Less cash on the counter : forecasting Finnish payment preferences

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dc.contributor Suomen Pankki
dc.contributor.author Jyrkönen, Hanna
dc.date.accessioned 2014-09-22T07:58:28Z
dc.date.available 2014-09-22T07:58:28Z
dc.date.issued 2004
dc.identifier.isbn 952-462-178-9
dc.identifier.issn 0785-3572
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/7655
dc.description.abstract Finnish payment methods have changed rapidly as payment cards have gained increasing popularity and have, to an extent, replaced cash.This article examines this phenomenon and the trends in cash and electronic payment methods in Finland.It starts with an introduction to the statistical data on different payment methods used at points of sale and their electronification, after which learning curve and dynamic regression models are employed to analyse changes in the share of cash payments.Finally, forecasts are presented for the future path of the cash-share.The data indicate that the use of cards, especially debit cards, has increased substantially.For example, in 1984 some 80% of total purchases (in value terms) were made with cash, whereas by 2002 the corresponding figure had dropped below 50%.Estimation results suggest that learning curve models are not suitable for explaining electronification of payment methods in Finland - at least at this stage - whereas the error correction model and its special-case partial adjustment model, coupled with independent explanatory variables, seem to do a better job.A forecast based on the latter indicates that electronification will continue in future and that by 2010 the cash-share of total value of point-of-sale payments will fall to less than 30%.Key words: retail payments, payment instruments, electronification JEL classification numbers: G20, G21, G28
dc.format.extent 51 s.
dc.language.iso eng
dc.relation.ispartofseries Bank of Finland Research Discussion Papers
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject Suomi
dc.subject maksuvälineet
dc.subject maksut
dc.subject maksukortit
dc.subject elektroninen raha
dc.subject tulevaisuus
dc.subject SP
dc.subject käteinen
dc.subject maksutavat
dc.subject RM
dc.title Less cash on the counter : forecasting Finnish payment preferences
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-20140807424
dc.subject.jel G20
dc.subject.jel G21
dc.subject.jel G28
dc.series.name Suomen Pankin keskustelualoitteita
dc.series.name Bank of Finland. Discussion papers
dc.series.year 2004
dc.series.number 27/2004
dc.series.sortingnumber 27
dc.date.publication 26.12.2004
dc.contributor.orgunit Financial Markets Department

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