Browsing by Subject "E59"

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  • Hyytinen, Ari; Takalo, Tuomas (2008)
    Bank of Finland Research Discussion Papers 2/2008
    Published in Review of Network Economics, Volume 8, Issue 2, 2009: 164-188
    In the market for payment media, some consumers use only one medium when paying for their point-of-sale transactions, while others use many. This pattern reflects the diffusion of new payment media, because a payment method innovation is typically first used simultaneously with the established methods. We study the use of multiple payment media by employing data on young Finnish consumers. We find that the use of multiple payment media is directly related to consumer awareness and that not controlling for the endogeneity of awareness can bias its effect downwards. These results suggest that increasing consumer awareness may have been underlying the rise of debit card use around the world. It could also speed up the adoption of new means of payment, such electronic money and mobile payments. To the extent that antitrust concerns in the market for payment media stem from the lack of information, improving consumer awareness could be a remedy. Keywords: payment media, consumer awareness, adoption of financial technology JEL classification numbers: G200, E590
  • Hyytinen, Ari; Takalo, Tuomas (2004)
    Suomen Pankin keskustelualoitteita 25/2004
    In the market for payment media, some consumers use only one medium when paying for their point-of-sale transactions, while others multihome and use many.As this pattern reflects the diffusion of new payment media, we take a look at the determinants of the adoption of new payment media through the window of multihoming. Using data on young Finnish consumers, we find that one key determinant of multihoming behaviour is consumer awareness.Our instrumental variable estimates indicate that the better informed use 1.2-1.3 times more payment media than the less informed. Because many payment method innovations are typically first used simultaneously with established methods, our results suggest that increasing consumer awareness could significantly speed up the adoption of new means of payment, such electronic money and mobile payments.Key words: payment media, multihoming, consumer awareness, adoption of financial technology JEL classification numbers: G200, E590