Uncovering the digital payment divide: understanding the importance of cash for groups at risk
Published: 27 June 2023
The ongoing digital transition in the payment landscape offers countless advantages to many people. However, certain segments of the population encounter difficulties navigating this digital world, particularly individuals within groups at risk. Little is known about the payment behaviour and preferences of these groups. Our research focuses on people with low digital literacy, disabilities or financial difficulties. Using rich payment diary data of Dutch consumers, our study reveals that cash is an important means of payment to many. 7% of the respondents in our study say they always use cash at points of sale and 28% indicate they cannot do without cash. Furthermore, we find that cash is especially important for people with low digital literacy, people who are blind or visually impaired, people with limited or no hand function, people with a mild intellectual disability and people who find it difficult to make ends meet on their income.
Keywords: payment behaviour; groups at risk; payment diaries; consumer survey; cash; cards
JEL codes D12; D14; E42; E58
Working paper no. 781
781 - Uncovering the digital payment divide: understanding the importance of cash for groups at risk
Research highlights
- Certain segments of the population encounter difficulties navigating the digital payments world, particularly individuals in groups at risk.
- We use rich payment diary data of Dutch consumers to study the importance of cash and focus on people with low digital literacy, disabilities or financial difficulties.
- 7% of the respondents in our study say they always use cash at points of sale and 28% indicate they cannot do without cash.
- Cash is especially important for people with low digital literacy, people who are blind or visually impaired, people with limited or no hand function, people with a mild intellectual disability and people who find it difficult to make ends meet on their income.
- Our results underline the key role that cash still plays in society. There will always be people for whom the use of digital payments poses significant challenges, and it is therefore essential that cash remains accessible and available.
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