Consumer Use of Multiple Payment Methods

18 Pages Posted: 3 Dec 2019

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: 2019-10-01

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, 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 (2019-10-01). FRB Atlanta Working Paper No. 2019-19. Available at SSRN: https://ssrn.com/abstract=3497289 or http://dx.doi.org/10.29338/wp2019-19

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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