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1 – 10 of over 2000
Article
Publication date: 9 March 2020

Dung Phuong Hoang and Thong Huy Vu

This research provides a new perspective in explaining cardholders' willingness to use debit cards instead of cash by applying the transaction costs economic theory. This…

Abstract

Purpose

This research provides a new perspective in explaining cardholders' willingness to use debit cards instead of cash by applying the transaction costs economic theory. This study also expands the adaptation of transaction cost economics theory in explaining consumer behaviour by investigating the moderating effects of income and education level on the relationship between perceived transaction costs and willingness to use debit cards.

Design/methodology/approach

The conceptual framework was developed primarily from the transaction cost economics theory. An in-depth interview method was employed to further support hypothesis development and the development of measurement scales. A structural equation model linking asset specificity, behavioural uncertainty, environmental uncertainty, frequency of payment, perceived monitoring costs, perceived adaptation costs and willingness to use debit cards was tested using data from a sample of 384 Vietnamese debit card holders.

Findings

This study's results support the transaction cost economics theory that asset specificity, uncertainty and frequency of payment all positively contribute to the perceived transaction costs associated with debit card usage. However, only environmental uncertainty and perceived adaptation costs have significant negative impact on willingness to use debit cards, with the relationship between environmental uncertainty and willingness to use debit cards being totally mediated by perceived adaptation costs. Moreover, the relationship between perceived adaptation costs and willingness to use debit cards becomes less negative among richer and better-educated cardholders.

Practical implications

The research provides insights into the hidden obstacles for developing cashless economies, thereby supporting policy makers in designing more effective and comprehensive strategies to make debit cards more widely used as a true substitute for cash.

Originality/value

This study provides a new lens in explaining customer willingness to use debit cards, while expanding the transaction costs economics theory by incorporating demographic factors as moderators in the relationship between transaction costs and the card-or-cash choice.

Details

International Journal of Bank Marketing, vol. 38 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 24 July 2009

Steve Worthington

This paper aims to discuss the prevention of complacency regarding payment card fraud, particularly the debit card.

3121

Abstract

Purpose

This paper aims to discuss the prevention of complacency regarding payment card fraud, particularly the debit card.

Design/methodology/approach

Based on research already carried out on payment card fraud in France, Spain and the UK, the paper extends the analysis of fraud to the payment with respect to cards in use in Australia.

Findings

It was found that payment card fraud, particularly on MasterCard and Visa branded debit cards, is often hidden amongst the statistics for overall payment card fraud and yet, with the enhanced functionality of such cards, re: online and international transactions, added to the increasing sophistication of the card fraudsters, there is a present and ever increasing risk of debit card fraud.

Originality/value

Whilst payment card fraud is often dealt with under credit cards, there has been no prior work on debit card fraud.

Details

International Journal of Bank Marketing, vol. 27 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 2 March 2010

Thomas Foscht, Cesar Maloles, Bernhard Swoboda and Swee‐Lim Chia

This exploratory study seeks to explore the link between the choices of payment mode to customer satisfaction. It examines the Austrian market in relation to its choice…

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Abstract

Purpose

This exploratory study seeks to explore the link between the choices of payment mode to customer satisfaction. It examines the Austrian market in relation to its choice and usage of debit cards versus credit cards and its impact on customer satisfaction and loyalty. Furthermore, the study aims to identify the key drivers of customer satisfaction for these two modes of electronic payment.

Design/methodology/approach

A structured questionnaire was administered in person to 360 Austrian bank customers. These customers were selected using quota sampling based on Austrian census data for a particular Austrian province. However, while the quota sampling was used to determine the categories, selection of the actual respondents was done through systematic sampling. This ensured that the sample was representative of the population of that Austrian province who had credit and debit cards. One group, women who were 65 and older, were not considered as there were relatively few women in this age range who had debit and credit cards.

Findings

Five hypotheses were proposed. Four of the five hypotheses were supported while one, H4, had partial support. Essentially, the results indicate that a person's preference for a particular payment method is dependent on his/her personal characteristics. Additionally, the payment method's features and characteristics influenced its desirability and acceptance. Furthermore, a person's expectations had an impact on his/her attitude toward the payment method. The study also found that positive expectations, performance, and desires led to customer satisfaction. Customer satisfaction, in turn, leads to a higher degree of intent to use the payment method and higher degree of intent to recommend the payment method. These results are consistent with the literature on customer satisfaction that identifies expectations, performance and desires as the drivers of customer satisfaction.

