiq & Amanda M. Y. Chu & Rauf I. Azam & Wing-Keung Wong & Sumia Mumtaz, 2021. "Antecedents of Consumer Food Waste Reduction Behavior: Psychological and Financial Concerns through the Lens of the Theory of Interpersonal Behavior," IJERPH, MDPI, vol. 18(23), pages 1-18, November.
    9. Michiel Bijlsma & Carin van der Cruijsen & Nicole Jonker, 2021. "Not all data are created equal - Data sharing and privacy," Working Papers 728, DNB.
    10. Jacek Pietrucha & Grzegorz Maciejewski, 2020. "Precautionary Demand for Cash and Perceived Risk of Electronic Payments," Sustainability, MDPI, vol. 12(19), pages 1-25, September.
    11. Marie-Claire Broekhoff & Carin van der Cruijsen, 2022. "Paying in a blink of an eye: it hurts less, but you spend more," Working Papers 760, DNB.
    12. Yulia Titova & Delia Cornea & Sébastien Lemeunier, 2021. "What Factors Keep Cash Alive in the European Union?," De Economist, Springer, vol. 169(3), pages 291-317, August.
    13. Batiz-Lazo, Bernardo & Maixe-Altes, J Carles & Peon, David, 2023. "Behavioral drivers of cashless payments in Africa," MPRA Paper 117984, University Library of Munich, Germany.

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    More about this item

    Keywords

    Payment choice; Socio-psychological factors; Consumer survey; Cash; Cards;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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