Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80763
Authors: 
Fung, Ben S. C.
Huynh, Kim P.
Sabetti, Leonard
Year of Publication: 
2012
Series/Report no.: 
Bank of Canada Working Paper 2012-14
Abstract: 
Many predict that innovations in retail payment may render cash obsolete. We investigate this possibility in the context of recent payment innovations such as contactless-credit and stored-value cards. We apply causal inference methods on the 2009 Bank of Canada Method of Payment survey, a representative sample of adult Canadians' shopping behaviour for retail consumption over a three-day period. We find that using contactless credit cards and stored-value cards lead to a reduction in average cash usage for transactions both in terms of value and volume. Sensitivity analysis is undertaken and our estimates are robust to hidden bias.
Subjects: 
Econometric and statistical methods
Financial services
Payment clearing
settlement services
JEL: 
E41
C35
C83
Document Type: 
Working Paper

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