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Cash usage in the Netherlands: How much, where, when, who and whenever one wants?

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  • Nicole Jonker
  • Anneke Kosse
  • Lola Hern�ndez

Abstract

Having accurate information on cash usage is essential for monitoring the substitution process of cash by cards and for assessing the cost efficiency of the payment system. Moreover, estimates on cash usage reflect the transaction demand for cash. This is useful for central banks which are responsible for producing and issuing banknotes. The latest estimates of the number and value of cash payments made in the Netherlands date from 2007. How has cash usage developed since then? In what branches do consumers use cash and what type of consumers still rely heavily on cash? These questions and others are analysed using a one-day diary survey held in September 2010 in which 7,499 Dutch consumers documented their daily transactions. We find that Dutch consumers made about 5 billion cash payments in 2010. Although the majority of purchases are paid in cash, its role has steadily decreased due to increasing debit card usage. Cash is mainly used for low-value transactions, and especially the elderly and lower educated people still rely heavily on cash. Overall, the Dutch are able to pay the way they want. Only in 3% of transactions they had no choice but to use another means of payment as the one preferred.

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Bibliographic Info

Paper provided by Netherlands Central Bank, Research Department in its series DNB Occasional Studies with number 1002.

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Date of creation: Mar 2012
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Handle: RePEc:dnb:dnbocs:1002

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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. Kosse, Anneke & Jansen, David-Jan, 2013. "Choosing how to pay: The influence of foreign backgrounds," Journal of Banking & Finance, Elsevier, vol. 37(3), pages 989-998.
  3. Carlos Arango & Yassine Bouhdaoui & David Bounie & Martina Eschelbach & Lola Hernández, 2013. "Cash Management and Payment Choices: A Simulation Model with International Comparisons," Working Papers 13-53, Bank of Canada.
  4. Nicole Jonker, 2013. "Social costs of POS payments in the Netherlands 2002-2012: Efficiency gains from increased debit card usage," DNB Occasional Studies 1102, Netherlands Central Bank, Research Department.
  5. Peter Mooslechner & Helmut Stix & Karin Wagner, 2012. "The Use of Payment Instruments in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 53–77.
  6. Janet Hua Jiang & Enchuan Shao, 2014. "Understanding the Cash Demand Puzzle," Working Papers 14-22, Bank of Canada.

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