Purpose
The paper aims to explore reasons for choosing different payment instruments and pain points from using them in a Russian context. It proposes that given the expansion of the range of personal payment instruments, the choice for payment is now influenced by many factors, including the type of financial provider and potential benefits for consumers.
Design/methodology/approach
This paper is an exploratory study that uses data from the qualitative research conducted in three Russian cities (Moscow, Yekaterinburg and Saratov) based on 50 online payment diaries and 12 group discussions. It was complemented by the analysis of consumers’ posts on six relevant media platforms.
Findings
The results show that a bank card is a new must and people choose it for convenience, safety and access to online purchases inside and outside Russia. Cash is used out of habit or wherever cashless payments are either not free or unavailable. Reasons for smartphone pass-through wallet usage include speed, attribute of style and higher cashbacks.
Research limitations/implications
The limitations of the study are similar to any qualitative research and include, in particular, lack of generalization. Proposed hypotheses might be further tested quantitatively on a representative sample.
Practical implications
The results might help providers of financial services in creating better quality products that address consumer pain points and in developing strategies that allow for the changing preferences of consumers.
Originality/value
To the authors’ knowledge, this is the first such study to consider reasons for choosing and pain points from using certain payment instruments in the emerging markets, in particular, Russia.
Abstract:One of the main problems for any start-up is to find funds for the idea development, product/service creation and promoting it in the market (Binks & Ennew, 1996) (Ragin et al., 2006; Skaaning, 2007), as well as financial technologies (Shim & Shin, 2016) and develops knowledge on fintech start-ups in particular.
This study is aimed to examine the effect caused by perception of higher card acceptance barriers on cashless revenue share of Russian merchants. The empirical testing is conducted based on two representative samples of Russian nationwide merchants survey data collected in 2014 and 2017. The analysis considers a set of regional controls, as well as merchant-specific characteristics. The statistically significant evidence in favor of negative impact caused by perception of higher infrastructural barriers on cashless revenue share is found in both samples, while only a partial significance of higher perceived institutional and human capital barriers may be observed. No significant evidence for merchants' rationality with respect to acceptance barrier has been found based on the comparison of perceived and actual barriers effects.
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