The Library
The effect of payment methods on personal finance management
Tools
van den Akker, Merle (2021) The effect of payment methods on personal finance management. PhD thesis, University of Warwick.
|
PDF
WRAP_Theses_vanderAkker_2021.pdf - Submitted Version - Requires a PDF viewer. Download (992Kb) | Preview |
Official URL: http://webcat.warwick.ac.uk/record=b3752312
Abstract
This thesis consists of four independent research studies in the field of behavioural science. Each study is concerned with studying the effect of payment methods on various aspects of personal finance management, such as spending and spending recall.
Chapter 3 studies the effect of contactless on expenditure recall conducting two studies. Study 1 is an observational study, using a survey methodology to approach the effect of contactless payment methods on expenditure recall, finding that the expenditure recall associated with contactless is significantly worse than that associated with cash, but a bit better than that associated with PIN-verified payment methods. Study 2 is a partly online study, randomly allocating participants to one payment method, measuring a variety of individual factors, also using a survey methodology, finding that contactless significantly reduces expenditure recall accuracy compared to cash, as well as compared to PIN-verification.
Chapter 4 studies the effects of the onset of contactless usage on personal finance management, measured in spending, overdraft fees, cash usage, savings and credit card debt. Applying an event study to the transaction data provided by a Financial Aggregator App, we find that contactless usage significantly increases spending frequency and amount, cash usage and savings on the contactless enabled account, and that these effects persist on the contactless user level.
Chapter 5 studies the effects of the onset of mobile payment usage on personal finance management, measured in spending, overdraft fees, cash usage, savings and credit card debt. Applying an event study to the transaction data provided by a Financial Aggregator App, we find that mobile payments significantly increase spending frequency and amount, cash usage and savings, as well as significantly reduce the likelihood of obtaining an overdraft fee, on the mobile payment enabled account. Most of these effects, apart from the significant increase in spending amount, persist on the mobile payment user level as well.
Chapter 6 introduces a new perspective on the behavioural outcomes associated with different payment methods, arguing that it is the change in the underlying spending dis- tribution which drives overspending and underestimation of expenditure. Using the data from the Financial Aggregator App we find that the main variables impacting personal finance management are the number of transactions and the skew of the payment distri- bution. Using an online experiment displaying numerical sequences of varying condition, set length, total, skew and standard deviation, we continue to find that set length and skew significantly impact personal finance management. This chapter raises questions regarding indirect and mediation effects of payment methods, as well as the change in the underlying spending distribution on personal finance management.
I conclude by discussing the importance of understanding the effects of newer payment methods, as well as encouraging further research to dive deeper into the underlying mecha- nisms driving changes in personal finance management, and understanding the additional complexity of indirect and mediated relationships between variables.
Item Type: | Thesis (PhD) | ||||
---|---|---|---|---|---|
Subjects: | H Social Sciences > HG Finance T Technology > TK Electrical engineering. Electronics Nuclear engineering |
||||
Library of Congress Subject Headings (LCSH): | Finance, Personal, Consumption (Economics), Payment, Smart cards | ||||
Official Date: | September 2021 | ||||
Dates: |
|
||||
Institution: | University of Warwick | ||||
Theses Department: | Warwick Business School | ||||
Thesis Type: | PhD | ||||
Publication Status: | Unpublished | ||||
Supervisor(s)/Advisor: | Stewart, Neil, 1974- ; Isoni, Andrea | ||||
Sponsors: | Economic and Social Research Council (Great Britain) ; University of Warwick. Warwick Business School, sponsor. | ||||
Format of File: | |||||
Extent: | xiv, 186 leaves : illustrations | ||||
Language: | eng |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year