Payment Instruments, Financial Privacy and Online Purchases

25 Pages Posted: 9 Jul 2016 Last revised: 30 Jun 2017

See all articles by Balgobin Yann

Balgobin Yann

Telecom ParisTech

David Bounie

Telecom ParisTech

Martin Quinn

Telecom ParisTech

Patrick Waelbroeck

Telecom ParisTech

Date Written: June 13, 2017

Abstract

The protection of financial personal data has become a major concern for Internet users in the digital economy. This paper investigates whether the consumers’ use of non-bank payment instruments that preserve financial privacy from banks and relatives may increase their online purchases. We analyze the purchasing decisions and the use of bank and non-bank payment instruments of a representative sample of French Internet consumers in 2015. Using two econometric methods, namely a two-step regression and a Bayesian Markov Chain Monte Carlo model to account for a potential endogeneity problem, we find evidence that the use of a non-bank payment instrument positively influences consumers’ online purchases.

Suggested Citation

Yann, Balgobin and Bounie, David and Quinn, Martin and Waelbroeck, Patrick, Payment Instruments, Financial Privacy and Online Purchases (June 13, 2017). Available at SSRN: https://ssrn.com/abstract=2807036 or http://dx.doi.org/10.2139/ssrn.2807036

Balgobin Yann

Telecom ParisTech ( email )

46 rue Barrault
F-75634 Paris, Cedex 13
France

David Bounie (Contact Author)

Telecom ParisTech ( email )

46 rue Barrault
F-75634 Paris, Cedex 13
France

Martin Quinn

Telecom ParisTech ( email )

46 rue Barrault
F-75634 Paris, Cedex 13
France

Patrick Waelbroeck

Telecom ParisTech ( email )

46 rue Barrault
F-75634 Paris, Cedex 13
France

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