Originality/value

Multiple payment modes have emerged but there has been scant attention paid to the effects of payment modes on customer behavior and by extension, customer satisfaction and loyalty. This paper addresses these issues.

Details

International Journal of Bank Marketing, vol. 28 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 23 November 2021

Sophia T. Anong and Aditi Routh

This study examines the relationship between prepaid debit card use and the intention to open a bank account within twelve months. The Transtheoretical Model (TTM) of…

Abstract

Purpose

This study examines the relationship between prepaid debit card use and the intention to open a bank account within twelve months. The Transtheoretical Model (TTM) of Behavior Change helped to conceptualize one's stage in the process of changing from unbanked status if desired. The Theory of Planned Behavior (TPB) provided a framework to examine factors that influence banking intention. Prepaid debit card use is considered a social norm as it is a popular alternative to banking, and these accounts have increasingly mimicked bank account features in recent years.

Design/methodology/approach

Three in-depth focus group interviews with low-income respondents were first conducted in 2012, which revealed a prolific use of prepaid debit cards. Most participants had previous banking history, and despite negative experiences, some requested information about banking terms and “free” banking. These themes and previous studies informed a TPB-based biprobit model, which was estimated using data of an unbanked sample from 2013, 2015 and 2017 waves of the US Survey of Unbanked and Underbanked Households.

Findings

Though there was banking interest in the focus groups, no significant empirical association was found between recent prepaid debit card use and banking intention. Going deeper with another sample, we found that current cardholders were equally likely to have become recently banked or to be long-term unbanked but less likely to be long-term banked. Also, factors such as a more recent relationship with banks, use of other alternative financial services for transactions and credit, smartphone ownership, and trust increase banking intention.

Research limitations/implications

The main limitation of the study is the cross-section quantitative data. Future research may track banking status over time, particularly as financial technology (fintech) evolves with alternatives that may influence banks and customers to adapt.

Practical implications

To compete with “leapfrog” fintech banking alternatives, bank managers should consider utilizing customer segmentation to target “at-risk” customers and former customers with products and terms tailored to meet their banking needs. Banks can also tailor digital products to capture markets in banking desserts through mobile phones.

Originality/value

This mixed-methods study is unique in that it builds on insights from earlier in-depth interviews with real unbanked groups to examine a trend in prepaid debit card use and the impact on banking interest.

Details

International Journal of Bank Marketing, vol. 40 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 October 1996

Steve Worthington

Explains that the smart card is increasingly being held and used by consumers in the UK, particularly in its electronic purse or loyalty card capacity. The smart card is a…

2665

Abstract

Explains that the smart card is increasingly being held and used by consumers in the UK, particularly in its electronic purse or loyalty card capacity. The smart card is a plastic card that carries an embedded computer chip with memory and interactive capabilities. Describes the current major payment options open to consumers, and accepted by retailers, with a review of the costs and benefits of each payment option. Considers the electronic purse pilot of Mondex as a new payment option and looks at the issues facing retailers with the introduction of smart cards. Concludes that acceptance of the smart card as a new payment option depends heavily on retailers’ attitudes and these will be formed by the so‐far unquantified balance of costs and benefits that will accompany the introduction of the smart card.

Details

International Journal of Retail & Distribution Management, vol. 24 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 July 1995

Steve Worthington

The cashless society, where clumsy and expensive‐to‐handle coinsand notes are replaced by efficient electronic payments initiated byvarious types of plastic cards is a…

9078

Abstract

The cashless society, where clumsy and expensive‐to‐handle coins and notes are replaced by efficient electronic payments initiated by various types of plastic cards is a tantalizing prospect for the twenty‐first century. Some of the interested parties stand to gain more than others if the cashless society becomes a reality. Outlines the rationale of those who are keen to promote the cashless society and the implications for marketeers charged with winning consumer acceptance for payment by plastic card. Commencing with a European‐wide view of the European plastic card market, focuses on recent developments within the UK, one of Europe′s leading countries in the use of plastic cards as a means of payment. The plastic card payment product is analysed under the three headings of pay later, pay now and pay before and a view is offered as to the future prospects for each type of plastic card in contributing to the development of the cashless society.

