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COVID-19 pandemic increases the divide between cash and cashless payment users in Europe

Year: 2021

Type: article

Abstract: This paper investigates how the COVID-19 pandemic has changed an important aspect of everyday life, viz. how people make payments. The empirical study is based on a survey of over 5000 respondents from 22 European countries. It shows that consumers who had been making cashless payments prior to the outbreak of the pandemic have been even more likely to do so since it broke out. On the other hand, the consumers who had mostly been paying in cash have often continued to do so. The divide between those who pay in cash and those who do not, therefore, seems to have widened during the pandemic. It may suggest financial inclusion issues. Additionally, we found that the probability of more frequent cashless payments as a result of the pandemic differs considerably between countries and therefore indicate the role of country-specific factors.

Source: Economics Letters

DOI: 10.1016/j.econlet.2021.110139

Authors: Radoslaw Kotkowski, Michal Polasik

Institutions: National Bank of Poland, Nicolaus Copernicus University

Language: English

Topic: COVID-19 Pandemic Impacts

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Decent work and economic growth, Good health and well-being

Open Access status: hybrid

Estimated APC paid: $2,000