Cash or Card? Unravelling the Role of Socio-Psychological Factors

We build a model of consumers’ payment behaviour that includes socio-psychological factors and test it empirically by focussing on the choice between cash and electronic payments in the Netherlands. Our model outperforms the traditional model used to explain payment usage. Moreover, we provide useful insights for those who want to understand and steer payment behaviour. How consumers actually pay mainly depends on how they intend to pay and their payment habits. Attitudes, feelings and perceived best-suited payment behaviour are key factors related to payment intentions. Social norms and perceived control over the payment instrument choice matter too.