The Impact of ATM Transactions and Cashless Payments on Cash Demand in Austria
AbstractThe aims of this study are twofold: to determine the levels of cash inventories held by Austrians and to examine how ATM transactions and cashless payments affect their demand for cash. The key results of this study are based on survey data on the cash withdrawal habits of Austrians aged 14 and over. The results suggest that the cash held by this group of individuals for transaction purposes accounts for only a relatively small share of the total cash in circulation (approximately 10%). Furthermore, it can be seen that individuals who use ATMs withdraw cash more frequently and consequently hold significantly smaller amounts of cash than individuals who do not use ATMs. The study also deals with cashless payments, which were found to have had an impact on the use of cash: the share of cash payments has fallen since 2000 (projections suggest a decline of some 6 to 7 percentage points from 2000 to 2002). This development is attributable primarily to robust growth in debit card transactions. Despite the rise in cashless payments, currently the share of cash payments (in value terms) is likely to be above 70%, so that cash remains by far the most important means of payment in Austria. The results of this study therefore show that ATM transactions and the increased use of cashless payments have had a significant impact on cash demand in Austria and will probably continue to do so in future. Since, however, cash withdrawal and payment habits are unlikely to change overnight, this development should not have much impact on monetary policy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Oesterreichische Nationalbank (Austrian Central Bank) in its journal Monetary Policy & the Economy.
Volume (Year): (2004)
Issue (Month): 1 ()
Postal: Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giovanni Dell'Ariccia & Jeromin Zettelmeyer & Isabel Schnabel, 2002. "Moral Hazard and International Crisis Lending: A Test," IMF Working Papers 02/181, International Monetary Fund.
- Stanley Fischer, 1999. "On the Need for an International Lender of Last Resort," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 85-104, Fall.
- Sebastian Edwards, 2002.
"Does the Current Account Matter?,"
in: Preventing Currency Crises in Emerging Markets, pages 21-76
National Bureau of Economic Research, Inc.
- Roberto Chang & Andres Velasco, 1998. "Financial Crises in Emerging Markets," NBER Working Papers 6606, National Bureau of Economic Research, Inc.
- Stanley Fischer, 2002. "Financial Crises and Reform of the International Financial System," NBER Working Papers 9297, National Bureau of Economic Research, Inc.
- Bulow, Jeremy & Rogoff, Kenneth, 1990. "Cleaning Up Third World Debt without Getting Taken to the Cleaners," Journal of Economic Perspectives, American Economic Association, vol. 4(1), pages 31-42, Winter.
- Eichengreen, Barry & Kletzer, Kenneth & Mody, Ashoka, 2003.
"Crisis Resolution: Next Steps,"
Santa Cruz Center for International Economics, Working Paper Series
qt4cj974r4, Center for International Economics, UC Santa Cruz.
- Barry Eichengreen & Kenneth Kletzer, 2003. "Crisis Resolution: Next Steps," NBER Working Papers 10095, National Bureau of Economic Research, Inc.
- Eichengreen, Barry & Kletzer, Kenneth & Mody, Ashoka, 2003. "Crisis Resolution: Next Steps," Santa Cruz Department of Economics, Working Paper Series qt4cj974r4, Department of Economics, UC Santa Cruz.
- Barry Eichengreen & Kenneth Kletzer & Ashoka Mody, 2003. "Crisis resolution: next steps," Pacific Basin Working Paper Series 03-05, Federal Reserve Bank of San Francisco.
- Eduardo Borensztein & Paolo Mauro, 2002. "Reviving the Case for GDP-Indexed Bonds," IMF Policy Discussion Papers 02/10, International Monetary Fund.
- Morris Goldstein, 2003. "Debt Sustainability, Brazil, and the IMF," Working Paper Series WP03-1, Peterson Institute for International Economics.
- Kenneth Kletzer & Barry J. Eichengreen & Ashoka Mody, 2003. "Crisis Resolution," IMF Working Papers 03/196, International Monetary Fund.
- Roberto Chang & Andres Velasco, 1998. "Financial crises in emerging markets: a canonical model," Working Paper 98-10, Federal Reserve Bank of Atlanta.
- TÃ¶rbjÃ¶rn I. Becker & Anthony J. Richards & Yunyong Thaicharoen, 2001. "Bond Restructuring and Moral Hazard," IMF Working Papers 01/92, International Monetary Fund.
- Brad Setser & Nouriel Roubini & Christian Keller & Mark Allen & Christoph B. Rosenberg, 2002. "A Balance Sheet Approach to Financial Crisis," IMF Working Papers 02/210, International Monetary Fund.
- Cecile Bastidon & Philippe Gilles & Nicolas Huchet, 2008. "A Selective Bail-Out International Lending of Last Resort Model," Annals of Economics and Finance, Society for AEF, vol. 9(1), pages 103-114, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudia Kwapil).
If references are entirely missing, you can add them using this form.