innovations on cash usage. We estimate a semiparametric panel data model that accounts for unobserved heterogeneity and allows for … general forms of non-random attrition. We use annual data from the CFM on the methods of payment and cash usage for the period … 2010 - 12. Estimates based on crosssectional methods find a large impact of retail payment on cash usage (around 10 percent …

Many predict that innovations in retail payment may render cash obsolete. We investigate this possibility in the … reduction in average cash usage for transactions both in terms of value and volume. Sensitivity analysis is undertaken and our …