Financial Literacy and Payment Behaviour: Evidence from Payment Diary Survey Data

Item Type Journal paper
Abstract This paper examines the effect of financial literacy on payment behaviour. We use data from a payment diary and an online survey conducted in 2018 in Switzerland. We estimate a two-step Heckman selection model to separately assess payment instrument adoption and usage decisions. We analyse the payment instruments cash, debit card, credit card, prepaid credit card, contactless debit card, contactless credit card and mobile payment. We introduce a novel payment-related literacy index. The results suggest that financial literacy exerts no effect on payment instrument choice. Payment literacy is a stronger predictor of payment behaviour than financial literacy. Traditional and contactless debit and credit card adoption are positively associated with payment literacy. We show that literacy levels impact payment instrument adoption more than subsequent usage decisions.
Authors Trütsch, Tobias & Marcotty-Dehm, Nikolaus
Language English
Subjects business studies
economics
finance
HSG Classification contribution to scientific community
Refereed No
Date 25 June 2021
Number of Pages 35
Official URL https://ssrn.com/abstract=3918910
Depositing User Dr. Tobias Trütsch
Date Deposited 09 Sep 2021 12:52
Last Modified 20 Jul 2022 17:46
URI: https://www.alexandria.unisg.ch/publications/264273

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Trütsch, Tobias & Marcotty-Dehm, Nikolaus (2021) Financial Literacy and Payment Behaviour: Evidence from Payment Diary Survey Data.

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https://www.alexandria.unisg.ch/id/eprint/264273
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