Features that drive adoption of new payment methods: Evidence from a Discrete Choice Experiment

This study examines which features drive consumer adoption of new digital payment methods in the Netherlands. We conducted a Discrete Choice Experiment in the LISS panel in November 2025 among 2,084 respondents and analyse preferences for six features: the origin of the payment service provider, the functionality, app requirements, privacy, delayed payments, and automatic payment functionalities. The results show that the origin of the provider is the strongest determinant of adoption. Relative to payment methods offered by a Dutch provider, otherwise identical methods offered by European, American or Asian providers are significantly less preferred. Convenience also matters. Respondents prefer payment methods that are integrated into an existing banking app, can be used both online and in stores, and support recurring automatic payments. By contrast, additional features such as offline use and conditional payments add limited utility. A latent class model reveals substantial heterogeneity, distinguishing a small group of reluctant non-adopters from several adopter segments that differ in their sensitivity to the attributes. The findings imply that a broad adoption of new digital payment methods is most likely when trusted governance is combined with convenient, well-integrated functionality. Policymakers, banks and other PSPs should communicate clearly why new payment methods are being developed and how their features benefit consumers in everyday use.

Keywords: digital payments; consumer adoption; discrete choice experiment; payment preferences;
JEL codes D12; C93; G41; E58;

Working paper no. 876