Time Efficiency of Point-of-Sale Payment Methods: The Empirical Results for Cash, Cards and Mobile Payments

30 Pages Posted: 27 Feb 2011 Last revised: 31 Jan 2014

Michal Polasik

Nicolaus Copernicus University

Jakub Górka

Warsaw University, Management Faculty

Gracjan Wilczewski

Nicolaus Copernicus University

Janusz Kunkowski

Nicolaus Copernicus University

Karolina Przenajkowska

Nicolaus Copernicus University

Natalia Tetkowska

Nicolaus Copernicus University

Date Written: December 20, 2012

Abstract

We propose a novel approach for the time efficiency study of payment process at the Point-Of-Sale (POS). A wide range of payment methods from cash and standard cards to contactless cards, RFID stickers and mobile payments (NFC and remote) was analysed. Transactions were timed by means of digital chronography of video material recorded in the biggest chain of convenience stores in Poland. Our results confirm that cash is significantly faster payment method than traditional payment cards with a magnetic stripe or EMV chip. However, the innovative payment methods, such as contactless cards and NFC mobile payments, are competitive to cash in terms of time efficiency. Contactless cards used in offline mode and without printing paper slips are the first popular electronic payment method in history faster than cash. Our results could be applied to optimise the payment process at POS as well as to develop innovative and efficient payment solutions.

Keywords: retail payments, tender time, credit & debit cards, contactless cards, NFC, mobile payments

JEL Classification: E42, L81, O33, G21

Suggested Citation

Polasik, Michal and Jakub Górka and Wilczewski, Gracjan and Kunkowski, Janusz and Przenajkowska, Karolina and Tetkowska, Natalia, Time Efficiency of Point-of-Sale Payment Methods: The Empirical Results for Cash, Cards and Mobile Payments (December 20, 2012). Available at SSRN: https://ssrn.com/abstract=1769922 or http://dx.doi.org/10.2139/ssrn.1769922

Michal Polasik (Contact Author)

Nicolaus Copernicus University ( email )

Gagarina 13A
Torun, 87-100
Poland
(0048) 56 611 4634 (Phone)

Jakub Górka

Warsaw University, Management Faculty ( email )

Szturmowa 1/3
Warszawa, Pl-02678
Poland

HOME PAGE: http://www.wz.uw.edu.pl

Gracjan Wilczewski

Nicolaus Copernicus University ( email )

Gagarina 11
Gagarina 13a
Torun, kujawsko-pomorskie 87-100
Poland

Janusz Kunkowski

Nicolaus Copernicus University ( email )

Gagarina 11
Gagarina 13a
Torun, kujawsko-pomorskie 87-100
Poland

Karolina Przenajkowska

Nicolaus Copernicus University ( email )

Gagarina 11
Gagarina 13a
Torun, kujawsko-pomorskie 87-100
Poland

Natalia Tetkowska

Nicolaus Copernicus University ( email )

Gagarina 11
Gagarina 13a
Torun, kujawsko-pomorskie 87-100
Poland

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