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

Télécom Paris

Martin Quinn

CATÓLICA-LISBON School of Business & Economics

Patrick Waelbroeck

Télécom Paris

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 )

19 Place Marguerite Perey
Palaiseau, 91120
France

David Bounie (Contact Author)

Télécom Paris ( email )

19 Place Marguerite Perey
Palaiseau, 91120
France

Martin Quinn

CATÓLICA-LISBON School of Business & Economics ( email )

Palma de Cima
Lisbon, Lisboa 1649-023
Portugal

Patrick Waelbroeck

Télécom Paris ( email )

19 Place Marguerite Perey
Palaiseau, 91120
France

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