Explaining Adoption and Use of Payment Instruments by U.S. Consumers

40 Pages Posted: 14 Feb 2015

See all articles by Sergei Koulayev

Sergei Koulayev

Consumer Financial Protection Bureau

Marc Rysman

Boston University - Department of Economics

Scott D. Schuh

Federal Reserve Bank of Boston - Research Department

Joanna Stavins

Federal Reserve Bank of Boston

Date Written: September 20, 2012

Abstract

The way that consumers make payments is changing rapidly and attracts important current policy interest. This paper develops and estimates a structural model of adoption and use of payment instruments by U.S. consumers. We use a cross-section of data from the Survey of Consumer Payment Choice, a new survey of consumer behavior. We evaluate substitution and income effects. Our simulations shed light on the consumer response to the 2011 regulation of interchange fees on debit cards imposed by the Dodd-Frank Act, as well as the proposed settlement between Visa and MasterCard and the Department of Justice that would allow merchants to surcharge the use of payment cards.

JEL Classification: E41, D41, D12

Suggested Citation

Koulayev, Sergei and Rysman, Marc and Schuh, Scott and Stavins, Joanna, Explaining Adoption and Use of Payment Instruments by U.S. Consumers (September 20, 2012). FRB of Boston Working Paper No. 12-14. Available at SSRN: https://ssrn.com/abstract=2564176 or http://dx.doi.org/10.2139/ssrn.2564176

Sergei Koulayev

Consumer Financial Protection Bureau ( email )

United States

Marc Rysman

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States
617-353-3086 (Phone)
617-353-4449 (Fax)

Scott Schuh (Contact Author)

Federal Reserve Bank of Boston - Research Department ( email )

600 Atlantic Ave.
Boston, MA 02210
United States
617-973-3941 (Phone)
617-619-7541 (Fax)

Joanna Stavins

Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States
617-973-4217 (Phone)
617-973-4218 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
61
Abstract Views
654
rank
354,144
PlumX Metrics