The irrationality of payment behaviour
AbstractDespite the efforts that commercial banks have made to promote the use of debit cards and the introduction of new payment methods, the migration from cash to electronic payment methods is not proceeding as quickly as sometimes expected. Why do people pay by cash on one occasion and by bank card on another? How conscious is people’s decision-making? How rational are their reasons for choosing one method over another? For policy makers at a central bank it is relevant to have insight into the psychological aspects and effects of payment method choice, because it provides a pointer to the rules that payment methods will play in the future. Also these insights are helpful if an authority wants to encourage the usage of a specific means of payment.
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 InfoPaper provided by Netherlands Central Bank, Research Department in its series DNB Occasional Studies with number 1104.
Date of creation: Jul 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-23 (All new papers)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rob Vet).
If references are entirely missing, you can add them using this form.