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Payment Behaviour in Germany in 2009

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Payment Behaviour in Germany in 2009 Payment behaviour in Germany An empirical study of the selection and utilisation of payment instruments in the Federal Republic of Germany Deutsche Bundesbank 2009 Deutsche Bundesbank Wilhelm-Epstein-Straße 14 60431 Frankfurt am Main (Germany) Postfach 10 06 02 60006 Frankfurt am Main (Germany) Tel +49 (0)69 95 66 – 1 Fax +49 (0)69 5 60 10 71 internet http://www.bundesbank.de Prepared by Andreas Hoffmann/Dr Heike Wörlen (coordination), Andrea Friedrich, Nadine Knaust, Dr Ulf von Kalckreuth, Dr Tobias Schmidt Completed on 30 June 2009 May only be re-printed if the source is stated. - II - Table of contents List of figures......................................................................................................................... V List of tables ......................................................................................................................... VI I. Definition of the problem, and design of the study .....................................................1 II. Comparative analysis of cash and cashless payment instruments...........................3 II.1. Explanation of the payment instruments investigated ...............................................3 II.2. Selection of payment instruments .............................................................................7 II.2.1. Reasons determining the acceptance of payment instruments by retailers and other service providers ........................................................................................8 II.2.2. Reasons determining the acquisition of payment instruments by customers ......9 II.2.2.1. Convenience and speed ................................................................................9 II.2.2.2. Acceptance ..................................................................................................12 II.2.2.3. Possibilities for use abroad..........................................................................15 II.2.2.4. Possibilities for use on the internet ..............................................................17 II.2.2.5. Protection against financial loss...................................................................19 II.2.2.6. Overview of expenditure ..............................................................................22 II.2.2.7. Costs............................................................................................................24 II.2.2.8. Anonymity ....................................................................................................28 II.2.2.9. Familiarity and experience...........................................................................30 II.2.2.10. Receiving benefits .......................................................................................32 II.2.2.11. Summary .....................................................................................................33 II.2.3. Customers’ situational selection at the point of sale..........................................37 III. Utilisation of cash and cashless payment instruments ............................................40 III.1. Ownership and utilisation of payment instruments ..................................................40 III.1.1. Cash stock in people’s wallets...........................................................................40 III.1.2. Ownership and utilisation of payment cards ......................................................42 III.2. Evaluation of payment behaviour according to the payments diary ........................46 - III - III.2.1. General benchmarks/overviews ........................................................................46 III.2.2. Evaluation of payment behaviour by socio-demographic characteristics and card ownership ...........................................................................................52 III.2.3. Evaluation of payment behaviour by place and purpose of payment ................61 III.2.3.1. Place and purpose of payment ....................................................................61 III.2.3.2. Utilisation of payment instruments according to place and purpose of payment ...................................................................................................62 III.2.4. Summary ...........................................................................................................66 IV. Choosing between payment instruments and their usage – a microeconometric behavioural analysis.....................................................................................................68 IV.1. Questions and introductory remarks........................................................................68 IV.2. Analysis framework .................................................................................................70 IV.3. The measurement of cash payment rates – dependent variables...........................71 IV.4. Variables to measure potential influencing factors on the cash payment rate.........71 IV.5. Results.....................................................................................................................74 IV.6. Conclusions .............................................................................................................77 V. Development and outlook of payment behaviour in Germany .................................79 Annex ....................................................................................................................................85 List of references .................................................................................................................98 - IV - List of figures Figure 1: Overview of cashless means of payment and payment instruments ........................4 Figure 2: Evaluation of the criteria “convenience and speed” ................................................12 Figure 3: Evaluation of the criterion “acceptance”..................................................................14 Figure 4: Evaluation of the criterion “Possibility of utilisation abroad” ....................................17 Figure 5: Evaluation of the criterion “possibility to use on the internet”..................................19 Figure 6: Evaluation of the criterion “protection against financial loss” ..................................22 Figure 7: Evaluation of the criterion “overview of expenditure” ..............................................24 Figure 8: Overview of the time of debiting of payment instruments .......................................25 Figure 9: Evaluation of the criterion “costs”............................................................................28 Figure 10: Evaluation of the criterion "anonymity"..................................................................30 Figure 11: Evaluation of the criterion “familiarity and experience” .........................................32 Figure 12: Evaluation of the criterion “receiving benefits” ......................................................33 Figure 13: Significance of the criteria of payment instruments from the users’ point of view.34 Figure 14: Fulfilment of the criteria by payment instruments from the users’ point of view....36 Figure 15: Criteria for the selection of a payment instrument at the POS ..............................39 Figure 16: Cash stock in people’s wallets ..............................................................................41 Figure 17: Ownership and use of payment cards...................................................................43 Figure 18: Credit card ownership and use by level of education............................................45 Figure 19: Average payment amount per payment instrument ..............................................48 Figure 20: Spread of the payments across the amount ranges .............................................49 Figure 21: Self-assessment of cash and card use per amount range....................................51 Figure 22: Use of payment instruments according to age group............................................53 Figure 23: Use of payment instruments according to gender.................................................54 Figure 24: Use of payment instruments according to level of education................................55 Figure 25: Use of payment instruments according to income groups ....................................57 Figure 26: Use of payment instruments according to origin (migration background and western/eastern federal states) ............................................................................58 Figure 27: Use of payment instruments according to employment status..............................60 Figure 28: Utilisation of payment instruments according to place and purpose of payment ..65 Figure 29: Value of all card payments as a share of gross domestic product (as a percentage)...........................................................................................................68 - V - List of tables Table 1: Structure of the cash stock in people’s wallets.........................................................42 Table 2: Share of payment instruments by turnover and number of transactions..................47 Table 3: Share of payment instruments in different amount ranges.......................................50 Table 4: Number and value of transactions by place and purpose of payment .....................62 - VI - I. Definition of the problem, and design of the study Cash continues to be consumers’ preferred payment method. Nonetheless, the turnover share of cash transactions
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