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Retail Payment Practices. How They Have Evolved in Recent Times and Where They Might Be Going

Author

Listed:
  • Cronin, David

    (Central Bank of Ireland)

  • McGuinness, Anne

    (Central Bank of Ireland)

Abstract

The relative importance of different retail payment media varies across countries. There are, however, some trends in the data that are evident pan-nationally: cash seems to be playing a lesser role in payment activity; among non-cash forms of payment, there has been a substitution away from paper-based to electronic instruments; and debit cards are being more heavily used in recent years. These developments indicate progress towards a more efficient payment system as older, more expensive payment instruments are supplanted by newer, cheaper options. Viewpoints on what the future may hold in store for retail payments, including perspectives on the impact that new electronic technologies designed for making small-value payments may have on cash usage, are considered. It is argued that while its usage may decline over time, cash is unlikely to disappear from the payments landscape soon.

Suggested Citation

  • Cronin, David & McGuinness, Anne, 2010. "Retail Payment Practices. How They Have Evolved in Recent Times and Where They Might Be Going," Quarterly Bulletin Articles, Central Bank of Ireland, pages 56-82, April.
  • Handle: RePEc:cbi:qtbart:y:2010:m:04:p:56-82
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    File URL: https://centralbank.ie/docs/default-source/publications/quarterly-bulletins/qb-archive/2010/qb2-2010.pdf?sfvrsn=8#page=51
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    References listed on IDEAS

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    6. Humphrey, David B & Kim, Moshe & Vale, Bent, 2001. "Realizing the Gains from Electronic Payments: Costs, Pricing, and Payment Choice," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(2), pages 216-234, May.
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    12. Humphrey, David & Kaloudis, Aris & Owre, Grete, 2004. "The future of cash: falling legal use and implications for government policy," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 14(3), pages 221-233, July.
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    Cited by:

    1. Łukasz Goczek & Bartosz Witkowski, 2015. "Determinants of the number of card transactions," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 39, pages 199-212.
    2. Łukasz Goczek & Bartosz Witkowski, 2016. "Determinants of card payments," Applied Economics, Taylor & Francis Journals, vol. 48(16), pages 1530-1543, April.

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