@article{Innovations:1596, recid = {1596}, author = {Fung, Ben and Huynh, Kim and Sabetti, Leonard}, title = {The Impact of Retail Payment Innovations on Cash Usage}, address = {2012}, pages = {1 online resource (iii, 31 pages)}, abstract = {Many predict that innovations in retail payment may render cash obsolete. We investigate this possibility in the context of recent payment innovations such as contactless-credit and stored-value cards. We apply causal inference methods on the 2009 Bank of Canada Method of Payment survey, a representative sample of adult Canadians’ shopping behaviour for retail consumption over a three-day period. We find that using contactless credit cards and stored-value cards lead to a reduction in average cash usage for transactions both in terms of value and volume. Sensitivity analysis is undertaken and our estimates are robust to hidden bias.}, url = {http://www.oar-rao.bank-banque-canada.ca/record/1596}, doi = {https://doi.org/10.34989/swp-2012-14}, }