Paying with Cash: A Multi-Country Analysis of the Past and Future of the Use of Cash for Payments by Consumers

Evans, David S.; Webster, Karen; Colgan, Gloria Knapp; Murray, Scott R.

doi:10.2139/ssrn.2273192

Cited by 7 publications

(14 citation statements)

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“…In a competitive market payment type acceptance it is imperative for merchants to accept both cash and card payments with each of these payment types subject to consumer choice at merchant POS, and each with its own benefits and drawbacks (Arango & Taylor 2009). Merchants will have to accept cash for years to come still, as total cash spending is forecast to increase, although slower than its historical growth, which, contrary to popular reports, suggests that payment by means of cash is not disappearing (Evans et al 2013).…”

Section: Literature Reviewmentioning

confidence: 84%

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Utilisation of payment instruments at a retail chain in Gauteng

Bester

Bronkhorst

2015

Acta Commercii

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Purpose: The purpose of this research was to determine the influence of race and income on the preferred payment instrument at pay points in a retail store in Pretoria Gauteng.Problem investigated: The method of payment, as well as the way these payment methods have been utilised, has evolved throughout history. Cash has stayed at the top of the payment instrument deck as a payment choice for the past 10 decades. With the expansion of technology payment instruments evolved to facilitate exchange between merchant and consumer. The preferred method of payment at a retail store in Gauteng, indicating whether consumers prefer cash payments or the use of cards was investigated. Further to this the difference in payment method between the different races and income groups was identified.Methodology: A quantitative survey research method was used. The statistical analysis entailed correlations using the Cramer’s V to test the dependency between two variables and the degree of dependency of variables, after which the Chi-Square test was also applied.Value of the research: The indication of consumer preference of payment method will have implications on which possibilities are available at the point of sale. Cash is no longer the only possible payment instrument; cards, debit and credit, are as easily used by consumers. Both banks and merchants will find this information important, since they need to make provision for different payment options. The results further distinguished consumer behaviour amongst different race groups and income groups.Conclusion: The research confirmed the previous findings in other countries that consumers have preconceived ideas on which payment instrument they would utilise at point of sale(POS.)

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Section: Literature Reviewmentioning

confidence: 84%

“…Other deciding variables include government and banks that are central to the longevity of cash; cash is highly correlated to the innovation of new payment methods and those adopting new innovative payment measures. (Evans et al 2013). …”

Section: Literature Reviewmentioning

confidence: 99%

Utilisation of payment instruments at a retail chain in Gauteng

Bester

Bronkhorst

2015

Acta Commercii

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“…Concerning the first strand, Drehman et al (2002) and Bagnall et al (2014) analyze cash use in several countries, showing that it is widespread, especially for low-value transactions, although systematic differences between countries persist. Other related studies include, among others: Amromin and Chakravorti (2009), that find a decreasing demand for small denomination currency when debit card use increases; Alvarez and Lippi (2009) and Lippi and Secchi (2009), who study the relationship between money demand and innovations in money withdrawal technologies; Evans, Webster, Colgan, and Murray (2013), that document an increased cash use in European countries from 2000 to 2012.…”

Section: Introductionmentioning

confidence: 99%

Cashless payments and tax evasion

Immordino

Russo

2018

European Journal of Political Economy

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Cashless payments hinder tax evasion because they build a trail for the underlying transactions. We find empirical evidence supporting this claim for Europe, showing a negative relationship between VAT evasion and the payments with credit and debit cards. We also find that using electronic cards to gather cash at ATMs, by making cash more abundant, fosters VAT evasion. Policies aimed at reducing tax evasion should therefore subsidize the direct use of electronic cards as payments, not their possession.

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“…2 The econometric evidence in Briglevics and Schuh (2013b) suggests that some of the recent U.S. increase may be the result of a decline in short-term interest rates to nearly zero. Nevertheless, persistent holding and use of cash in these industrial countries during the spread of electronic alternatives highlights a dire need for an updated comparative study of payments that includes 1 Examples include Amromin and Chakravorti (2009), Lippi andSecchi (2009), andEvans, Webster, Colgan, andMurray (2013). 2 The domestic currency ratio could still be driven by domestic hoarding.…”

Section: Introductionmentioning

confidence: 99%

Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data

et al. 2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. iii Terms of use: Documents in AbstractWe measure consumers' use of cash by harmonizing payment diary surveys from seven countries. The seven diary surveys were conducted in 2009 (Canada), 2010 (Australia), 2011 (Austria, France, Germany and the Netherlands), and 2012 (the United States). Our paper finds cross-country differences -for example, the level of cash usage differs across countries. Cash has not disappeared as a payment instrument, especially for low-value transactions. We also find that the use of cash is strongly correlated with transaction size, demographics, and point-of-sale characteristics such as merchant card acceptance and venue.

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Paying with Cash: A Multi-Country Analysis of the Past and Future of the Use of Cash for Payments by Consumers

Cited by 7 publications

References 1 publication

Utilisation of payment instruments at a retail chain in Gauteng

Utilisation of payment instruments at a retail chain in Gauteng

Cashless payments and tax evasion

Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data

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