IDEAS home Printed from https://ideas.repec.org/a/bfr/quarte/201822002.html
   My bibliography  Save this article

Use of cash in France: the payment method of choice for low-value purchases

Author

Listed:
  • Emmanuelle Politronacci
  • Adeline Moret
  • David Bounie
  • Abel François

Abstract

This article exploits French data from a survey of cash usage in the euro area, which was published in 2017 on behalf of the European Central Bank (ECB). Cash is the preferred method of payment at the point of sale in the euro area, accounting for three out of every four transactions and more than half of the total value of purchases. The survey results nonetheless vary across countries, with France in particular showing a high concentration of cash usage for small purchases, coupled with a strong predilection for cashless means of payment. Among the determinants of cash usage, sociodemographic criteria (gender, age, income and profession of consumers) are found to have very little impact. However, transaction characteristics play a predominant role, with the share of cash payments diminishing as the value of the purchase rises, and increasing for purchases in shops for day-to-day items.

Suggested Citation

  • Emmanuelle Politronacci & Adeline Moret & David Bounie & Abel François, 2018. "Use of cash in France: the payment method of choice for low-value purchases," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 220, pages 1-9, November-.
  • Handle: RePEc:bfr:quarte:2018:220:02
    as

    Download full text from publisher

    File URL: https://publications.banque-france.fr/sites/default/files/medias/documents/818396_bdf220-2_en_v5.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. John Bagnall & David Bounie & Kim P. Huynh & Anneke Kosse & Tobias Schmidt & Scott Schuh, 2016. "Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data," International Journal of Central Banking, International Journal of Central Banking, vol. 12(4), pages 1-61, December.
    2. David Bounie & Marc Bourreau & Abel François & Marianne Verdier, 2008. "La détention et l’usage des instruments de paiement en France," Revue d'Économie Financière, Programme National Persée, vol. 91(1), pages 53-76.
    3. Hayashi Fumiko & Klee Elizabeth, 2003. "Technology Adoption and Consumer Payments: Evidence from Survey Data," Review of Network Economics, De Gruyter, vol. 2(2), pages 1-16, June.
    4. Joanna Stavins, 2016. "The effect of demographics on payment behavior: panel data with sample selection," Working Papers 16-5, Federal Reserve Bank of Boston.
    5. Esselink, Henk & Gijsel, Lola Hernandez-van, 2017. "The use of cash by households in the euro area," Occasional Paper Series 201, European Central Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tamás Végsõ, 2020. "Comparative Analysis of the Changes in Cash Demand in Hungary," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 19(1), pages 90-118.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Bounie & Abel François & Emmanuelle Politronacci & Adeline Moret, 2018. "L’usage des espèces en France : priorité aux transactions de faible valeur," Post-Print hal-02068735, HAL.
    2. Carin van der Cruijsen & Joris Knoben, 2018. "Ctrl+C Ctrl+pay: Do people mirror payment behaviour of their peers?," DNB Working Papers 611, Netherlands Central Bank, Research Department.
    3. Katrin Assenmacher & Franz Seitz & Jörn Tenhofen, 2019. "The demand for Swiss banknotes: some new evidence," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 155(1), pages 1-22, December.
    4. Giorgia Rocco, 2019. "The use of cash in Italy: evidence from the ECB Study on the use of cash by households," Questioni di Economia e Finanza (Occasional Papers) 481, Bank of Italy, Economic Research and International Relations Area.
    5. Świecka, Beata & Terefenko, Paweł & Paprotny, Dominik, 2021. "Transaction factors’ influence on the choice of payment by Polish consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    6. Guerino Ardizzi & Andrea Nobili & Giorgia Rocco, 2020. "A game changer in payment habits: evidence from daily data during a pandemic," Questioni di Economia e Finanza (Occasional Papers) 591, Bank of Italy, Economic Research and International Relations Area.
    7. Emanuele Borgonovo & Stefano Caselli & Alessandra Cillo & Donato Masciandaro & Giovanno Rabitti, 2018. "Cryptocurrencies, central bank digital cash, traditional money: does privacy matter?," BAFFI CAREFIN Working Papers 1895, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    8. Ben Lockwood & Erez Yerushalmi, 2019. "How should payment services be taxed?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(1), pages 21-47, June.
    9. Martin Brown & Nicole Hentschel & Hannes Mettler & Helmut Stix, 2020. "Financial Innovation, Payment Choice and Cash Demand – Causal Evidence from the Staggered Introduction of Contactless Debit Cards," Working Papers 230, Oesterreichische Nationalbank (Austrian Central Bank).
    10. Joanna Stavins, 2017. "How do consumers make their payment choices?," Research Data Report 17-1, Federal Reserve Bank of Boston.
    11. Doris Ritzberger-Grünwald & Helmut Stix, 2018. "How Austrians bank and pay in an increasingly digitalized world – results from an OeNB survey," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3/18, pages 52-89.
    12. Polasik, Michał & Huterska, Agnieszka & Iftikhar, Rehan & Mikula, Štěpán, 2020. "The impact of Payment Services Directive 2 on the PayTech sector development in Europe," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 385-401.
    13. António Rua, 2019. "Modelling the Demand for Euro Banknotes," Working Papers w201905, Banco de Portugal, Economics and Research Department.
    14. David Bounie & Abel François & Leo Van Hove, 2017. "Consumer Payment Preferences, Network Externalities, and Merchant Card Acceptance: An Empirical Investigation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 51(3), pages 257-290, November.
    15. Beata Swiecka & Simon Grima, 2019. "Factors Affecting the Consumers’ Choice of Payment Instrument in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 179-198.
    16. Uhl, Matthias, 2020. "Coin migration between Germany and other euro area countries," Discussion Papers 49/2020, Deutsche Bundesbank.
    17. Sean Connolly & Joanna Stavins, 2015. "Payment instrument adoption and use in the United States, 2009–2013, by consumers' demographic characteristics," Research Data Report 15-6, Federal Reserve Bank of Boston.
    18. Fujiki, Hiroshi & Tanaka, Migiwa, 2018. "How do we choose to pay using evolving retail payment technologies? Evidence from Japan," Journal of the Japanese and International Economies, Elsevier, vol. 49(C), pages 85-99.
    19. Francisco J. Buera & Juan Pablo Nicolini, 2020. "Liquidity Traps and Monetary Policy: Managing a Credit Crunch," American Economic Journal: Macroeconomics, American Economic Association, vol. 12(3), pages 110-138, July.
    20. Janet Hua Jiang & Enchuan Shao, 2014. "Understanding the Cash Demand Puzzle," Staff Working Papers 14-22, Bank of Canada.

    More about this item

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bfr:quarte:2018:220:02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael brassart). General contact details of provider: https://edirc.repec.org/data/bdfgvfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.