Choosing How to Pay: The Influence of Home Country Habits

36 Pages Posted: 27 Dec 2011

See all articles by Anneke Kosse

Anneke Kosse

De Nederlandsche Bank

David-Jan Jansen

De Nederlandsche Bank

Date Written: December 27, 2011


Is having a foreign background a relevant factor in choosing between payment instruments in consumer point-of-sale transactions? We analyze this question using a unique diary survey in which both participants with a Dutch and a foreign background documented their daily purchases. Payment habits acquired in home countries continue to affect the mode of payment after migration. First generation migrants born in cash-oriented economies are more likely to use cash in point-of-sale transactions. However, the second-generation has similar payment habits as individuals with a Dutch background. This finding suggests that payment behavior is not passed on from generation to generation, but molded by host country payment habits. Finally, we suggest that special information campaigns to increase debit card usage will not have clear net social benefits.

Keywords: consumer payments, habits, debit card, cash, migration

JEL Classification: C25, D12

Suggested Citation

Kosse, Anneke and Jansen, David-Jan, Choosing How to Pay: The Influence of Home Country Habits (December 27, 2011). De Nederlandsche Bank Working Paper No. 328. Available at SSRN: or

Anneke Kosse (Contact Author)

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB

David-Jan Jansen

De Nederlandsche Bank ( email )

P.O. Box 98
1000 AB Amsterdam


Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics