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The Use of Payment Instruments in Austria - A Study Based on Survey Data from 1996 to 2011

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Abstract

This study analyzes the results of the OeNB’s methods-of-payment survey of fall 2011 and compares them with the results of similar surveys from the years 1996, 2000 and 2005. The rapid development of cashless payment options in the 15 years that have passed between the first and last analyzed survey and the more widespread availability of payment cards raise the question how consumer behavior has changed. With a value share of some 65% of total payments, cash still remains the most important payment instrument. Debit cards have also risen in importance (to some 25%). While the share of debit card payments doubled between 2000 and 2005, their recent increase was far less significant. The value share of credit cards remains low at 5%. Even though the use of payment instruments varies with education, income and age, in terms of value more than 50% of all payments are still made in cash in each of these sociodemographic subgroups. By contrast, gender and the size of a resident’s home town do not have much impact on the use of cash. The use of payment instruments is determined by two further factors: the size of the payment and the type of the purchase. It is shown that card payments increased markedly in the period from 1996 to 2011 primarily for amounts exceeding EUR 20. Still, cash continues to be used intensively for larger-value payments as well, and it still accounts for a large share of payments in both the food and services sectors, as well as in restaurants and hotels. By international comparison, Austrian payments are shown to be very cash-intensive. The available data suggest that this situation is not solely the result of a low POS terminal density. Rather, this tendency may also be attributable to the fact that Austrian consumers have a positive view of cash. Moreover, a relatively high ATM density and the possibility to withdraw cash free of charge may positively influence the use of cash. On the supply side, the survey results indicate that card acceptance is low for small-value payments.

Suggested Citation

  • Peter Mooslechner & Helmut Stix & Karin Wagner, 2012. "The Use of Payment Instruments in Austria - A Study Based on Survey Data from 1996 to 2011," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 53-77.
    • Handle: RePEc:onb:oenbmp:y:2012:i:4:b:3
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    References listed on IDEAS

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    1. Schmiedel, Heiko & Kostova, Gergana & Ruttenberg, Wiebe, 2012. "The social and private costs of retail payment instruments: a European perspective," Occasional Paper Series 137, European Central Bank.
    2. Carlos Arango & Angelika Welte, 2012. "The Bank of Canada’s 2009 Methods-of-Payment Survey: Methodology and Key Results," Discussion Papers 12-6, Bank of Canada.
    3. Ulf Von Kalckreuth & Tobias Schmidt & Helmut Stix, 2014. "Using Cash to Monitor Liquidity: Implications for Payments, Currency Demand, and Withdrawal Behavior," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(8), pages 1753-1786, December.
    4. Ulf Kalckreuth & Tobias Schmidt & Helmut Stix, 2014. "Choosing and using payment instruments: evidence from German microdata," Empirical Economics, Springer, vol. 46(3), pages 1019-1055, May.
    5. Nicole Jonker & Anneke Kosse & Lola Hernández, 2012. "Cash usage in the Netherlands: How much, where, when, who and whenever one wants?," DNB Occasional Studies 1002, Netherlands Central Bank, Research Department.
    6. Kevin Foster & Erik Meijer & Scott Schuh & Mike Zabek, 2011. "The 2009 survey of consumer payment choice," Public Policy Discussion Paper 11-1, Federal Reserve Bank of Boston.
    7. Peter Mooslechner & Helmut Stix & Karin Wagner, 2006. "How Are Payments Made in Austria?," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 111-134.
    8. Schmiedel, Heiko & Kostova, Gergana & Ruttenberg, Wiebe, 2012. "The social and private costs of retail payment instruments: a European perspective," Occasional Paper Series 137, European Central Bank.
    Full references (including those not matched with items on IDEAS)

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    1. Carlos Arango & Yassine Bouhdaoui & David Bounie & Martina Eschelbach & Lola Hernández, 2013. "Cash Management and Payment Choices: A Simulation Model with International Comparisons," Staff Working Papers 13-53, Bank of Canada.
    2. Dominika Kolcunova & Tomas Havranek, 2018. "Estimating the Effective Lower Bound on the Czech National Bank’s Policy Rate," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 68(6), pages 550-577, December.
    3. Pirmin Fessler & Friedrich Fritzer, 2013. "The Distribution of Inflation among Austrian Households," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 12-28.
    4. Doris Ritzberger-Grünwald & Helmut Stix, 2018. "How Austrians bank and pay in an increasingly digitalized world – results from an OeNB survey," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3/18, pages 52-89.
    5. Christina Burger & Katharina Wolner-Rößlhuber, 2013. "Internet Payment Behavior in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 29-41.
    6. Codruta Rusu & Helmut Stix, 2017. "Cash and card payments – recent results of the Austrian payment diary survey," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1/17, pages 1-35.
    7. Hans Kernbauer, 2016. "Cashless payments in Austria: the role of the central bank," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 120-139.
    8. Anton Schautzer & Helmut Stix, 2019. "Approaching 20 years of euro cash in Austria: What has changed, and what’s next?," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/19, pages 99-112.

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    More about this item

    Keywords

    usage of payment means; payment behavior; retail payments; demand for money; survey data;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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