Details

International Journal of Retail & Distribution Management, vol. 23 no. 7
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 September 2000

Steve Worthington and Vic Edwards

Reports on research into the payments markets of both Australia and the UK, in the context of the concept of relationship marketing. It compares the evolution of the…

3445

Abstract

Reports on research into the payments markets of both Australia and the UK, in the context of the concept of relationship marketing. It compares the evolution of the various types of payment; cash, paper cheques, debit and credit cards and examines the linkages with relationship marketing from both a market‐based approach, to investigate whether data derived from consumer payments can form the basis of a relationship, and from a network‐based approach, to consider how new entrants to the payments market can establish relationships between organisations. Conclusions on this study are then followed by some thoughts on the directions for future research.

Details

International Journal of Bank Marketing, vol. 18 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 September 1998

Steve Worthington

Considers distribution in the financial services. Financial services providers face a wide choice in the combinations of channels that they can employ to market their…

1938

Abstract

Considers distribution in the financial services. Financial services providers face a wide choice in the combinations of channels that they can employ to market their products. Asserts that plastic cards are increasingly replacing paper cheques and credits and have become a key channel of distribution for the money transmission services. Continues by reviewing the possible advantages of chip‐based plastic payment cards. Discusses how they would allow all the different payment functions to be held on one piece of plastic and, therefore, provide complete financial management for the cardholder. Considers the adoption of plastic cards in the card centric countries of Japan and the UK.

Details

International Journal of Bank Marketing, vol. 16 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 11 May 2010

Alhassan G. Abdul‐Muhmin

The purpose of this paper is to examine how the monetary value of a retail transaction (transaction size) impacts consumers' preferences for cash, debit and credit card

2708

Abstract

Purpose

The purpose of this paper is to examine how the monetary value of a retail transaction (transaction size) impacts consumers' preferences for cash, debit and credit card payment modes.

Design/methodology/approach

Drawing on the analytical and empirical literature on retail payment mode choice and the related literature on differences in payment mode attributes, the author develops and tests a hypothesis that at retail point of purchase, cash, debit and credit card will be preferred payment modes for low‐, medium‐ and high‐value transactions, respectively. The hypothesis is tested in an experimental survey in which a sample of 477 respondents indicate which payment mode they would most likely use for each of ten products that vary systematically in list prices.

Findings

The results offer broad support for the hypothesis. They also show that preferences for debit and credit card payment modes are similar at low transaction values (both are less preferred), whilst those for debit and cash payment are similar at large transaction values (again, both are less preferred). This suggests that electronic payment modes are collectively a substitute for cash for low transaction values, whilst credit cards are a substitute for cash and debit cards for high transaction values.

Research limitations/implications

A key implication of the results is that it may be possible to persuade consumers in the study context to use electronic payments for small‐value transactions by invoking and making salient, convenience considerations that are purported to drive preferences for cash payment for such purchases.

Originality/value

The results also offer an alternative explanation for the continuing dominance of cash transactions in modern economies, and outlines implications for promoting consumer use of electronic payment modes at retail point of purchase.

Details

International Journal of Retail & Distribution Management, vol. 38 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 November 2001

Steve Worthington

Describes the importance of plastic payment cards at the point of sale (POS) and the evolution of the credit card in general and affinity cards in particular. Suggests…

5490

Abstract

Describes the importance of plastic payment cards at the point of sale (POS) and the evolution of the credit card in general and affinity cards in particular. Suggests reasons for both the growth of plastic card payments (the cashless society) and the threats to affinity cards (the interchange fee). Places the affinity credit card within the paradigm of relationship marketing and emphasises the triadic nature of these relationships. Discusses the development of the research into affinity credit cards and the issues of branding and trust that impact upon the triadic relationships. Explores the potential for affinity marketing and reports on research into trust and ethics which is relevant to this concept. Places affinity marketing within the retail arena and finally draws conclusions on the future for payments at the POS, relationships operationalised via plastic cards and triadic affinities.

Details

International Journal of Retail & Distribution Management, vol. 29 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

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