Consumer awareness and the use of payment media : evidence from young finnish consumers

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Title: Consumer awareness and the use of payment media : evidence from young finnish consumers
Author: Hyytinen, Ari ; Takalo, Tuomas
Organization: Suomen Pankki
Series: Bank of Finland Research Discussion Papers
Series number: 2/2008
Year of publication: 2008
Publication date: 5.1.2008
Published in: Published in Review of Network Economics, Volume 8, Issue 2, 2009: 164-188
Pages: 33 s.
Keywords: Suomi; kotitaloudet; maksuvälineet; informaatio; nuoret kuluttajat; tietoisuus
JEL: G20; E59
Abstract: 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
Note: Ilmestynyt myös Review of Network Economics 2009 ; 8 ; 2.

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