Consumer Use of Multiple Payment Methods

18 Pages Posted: 28 Jun 2019 Last revised: 28 Sep 2019

See all articles by Oz Shy

Oz Shy

Federal Reserve Banks - Federal Reserve Bank of Atlanta

Date Written: September 27, 2019

Abstract

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

Shy, Oz, Consumer Use of Multiple Payment Methods (September 27, 2019). Available at SSRN: https://ssrn.com/abstract=3410535 or http://dx.doi.org/10.2139/ssrn.3410535

Oz Shy (Contact Author)

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

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

HOME PAGE: http://https://www.frbatlanta.org/research/economists/shy-oz.aspx

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