Title: Will that be Cash, Debit, or Credit? How Canadians Pay ∗
Abstract: This paper investigates the determinants of consumer payment instrument decisions at the point of sale. The data is drawn from the Method of Payment (MOP) survey conducted by the Bank of Canada in 2009. The survey was conducted among adult Canadians who completed two survey instruments: a questionnaire and a shopping diary filled out over a 3 day period. In addition to the usual demographic characteristics there is also detailed information on perceptions of alternative payment instrument attributes such as: ease of use, acceptance, record keeping, cost, and fear of fraud. The questionnaire also provides information about debit and credit card characteristics such as fees, interest rates, rewards, and whether or not consumers are revolving on their credit cards. The 3-day diaries on the other hand, yield rich transaction characteristics such as transaction amount, where and when the transaction was made and the payment instrument chosen. Preliminary estimates of discrete choice models of payment instrument usage at the point of sale indicate that bank and credit card account plans as well as perceptions of payment instrument attributes play a major role on how Canadians pay.
Publication Year: 2011
Publication Date: 2011-01-01
Language: en
Type: article
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Cited By Count: 1
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