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Consumer payment choice during the crisis in Europe: a heterogeneous behaviour?

Author

Listed:
  • Konstantinos Nikolopoulos

    (Bangor University)

  • Konstantia Litsiou

    (Manchester Metropolitan University)

Abstract
In this research paper we investigate the use of payment media from consumers during a financial crisis. The scene is Europe in 2015 and the aftermath - or the very peak for some countries - of the Eurozone crisis. The contrast in the scene is augmented through researching countries at the centre of Eurozone crisis versus far more stable Economies. In the first group and in order of severity of the crisis' impact: Greece, Cyprus and to a lesser extent Spain. In the latter group Sweden and UK. We deployed a quantitative survey-based study for which the instrument was originally constructed in the medium of English and translated (and back-translated) in Greek and Spanish, and was delivered both hand-to-hand (printout) and online via Survey monkey. Descriptive statistics are presented over the totally 1003 gathered questionnaires and a comparative analysis is performed illustrating indeed an heterogeneous behaviour among the five countries under investigation. All the above comprise the empirical part of our research, that follows naturally and complements the theoretical one: a deductive model of the hierarchy of payment media - and the respective changes of - during periods of financial distress. Within that model our main hypothesis is formed around the regional differences and the impact of the crisis in the use of cash as a payment medium, both confirmed by our empirical evidence to a large extent. So during the Eurozone crisis: a) the use of cash as a payment medium is evident, and b) this is more the case in countries mostly affected from the crisis - most notably Greece.

Suggested Citation

  • Konstantinos Nikolopoulos & Konstantia Litsiou, 2019. "Consumer payment choice during the crisis in Europe: a heterogeneous behaviour?," Working Papers 19007, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    • Handle: RePEc:bng:wpaper:19007
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    File URL: https://www.bangor.ac.uk/business/research/documents/BBSWP-19-07.pdf
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    References listed on IDEAS

    as
    1. John Bagnall & David Bounie & Kim P. Huynh & Anneke Kosse & Tobias Schmidt & Scott Schuh, 2016. "Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data," International Journal of Central Banking, International Journal of Central Banking, vol. 12(4), pages 1-61, December.
    2. Yiannis Kitromilides, 2013. "Stories, Fables, Parables, and Myths: Greece and the Euro Crisis, Toward a New Narrative," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(3), pages 623-638.
    3. Bátiz-Lazo, Bernardo & Haigh, Thomas & Stearns, David L., 2014. "How the Future Shaped the Past: The Case of the Cashless Society," Enterprise & Society, Cambridge University Press, vol. 15(1), pages 103-131, March.
    4. John Bagnall & David Bounie & Kim P. Huynh & Anneke Kosse & Tobias Schmidt & Scott Schuh, 2016. "Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data," International Journal of Central Banking, International Journal of Central Banking, vol. 12(4), pages 1-61, December.
    5. Kevin Foster & Erik Meijer & Scott Schuh & Mike Zabek, 2011. "The 2009 survey of consumer payment choice," Public Policy Discussion Paper 11-1, Federal Reserve Bank of Boston.
    6. Kevin Foster & Scott Schuh & Hanbing Zhang, 2013. "The 2010 Survey of Consumer Payment Choice," Research Data Report 13-2, Federal Reserve Bank of Boston.
    7. Crystal Ossolinski & Tai Lam & David Emery, 2014. "The Changing Way We Pay: Trends in Consumer Payments," RBA Research Discussion Papers rdp2014-05, Reserve Bank of Australia.
    8. L. R. Wray, 1990. "Money and Credit in Capitalist Economies," Books, Edward Elgar Publishing, number 474.
    9. Kuroda, Akinobu, 2008. "What is the complementarity among monies? An introductory note," Financial History Review, Cambridge University Press, vol. 15(1), pages 7-15, April.
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    Cited by:

    1. Konstantinos Nikolopoulos & Konstantia Litsiou, 2019. "When the bank is closed, the cash is king; ... not!," Working Papers 19008, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).

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    More about this item

    Keywords

    Financial Crisis; Banks; Europe; Households; Payment media;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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