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Lookup NU author(s): Professor Darren DuxburyORCiD
This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).
Historically, cash has been noted for its ease and convenience as a payment instrument; however, contactless payments now rival cash in this regard. Using UK survey data at a time when contactless payments were on the rise but not yet fully adopted, we examine the role of consumers’ financial literacy and trait habitual behaviours as drivers of contactless payment ownership. This unique timing allows us to identify a segment of the population without contactless card ownership; a rare opportunity given the current widespread adoption of the technology. We find that consumers’ financial literacy and proneness to routine behaviour are positively associated with ownership of contactless payment cards. Using propensity score matching techniques, we address the ex-ante heterogeneity between individuals exhibiting different levels of financial literacy, habitual behaviour, and non-random selection issues to show that our results are robust to potential endogeneity issues. Our findings can inform policymakers and banks about the adoption patterns of emerging payment technologies, providing insights that are particularly relevant for future technologies facing early-stage adoption challenges.
Author(s): Duxbury D, Liñares-Zegarra J, Verousis T
Publication type: Article
Publication status: Published
Journal: The European Journal of Finance
Year: 2025
Pages: Epub ahead of print
Online publication date: 23/06/2025
Acceptance date: 04/06/2025
Date deposited: 26/06/2025
ISSN (print): 1351-847X
ISSN (electronic): 1466-4364
Publisher: Routledge
URL: https://doi.org/10.1080/1351847X.2025.2517119
DOI: 10.1080/1351847X.2025.2517119
Data Access Statement: Data used in this study are available from the authors on reasonable request.
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