Consumer Payment Choice in the Fifth District: Learning from a Retail Chain

28 Pages Posted: 18 Feb 2017

See all articles by Zhu Wang

Zhu Wang

Federal Reserve Banks - Federal Reserve Bank of Richmond

Alexander L. Wolman

Federal Reserve Bank of Richmond

Date Written: 2016

Abstract

This paper studies payment variation across locations and time using five years of transactions data from a large discount retail chain with hundreds of stores across the Fifth District. The results show that the median transaction size, demographics, education levels, and state fixed effects are the top factors in explaining cross-location payment variation in the sample. We also identify interesting time patterns of payment variation, particularly the longer-term decline in the cash share of transactions largely replaced by debit.

Keywords: payments, consumer behavior

Suggested Citation

Wang, Zhu and Wolman, Alexander L., Consumer Payment Choice in the Fifth District: Learning from a Retail Chain (2016). Economic Quarterly, Issue 1Q, pp. 51-78, 2016. Available at SSRN: https://ssrn.com/abstract=2919785 or http://dx.doi.org/10.21144/eq1020102

Zhu Wang (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

Alexander L. Wolman

Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

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