Carrot and Stick: Impact of Regulations, Subsidies, and Obligations on the Development of Cashless Payments in Poland

41 Pages Posted: 16 Apr 2024

See all articles by Michal Polasik

Michal Polasik

Nicolaus Copernicus University

Radoslaw Kotkowski

Nicolaus Copernicus University in Toruń

Arkadiusz Manikowski

University of Warsaw - Faculty of Management

Leo Van Hove

Vrije Universiteit Brussel (VUB)

Agnieszka Huterska

Nicolaus Copernicus University

Marta Jakubowska

Nicolaus Copernicus University

Date Written: March 20, 2024

Abstract

Between 2012 and 2022, Poland, once a EU laggard in the area of cashless payments, underwent a pivotal transformation. The per capita number of cashless transactions at physical points of sale increased almost sevenfold (from about 30 to around 206), surpassing the EU average. At the same time, the number of payment terminals per 1 million people quadrupled (from 7,500 to 32,000), but the number of payment cards per capita stalled and increased by just one-third. In this paper, we employed a two-stage approach to analyze whether policies introduced in recent years in Poland affected the numbers of payment terminals and cards, and ultimately the number of cashless payments. These policies include: regulations of the interchange fee level; the launch of a program to subsidize payment terminals for merchants; and the introduction of the obligation for merchants to accept payment cards. Our results show, inter alia, that two of the previously entioned policies had a positive effect on the size of the acceptance network and that this increase, in turn, had a statistically significant impact on the development of cashless payments.

Keywords: payment cards; payment terminals; interchange fees; cashless instruments acceptance obligations; subsidies

Suggested Citation

Polasik, Michal and Kotkowski, Radosław and Manikowski, Arkadiusz and Van Hove, Leo and Huterska, Agnieszka and Jakubowska, Marta, Carrot and Stick: Impact of Regulations, Subsidies, and Obligations on the Development of Cashless Payments in Poland (March 20, 2024). Available at SSRN: https://ssrn.com/abstract=4766046 or http://dx.doi.org/10.2139/ssrn.4766046

Michal Polasik (Contact Author)

Nicolaus Copernicus University ( email )

Gagarina 13A
Torun, 87-100
Poland
(0048) 56 611 4634 (Phone)

Radosław Kotkowski

Nicolaus Copernicus University in Toruń ( email )

11 Gagarina Street
Torun, 87-100
Poland

Arkadiusz Manikowski

University of Warsaw - Faculty of Management ( email )

1/3 Szturmowa Street 02-678
Warsaw
Poland

Leo Van Hove

Vrije Universiteit Brussel (VUB) ( email )

Department of Applied Economics (APEC)
Pleinlaan 5
Brussels, B-1050
Belgium
+32 2 614 84 49 (Phone)

HOME PAGE: http://research.vub.ac.be/applied-economics/members

Agnieszka Huterska

Nicolaus Copernicus University ( email )

Gagarina 11
Gagarina 13a
Torun, kujawsko-pomorskie 87-100
Poland

Marta Jakubowska

Nicolaus Copernicus University ( email )

Gagarina 11
Gagarina 13a
Torun, kujawsko-pomorskie 87-100
Poland

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