Pandemic Payment Patterns

37 Pages Posted: 4 Feb 2021 Last revised: 10 Mar 2021

See all articles by Nicole Jonker

Nicole Jonker

De Nederlandsche Bank (DNB); De Nederlandsche Bank

Carin van der Cruijsen

De Nederlandsche Bank

Michiel Bijlsma

University of Amsterdam - SEO Economic Research; Tilburg Law and Economics Center (TILEC)

Wilko Bolt

De Nederlandsche Bank (Dutch Central Bank); VU University Amsterdam

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Date Written: December 31, 2020

Abstract

COVID-19 has temporarily changed the relative cost and benefits of different payment methods: cash has become more costly in terms of health risks, ease of use and likelihood of acceptance, whereas debit card usage has become less costly. As a result, consumers have shifted away from cash. For some, this may speed up the adoption of electronic payment methods, resulting in a permanent change in payment behaviour. Others will return to their preferred payment method once the influence of COVID-19 on our health and daily lives has faded away. Based on unique payment diary survey data collected among a representative panel of Dutch consumers, we study the shift in payment behaviour and payment preferences during the first phase of the COVID-19 pandemic. Since the start of the lockdown in the Netherlands the likelihood of debit card usage at the expense of cash has increased by 13 percentage points. About 60 percent of this shift has persisted seven months after the start of the pandemic in the Netherlands and appears to be longlived. Also, the pandemic has resulted in a shift in payment preferences towards more contactless payments. Both effects are largest for elderly people.

Keywords: COVID-19, consumer payment behaviour, consumption, payment diary data

JEL Classification: D12, E21, E42, O33

Suggested Citation

Jonker, Nicole and van der Cruijsen, Carin and Bijlsma, Michiel and Bolt, Wilko, Pandemic Payment Patterns (December 31, 2020). TILEC Discussion Paper No. 2020-033, Available at SSRN: https://ssrn.com/abstract=3778265 or http://dx.doi.org/10.2139/ssrn.3778265

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

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

Michiel Bijlsma (Contact Author)

University of Amsterdam - SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Wilko Bolt

De Nederlandsche Bank (Dutch Central Bank) ( email )

P.O. Box 98
1000 AB Amsterdam
Netherlands

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

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