Changing payment patterns at point-of-sale: their drivers

Based on household surveys from 2004 and 2014 we show how payment patterns in the Netherlands have changed. This data is unique because it covers a long time span and includes detailed information on payment behaviour per point-of-sale (POS). In this period the usage of the debit card has increased sharply. Perceived characteristics of payment instruments have affected both their adoption and the intensity by which they are used. Of these, user-friendliness and safety are the most important drivers of the adoption of electronic payment instruments. Socio-demographic determinants of payment instrument adoption are quite robust over time. However, we find that the relevance of payment characteristics and socio-demographic characteristics for the intensity of use of payment instruments varies per POS and over time when instruments get generally adopted. Overall, user-friendliness is still the most important aspect and safety and speed remained relevant aspects, whereas costs are the least important aspect for the intensity by which payment instruments are used.