Consumer Willingness to Share Payments Data: Trust for Sale?

33 Pages Posted: 9 Jun 2020

See all articles by Michiel Bijlsma

Michiel Bijlsma

De Nederlandsche Bank; Tilburg Law and Economics Center (TILEC)

Carin van der Cruijsen

De Nederlandsche Bank

Nicole Jonker

De Nederlandsche Bank (DNB); De Nederlandsche Bank

Date Written: June 5, 2020

Abstract

The revised Payment Services Directive (PSD2) has opened the possibility for third parties to accessconsumers’ payment account in order to use their payments data. Such third-party access to data is a novum in network regulation. Its success depends on consumer preferences concerning the usage of this data. We study these preferences using a representative panel of Dutch consumers. In particular, we consider how consumer willingness to allow access to payments data depends on: (i) the type of data user: consumers’ own bank, another bank, or a BigTech; (ii) financial incentives; and (iii) trust in the data user. We research attitudes in case of a financial overview, a mortgage loan and a personal loan and obtain the following results. First, willingness to allow access is highest if the user is the consumer’s own bank. This holds irrespective of the type of service and the financial product. Second, the propensity to use account information services is driven by consumers’ trust in the providers of these services. Third, an explicit financial reward can tempt people to accept offers from other providers. BigTechs need to offer stronger incentives than other banks, because people trust them the least.

Keywords: consumers, discrete choice models, PSD2, retail payments, trust, pricing

JEL Classification: C25, D12, E42, G21, G24, G28

Suggested Citation

Bijlsma, Michiel and van der Cruijsen, Carin and Jonker, Nicole, Consumer Willingness to Share Payments Data: Trust for Sale? (June 5, 2020). TILEC Discussion Paper Forthcoming DP 2020-015, Available at SSRN: https://ssrn.com/abstract=3619988 or http://dx.doi.org/10.2139/ssrn.3619988

Michiel Bijlsma (Contact Author)

De Nederlandsche Bank ( email )

Netherlands

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Carin van der Cruijsen

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

HOME PAGE: http://www.dnb.nl/en/onderzoek-2/onderzoekers/overzicht-persoonlijke-paginas/index.jsp

Nicole Jonker

De Nederlandsche Bank (DNB) ( email )

P.O. Box 98
Amsterdam, 1000 AB
Netherlands

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

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