How Many Cards Do You Use?
33 Pages Posted: 20 Jan 2014 Last revised: 14 Jul 2014
Date Written: July 13, 2014
This paper investigates how buyers allocate their spending among debit, credit, and prepaid cards. Using the 2012 Diary of Consumer Payment Choice, I show that consumers tend to concentrate the majority of their transactions and a large value of their transactions on a single type of card. The paper also investigates whether buyers concentrate their spending on one of the card networks, a behavior known as "single-homing."
Keywords: Payment card use, choice of payment cards, multi-homing, single-homing
JEL Classification: D14
Suggested Citation: Suggested Citation