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Card-Sales Response to Merchant Contactless Payment Acceptance

Author

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  • David Bounie

    (SES - Département Sciences Economiques et Sociales - Télécom ParisTech, ECOGE - Economie Gestion - I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom ParisTech - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Youssouf Camara

    (IP Paris - Institut Polytechnique de Paris)

Abstract

Disruptive innovations in digital payments are happening in a large number of countries around the world. In this paper, we investigate how merchants' acceptance of a contactless card technology affects card sales. Using score matching and difference-in-difference techniques on a unique sample of about 275,580 merchants in France, we find that accepting contactless payments in 2018 increases the card-sales amount by 15.3 percent on average (and by 17.1 percent the card-sales count) compared to merchants who do not accept contactless payments. We also find evidence that accepting contactless payments exerts a positive spillover of about 1.3 percent in the amount of contact card sales, and thus significantly increases the average annual card-sales amount and count for small merchants and new entrepreneurs

Suggested Citation

  • David Bounie & Youssouf Camara, 2020. "Card-Sales Response to Merchant Contactless Payment Acceptance," Post-Print hal-02296302, HAL.
    • Handle: RePEc:hal:journl:hal-02296302
    DOI: 10.1016/j.jbankfin.2020.105938
    Note: View the original document on HAL open archive server: https://telecom-paris.hal.science/hal-02296302v2
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    Cited by:

    1. Franz Seitz & Lucas Devigne & Raymond de Pastor, 2022. "Different Motives for Holding Cash in France: an Analysis of the Net Cash Issues of the Banque de France," Working papers 888, Banque de France.
    2. Marie-Hélène Felt, 2020. "Losing Contact: The Impact of Contactless Payments on Cash Usage," Staff Working Papers 20-56, Bank of Canada.

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    Keywords

    difference- in-difference; digital payments; contactless cards;
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