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The impact of payment method on shopping behaviour among low income consumers

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  • Greenacre, Luke
  • Akbar, Skye

Abstract

It is well known that certain payment methods, such as credit and debit cards, can increase consumer spending. For many low income consumers, who cannot typically increase their spend, the relationship between payment method and spending has not been empirically examined. Using grocery store sales data, this research takes advantage of the introduction of a geographically-targeted Cashless Debit Card for welfare recipients in Australia to investigate the impact of payment methods on spending behaviour.

Suggested Citation

  • Greenacre, Luke & Akbar, Skye, 2019. "The impact of payment method on shopping behaviour among low income consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 87-93.
    • Handle: RePEc:eee:joreco:v:47:y:2019:i:c:p:87-93
    DOI: 10.1016/j.jretconser.2018.11.004
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    Cited by:

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    2. Dash, Ganesh & Sharma, Kiran & Yadav, Neha, 2023. "The diffusion of mobile payments: Profiling the adopters and non-adopters, Roger's way," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    3. Liu, Yunxin & Dewitte, Siegfried, 2021. "A replication study of the credit card effect on spending behavior and an extension to mobile payments," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    4. Yinhong Yao & Jianping Li, 2022. "Operational risk assessment of third-party payment platforms: a case study of China," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-20, December.
    5. Jain, Nikunj Kumar & Gajjar, Hasmukh & Shah, Bhavin J., 2021. "Electronic logistics service quality and repurchase intention in e-tailing: Catalytic role of shopping satisfaction, payment options, gender and returning experience," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
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    7. ETTIS Saïd Aboubaker & ELDABET Mahmoud Mohamed, 2022. "The Move Towards Cashless Society: How To Improve Consumers’ Use Of Bank Cards In Retail Stores?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(1), pages 24-10, April.
    8. Gobinda Roy & Rajarshi Debnath & Partha Sarathi Mitra & Avinash K. Shrivastava, 2021. "Analytical study of low-income consumers’ purchase behaviour for developing marketing strategy," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(5), pages 895-909, October.
    9. Boden, Joe & Maier, Erik & Wilken, Robert, 2020. "The effect of credit card versus mobile payment on convenience and consumers’ willingness to pay," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
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