Why Is Cash (Still) So Entrenched? Insights From Canadian Shopping Diaries

Publicado en

  • Contemporary Economic Policy


  • Among many developed economies is the predominance of cash over electronic payments in terms of payment frequency, especially for the low-value transactions that are the bulk of retail payments. We use the Bank of Canada's 2009 Methods-of-Payment Survey, which collected information on consumers' payment choices through shopping diaries, to estimate a simple model of choice between cash and other payment methods. Results suggest that the main reasons cash is still a popular payment instrument in Canada, especially for low-value transactions, are its wide acceptance among merchants compared with other alternatives, speed and ease of use, and low marginal cost when on hand.

fecha de publicación

  • 2015

Página inicial

  • 141

Última página

  • 158


  • 33


  • 1