Do Consumers Pay More Using Debit Cards than Cash? An Experiment

Emma Runnemark, Jonas Hedman, Xiao Xiao

    Research output: Working paperResearch

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    Abstract

    We conduct an incentivized experiment to test whether the willingness to pay is
    higher for debit cards compared to cash for three consumer products. Our
    findings support this conjecture also after controlling for cash availability,
    spending type, price familiarity and consumption habits of the products. The
    evidence thus suggests that different representations of money matters for
    consumer behavior.
    Original languageEnglish
    Place of PublicationLund
    PublisherLund University
    Number of pages9
    Publication statusPublished - 2014
    SeriesWorking paper. Department of Economics, Lund University
    Number21
    Volume2014

    Bibliographical note

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    Keywords

    • Payment methods
    • Debit cards
    • Cash
    • Willingness-to-pay

    Cite this

    Runnemark, E., Hedman, J., & Xiao, X. (2014). Do Consumers Pay More Using Debit Cards than Cash? An Experiment. Lund University. Working paper. Department of Economics, Lund University, No. 21, Vol.. 2014