Arbeitspapier

Losing contact: The impact of contactless payments on cash usage

I investigate the impact of contactless credit cards (CTCs) on cash use in Canada, using panel data between 2010 and 2017. I show that ignoring unobserved heterogeneity would lead to overstating the impact of CTCs on cash usage in a linear model. Using finite mixture modelling, I provide evidence of the differential impacts of CTCs on the extensive versus intensive margins of cash usage. I use a two-part model, with an exclusion restriction for better identification, to model both margins separately. I obtain that CTC use negatively influences the intensive margin of cash usage but not its extensive margin. There is no clear evidence of an S-curve pattern in the impact of CTCs on cash usage over the sample period.

Sprache
Englisch

Erschienen in
Series: Bank of Canada Staff Working Paper ; No. 2020-56

Klassifikation
Wirtschaft
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Consumer Economics: Empirical Analysis
Demand for Money
Thema
Bank notes
Digital currencies and fintech
Econometric and statistical methods
Financial services

Ereignis
Geistige Schöpfung
(wer)
Felt, Marie-Hélène
Ereignis
Veröffentlichung
(wer)
Bank of Canada
(wo)
Ottawa
(wann)
2020

DOI
doi:10.34989/swp-2020-56
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Felt, Marie-Hélène
  • Bank of Canada

Entstanden

  • 2020

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