Payment literacy pays off: higher trust and financial inclusion

Working paper 831
Working Papers

Gepubliceerd: 25 maart 2025

Door: Carin van der Cruijsen Jakob de Haan

This paper proposes a payment literacy index, developed using a comprehensive consumer survey in the Netherlands to assess knowledge of both traditional and new payment methods, as well as fraud in the payment system. The index suggests that there is considerable room for improvement in payment literacy. Payment literacy is influenced by a number of personal characteristics, the information sources used, experiences with fraud, and the desire to be well informed about payments. Our findings suggest a positive relationship between payment literacy and trust in the payment system and banks, as well as the likelihood of individuals adopting new payment methods and making payments independently.

Keywords: payment literacy; payments; financial inclusion; financial literacy; trust
JEL codes D12; D83; G50; J16; J33

Working paper no. 831

831 - Payment literacy pays off: higher trust and financial inclusion

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Research highlights

  • This paper proposes a payment literacy index, developed using a comprehensive consumer survey in the Netherlands.
  • Payment literacy is influenced by personal characteristics, information sources, fraud experiences, and the desire to be well informed.
  • Payment literacy pays off: it is positively associated with trust in the payment system and banks and financial inclusion.
  • Our research emphasizes the importance of policies aimed at improving payment literacy and provides pathways to achieving this.

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