Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264822 
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 230
Publisher: 
Oesterreichische Nationalbank (OeNB), Vienna
Abstract: 
We examine how an innovation in payment technology impacts on consumer payment choice and cash demand. We study the staggered introduction of contactless debit cards between 2016-2018. The timing of access to the contactless technology is quasi-random across clients, depending only on the expiry date of the existing debit card. Our analysis is based on administrative data for over 21'000 bank clients and follows a pre-analysis plan. Average treatment effects show that the receipt of a contactless card increases the use of debit cards especially for small-value payments. However, we find only a moderate average reduction in the cash share of payments and no reduction of average cash demand. Treatment effects on payment choice are strongest among consumers with an intermediate pre-treatment use of cash. Explorative analyses reveal that effects are largely driven by young consumers in urban locations.
Subjects: 
Financial innovation
cash
money demand
payment choice
pre-analysis plan
JEL: 
E41
G20
O33
D14
Document Type: 
Working Paper

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