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The Safety of Cash and Debit Cards: A Study on the Perception and Behavior of Dutch Consumers

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  • Anneke Kosse

    (De Nederlandsche Bank)

Abstract

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 here.

Suggested Citation

  • Anneke Kosse, 2013. "The Safety of Cash and Debit Cards: A Study on the Perception and Behavior of Dutch Consumers," International Journal of Central Banking, International Journal of Central Banking, vol. 9(4), pages 77-98, December.
    • Handle: RePEc:ijc:ijcjou:y:2013:q:4:a:3
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    References listed on IDEAS

    as
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    15. Wilko Bolt & David Humphrey & Roland Uittenbogaard, 2008. "Transaction Pricing and the Adoption of Electronic Payments: A Cross-Country Comparison," International Journal of Central Banking, International Journal of Central Banking, vol. 4(1), pages 89-123, March.
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    Cited by:

    1. John Bagnall & David Bounie & Kim P. Huynh & Anneke Kosse & Tobias Schmidt & Scott Schuh, 2016. "Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data," International Journal of Central Banking, International Journal of Central Banking, vol. 12(4), pages 1-61, December.
    2. Lola Hernandez & Nicole Jonker & Anneke Kosse, 2017. "Cash versus Debit Card: The Role of Budget Control," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(1), pages 91-112, March.
    3. Cologgi, Massimiliano, 2023. "The impact of regulation on retail payments security: Evidence from Italian supervisory data," Finance Research Letters, Elsevier, vol. 54(C).
    4. Imhanrenialena Ogbemudia Benedict & Ebhotemhen Wilson & Cyril Ndubuisi Ugwu & Chukwu Benjamin Ibe, 2024. "Investing in Rural Agriculture in the Face of Innovative Financial Services: Does Financial Literacy Matter in Nigeria?," SAGE Open, , vol. 14(2), pages 21582440241, May.
    5. Carin Cruijsen & Frank Horst, 2019. "Cash or Card? Unravelling the Role of Socio-Psychological Factors," De Economist, Springer, vol. 167(2), pages 145-175, June.
    6. Charles M. Kahn & Maarten van Oordt & Yu Zhu, 2021. "Best Before? Expiring Central Bank Digital Currency and Loss Recovery," Staff Working Papers 21-67, Bank of Canada.
    7. Guerino Ardizzi & Andrea Nobili & Giorgia Rocco, 2020. "A game changer in payment habits: evidence from daily data during a pandemic," Questioni di Economia e Finanza (Occasional Papers) 591, Bank of Italy, Economic Research and International Relations Area.
    8. Gustavo A. Del Angel, 2016. "Cashless Payments and the Persistence of Cash: Open Questions About Mexico," Economics Working Papers 16108, Hoover Institution, Stanford University.
    9. Guha, Brishti, 2013. "Guns and crime revisited," Journal of Economic Behavior & Organization, Elsevier, vol. 94(C), pages 1-10.
    10. Choi, Hyung Sun, 2014. "Money, credit, risk of loss, and limited participation," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 9-23.
    11. repec:cfe:wpcefa:2016_05 is not listed on IDEAS
    12. Charles M. Kahn & José M. Liñares-Zegarra & Joanna Stavins, 2017. "Are there Social Spillovers in Consumers’ Security Assessments of Payment Instruments?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 52(1), pages 5-34, October.
    13. Joanna Stavins, 2017. "How do consumers make their payment choices?," Research Data Report 17-1, Federal Reserve Bank of Boston.
    14. Yulia Titova & Delia Cornea & Sébastien Lemeunier, 2021. "What Factors Keep Cash Alive in the European Union?," De Economist, Springer, vol. 169(3), pages 291-317, August.
    15. Ma, Yechi & Ding, Yibing & Bu, Ziwen & Li, Suyang, 2024. "Political freedom and financial inclusion: Unraveling social trust and political rent-seeking," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 46-65.
    16. Carin van der Cruijsen & Mirjam Plooij, 2015. "Changing payment patterns at point-of-sale: their drivers," DNB Working Papers 471, Netherlands Central Bank, Research Department.
    17. Carin van der Cruijsen & Lola Hernandez & Nicole Jonker, 2017. "In love with the debit card but still married to cash," Applied Economics, Taylor & Francis Journals, vol. 49(30), pages 2989-3004, June.
    18. Massimiliano Cologgi, 2023. "The security of retail payment instruments: evidence from supervisory data," Temi di discussione (Economic working papers) 30, Bank of Italy, Economic Research and International Relations Area.
    19. Seitz, Franz & Krueger, Malte, 2017. "The Blessing of Cash," International Cash Conference 2017 – War on Cash: Is there a Future for Cash? 162911, Deutsche Bundesbank.
    20. Świecka, Beata & Terefenko, Paweł & Paprotny, Dominik, 2021. "Transaction factors’ influence on the choice of payment by Polish consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).

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    More about this item

    JEL classification:

    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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