Price incentives and consumer payment behaviour

B-Tier
Journal: Journal of Banking & Finance
Year: 2010
Volume: 34
Issue: 8
Pages: 1759-1772

Authors (3)

Simon, John (Macquarie University) Smith, Kylie (not in RePEc) West, Tim (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper we estimate the effect of particular price incentives on consumer payment patterns using transaction-level data. We find that participation in a loyalty program and access to an interest-free period tend to increase credit card use at the expense of alternative payment methods, such as debit cards and cash. Interestingly though, the pattern of substitution from cash and debit cards differs according to the price incentive. An implication of the findings is that the Reserve Bank reforms of the Australian payments system are likely to have influenced observed payment patterns.

Technical Details

RePEc Handle
repec:eee:jbfina:v:34:y:2010:i:8:p:1759-1772
Journal Field
Finance
Author Count
3
Added to Database
2026-01-29