Consumer Use of Multiple Payment Methods

23 Pages Posted: 28 Jun 2019 Last revised: 17 Jan 2020

See all articles by Oz Shy

Oz Shy

Federal Reserve Banks - Federal Reserve Bank of Atlanta

Multiple version iconThere are 2 versions of this paper

Date Written: January 16, 2020


This article investigates the degree to which buyers choose to diversify their use of payment methods for in-person purchases. Some buyers use only one payment instrument. Others combine the use of mostly cash, credit, and debit cards, and a few paper checks and prepaid cards. To each survey respondent, I apply three concentration and inequality measures over the use of payment instruments. Results show that the average and median degree of consumers' payment concentration only slightly decline with payment volume and exhibit almost no correlation with consumer demographics.

Keywords: Multiple payment methods, consumer payment choice, payment instruments, in-person purchases, concentration and inequality measures.

JEL Classification: D9, E42

Suggested Citation

Shy, Oz, Consumer Use of Multiple Payment Methods (January 16, 2020). Available at SSRN: or

Oz Shy (Contact Author)

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

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States

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