Consumer Use of Multiple Payment Methods
18 Pages Posted: 28 Jun 2019 Last revised: 28 Sep 2019
Date Written: September 27, 2019
The paper 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 measures over the use of payment instruments. Results show that the degree of consumers' payment concentration exhibits almost no correlation with consumer demographics, payment volume, or aggregate value.
Keywords: Multiple payment methods, consumer payment choice, payment instruments, in-person purchases, concentration measures
JEL Classification: D9, E42
Suggested Citation: Suggested Citation