This study aims to empirically examine the impact of the price structure of two-sided markets on transaction volume and market share (MS) in the context of the Korean credit card industry. The Korean credit card market differs from those in the United States (U.S.) or Europe in terms of...

This paper aims to ascertain the determinants by which individuals decide to use credit cards as a payment method rather than cash; that is, to understand changes in socioeconomic factors on the long-term use of alternatives to cash. Using the data from the waves (2002-2017) of the Spanish...

Search costs for lenders when evaluating potential borrowers are driven by the quality of the underwriting model and by access to data. Both have undergone radical change over the last years, due to the advent of big data and machine learning. For some, this holds the promise of inclusion and...

Search costs for lenders when evaluating potential borrowers are driven by the quality of the underwriting model and by access to data. Both have undergone radical change over the last years, due to the advent of big data and machine learning. For some, this holds the promise of inclusion and...

Banks impose a variety of account fees, and credit card issuers impose a variety of fees related to card usage. Using detailed data from a 2021 representative diary survey of US consumers, we investigate whether lower-income consumers and Black consumers are more likely to pay bank account or...

Using transaction data from a US consumer payments diary, we revisit the credit card debt puzzle-a scenario in which consumers revolve credit card debt while also keeping liquid assets as bank account deposits. This scenario is very common: 42 percent of consumers in our sample were...

We present a new approach for estimating private equity returns using secondary market prices for entrepreneurial business credit card securitizations. We show that the market requires a significantly higher premium for entrepreneurial credit risk than for household credit risk. Entrepreneurial...

The U.S. credit card market is highly concentrated and highly profitable, two facts which have drawn scrutiny of its competitive practices. I study competition in this market by analyzing how lenders target and acquire new customers using direct-mail, their principal acquisition channel. I find...

The market for payments is an important two-sided one, where consumers benefit from increased merchant acceptance of payment cards and vice versa. The dependence between the decisions that are made on each side of the market results in various network externalities that are often discussed but...

The use of paper instruments-cash and checks-has been declining in the United States, and consumers have been gradually replacing paper with cards and electronic payments. Stavins (2021) examines the evolution of payments from paper to cards and electronic payments, while Shy (2020) shows the...

Does mental accounting matter for total consumption expenditures? We exploit a unique setting in which individuals exogenously received a new credit card, without requesting one. Using random variation in the time of receipt we show that individuals temporarily increase total consumption...

There are many market segmentations in the credit card industry in Malaysia. One of the special categories of credit card is dedicated to the women group only and promoted as a tool for increasing women empowerment, women entrepreneurship development and women financial access ability....

We provide the first economic research on `buy now, pay later' (BNPL): an unregulated FinTech credit product enabling consumers to defer payments interest-free into instalments. In 2021 transactions by BNPL firms are charged to 19.5% of active credit cards in our UK data. Charging a 0% interest,...

For agricultural productivity, credit is a necessary input. India's economy is based mostly on agriculture. The Kisan Credit Card (KCC) seeks to offer farmers timely and appropriate funds in a flexible and cost-effective manner. The inauguration of the Kisan Finance Card Scheme is a watershed...

In response to the economic hardships stemming from COVID-19, many U.S. card-issuing banks offered measures to assist their customers who were financially affected by the pandemic. Unlike previous disaster assistance programs that were typically short in duration and localized, the COVID-19...

Unsecured borrowing plays an important role for consumers in smoothing consumption. Each year, almost 40% of U.S. households have credit card debts and 4% borrow using a high-cost payday loan. This paper aims to explore the similarities and differences between both types of borrowers. Using the...

The COVID-19 pandemic induced a volatile pattern in household expenditures on a global scale. In this study, we analyse the mitigating effect of vaccination trends on pandemic-related depression in expenditures by exploiting province-level high-frequency credit and debit card data from a large...

In modern times, credit card theft has developed a major concern for banks, as identifying fraud in the credit card system has become increasingly difficult. Machine learning plays a key role in detecting credit card fraud in transactions in order to address this challenge. Banks utilize a...

How do macroeconomic expectations affect consumer decisions? We examine this question using an experiment with 2,872 credit card customers at a large commercial bank. We provide participants with expert forecasts of inflation and the nominal exchange rate and measure the consumption response to...

We investigate bank relationships in a rarely considered context – consumer and small business credit cards. Using over one million accounts, we find during normal times, consumer relationship customers enjoy relatively favorable credit terms, consistent with the bright side of relationships,...

We study credit card rewards as an ideal laboratory to quantify the cross-subsidy from naive to sophisticated consumers in retail financial markets. Using granular data on the near universe of credit card accounts in the United States, we find that sophisticated consumers profit from reward...

Credit unions and banks charge retailers that accept their credit cards a fee, referred to as interchange, for processing each transaction. The fee is a proportion of the transaction and generally depends on the volume of business, the risk of fraud in each transaction, the goods or services...

Financial technology is a powerful tool in financial infrastructure, used to strengthen and smooth the delivery of financial services into the broader space. Financial technology involves software, applications, and other technologies designed to improve and automate traditional forms of...

A wide range of recent studies are focusing on current issues of financial fraud, especially concerning cybercrimes. The reason behind this is even with improved security, a great amount of money loss occurs every year due to credit card fraud. In recent days, ATM fraud has decreased, while...

Using transaction data from a US consumer payments diary, we revisit the credit card debt puzzle—a scenario in which consumers revolve credit card debt while also keeping liquid assets as bank account deposits. This scenario is very common: 42 percent of consumers in our sample were...

Using transaction data from a US consumer payments diary, we revisit the credit card debt puzzle-a scenario in which consumers revolve credit card debt while also keeping liquid assets as bank account deposits. This scenario is very common: 42 percent of consumers in our sample were...

Cash use in most countries is falling slowly. On the margin, younger adults favor cash substitutes over cash. For older adults it is the reverse. Revealed preference tied to a changing population age structure seems to be the main influence on the demand for cash and why it is falling. Cash use...

Um ihren Fokus auf Nachhaltigkeit zu unterstreichen bieten vereinzelte Banken in Deutschland und der Schweiz ihrer Kundschaft seit kurzem Kreditkarten aus Holz. Wie nehmen die Kunden diese Karten in Bezug auf die Nachhaltigkeit der Karte und der Bank wahr? Auf Basis der...

This study shows that individuals' habits in grocery shopping are incrementally useful in predicting their credit card payment behaviors and that such incremental predictive power can translate into incremental profits for firms. Guided by prior work, we identify five broad grocery shopping...

We study the relationship between interchange fees and card transactions in a large panel of countries and assess the impact of the Interchange Fee Regulation, introduced in 2015 in the European Union, on card usage. For our purposes, we take advantage of a newly assembled dataset covering...

In March 2020, the Reserve Bank of India's guidelines on Payment Aggregators and Payment Gateways prohibited merchants from storing data on cards used by customers. This paper argues that a total prohibition on card data storage is problematic as it affects the ease of transactions for...