ACL-2International audienceABSTRACTConsumer decisions regarding retail payment instruments entail private and social costs. Due to these social costs, policymakers are increasingly trying to understand the determinants of consumer payment choices as documented by the European Central Bank?s regular publications. This article contributes to this understanding by investigating the role of perceived risk. Based on an original survey of French consumers, we measure the effects of perceived risk on the decisions to hold and use the main retail payment instruments: cash, card and cheque. We point to the sequential dependence of the decisions to hold and use a payment instrument, and study jointly both decisions. The bivariate analysis based on risk factors shows that unavailability risk and time risk have the greatest transverse influence on holding and using payment instruments. Our results, robust to controlling for consumer characteristics, confirm their propensity for a quick-to-use and constantly available payment instrument. We discuss the relevance of our results for policy making purposes
Le présent article analyse l’impact de la criminalité comme facteur environnemental sur l’acceptation de la carte bancaire. Nous utilisons un document publié par le ministère de l’Intérieur, l’« état 4 001 », pour associer à chaque commerçant le niveau de criminalité de son département. Nous concluons qu’un niveau élevé de criminalité financière défavorise l’acceptation de la carte bancaire, tandis qu’un niveau élevé de criminalité violente la favorise. L’effet de la criminalité financière est interprété comme un effet de sélection adverse, et l’effet de la criminalité violente résulte de l’internalisation partielle par les commerçants des risques encourus par les consommateurs.
The impact of crime on economic activity has been widely studied. The economic analysis of crime on payment instrument, however, is still lacking. In this paper, we analyze the impact of crime on the use of cash and card payment with an original database of a representative sample of French consumers. We provide empirical evidence that violent and financial crimes have opposite effects on cash withdrawn and cash payment: On the one side, violent crime increases the amount of cash withdrawn and increases the probability of a cash payment. On the other side, financial crime decreases the amount of cash withdrawn and increases the probability of a credit or debit card payment. The probability of mugging is higher when withdrawing cash and automated teller machines (ATMs) deliver only notes. The increase in the amount of cash withdrawn comes from the reduction of the number of cash withdrawals together with the non-linearity of cash withdrawals at ATMs. The increase in the proportion of card owners when financial crime is high is a result of adverse selection: a financial fraudster is more aware of the insurance provided with payment cards, and therefore he places a greater value on having a payment card.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.