The Safety of Cash and Debit Cards: A Study on the Perception and Behavior of Dutch Consumers
by Anneke Kosse
Cash and Payment Systems Division, De Nederlandsche Bank
This paper investigates the impact of the perceived payment
safety on debit card and cash usage. It provides a conceptual
framework of safety perception and payment behavior,
which is empirically tested using 2008 consumer survey
data. The results show that consumers’ payment preferences
are strongly influenced by their views on the safety of payment
instruments. These views are determined mainly by consumers’
perception of the likelihood that payment incidents may occur.
The seriousness of possible incidents is also considered, though
to a much lesser degree. Personal characteristics and experiences
of payment incidents are shown to play a significant role
JEL Codes: C42, D12, E41.
Full article (PDF, 22 pages 355 kb)