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Tapping and waving to debt: Mobile payments and credit card behavior

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  • Meyll, Tobias
  • Walter, Andreas

Abstract

This study investigates whether the use of mobile payment technology is associated with individuals’ credit card (mis-)behavior. Using a sample of more than 25,000 US households, we find that individuals using their smartphones to conduct mobile payments are more likely to exhibit costly credit card behavior. In addition, conditional on using mobile payments, our results provide further evidence that frequent usage of mobile payments is related to individuals’ costly credit card behavior. Thus, our findings suggest a relationship between innovative payment methods and increases in individuals’ overall spending.

Suggested Citation

  • Meyll, Tobias & Walter, Andreas, 2019. "Tapping and waving to debt: Mobile payments and credit card behavior," Finance Research Letters, Elsevier, vol. 28(C), pages 381-387.
    • Handle: RePEc:eee:finlet:v:28:y:2019:i:c:p:381-387
    DOI: 10.1016/j.frl.2018.06.009
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    Citations

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    Cited by:

    1. Andrzej Cwynar & Beata Świecka & Kamil Filipek & Robert Porzak, 2022. "Consumers' knowledge of cashless payments: Development, validation, and usability of a measurement scale," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(2), pages 640-665, June.
    2. Brenner, Lukas & Meyll, Tobias, 2020. "Robo-advisors: A substitute for human financial advice?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 25(C).
    3. Johan Hellemans & Kim Willems & Malaika Brengman, 2023. "Covid-19 and mobile payment in Belgium: Closing the digital divide or just for the young, social, and impulsive?," Electronic Commerce Research, Springer, vol. 23(3), pages 1539-1564, September.
    4. Marie-Hélène Felt & Angelika Welte & Katrina Talavera, 2024. "Untapped Potential: Mobile Device Ownership and Mobile Payments in Canada," Staff Working Papers 24-25, Bank of Canada.
    5. Chunchun Chen & Chengchun Li & Guoying Ren, 2022. "The effect of present‐biased preferences on revolving debts: Evidence from urban households in China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2653-2668, July.
    6. Del Gaudio, Belinda L. & Porzio, Claudio & Sampagnaro, Gabriele & Verdoliva, Vincenzo, 2021. "How do mobile, internet and ICT diffusion affect the banking industry? An empirical analysis," European Management Journal, Elsevier, vol. 39(3), pages 327-332.
    7. M. M. Naeser Seldal & Ellen K. Nyhus, 2022. "Financial Vulnerability, Financial Literacy, and the Use of Digital Payment Technologies," Journal of Consumer Policy, Springer, vol. 45(2), pages 281-306, June.
    8. Ha, Jinkyung & Nam, Changi & Kim, Seongcheol, 2024. "A systematic review of mobile payment literature: What has been studied and what should be studied?," Telecommunications Policy, Elsevier, vol. 48(7).
    9. Liao, Shu-Hsien & Yang, Ling-Ling, 2020. "Mobile payment and online to offline retail business models," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    10. Parks-Stamm, Elizabeth J. & Flinner, Sameena M., 2024. "Generational differences in payment transparency perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    11. Broekhoff, Marie-Claire & van der Cruijsen, Carin, 2024. "Paying in a blink of an eye: it hurts less, but you spend more," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 110-133.
    12. Tan Zi Yi & Noor Ashikin Mohd Rom & Nurbani Md. Hassan & Mohamad Shaharudin Samsurijan & Andrew Ebekozien, 2023. "The Adoption of Robo-Advisory among Millennials in the 21st Century: Trust, Usability and Knowledge Perception," Sustainability, MDPI, vol. 15(7), pages 1-16, March.

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    More about this item

    Keywords

    Mobile payment; Credit card behavior; Spending behavior; Household finance; Pain of payment;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • G4 - Financial Economics - - Behavioral Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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