Switching from Cash to Cashless Payments during the COVID-19 Pandemic and Beyond

41 Pages Posted: 2 Mar 2021

See all articles by Tomasz Piotr Wisniewski

Tomasz Piotr Wisniewski

Open University, UK

Michal Polasik

Nicolaus Copernicus University

Radosław Kotkowski

Narodowy Bank Polski

Andrea Moro

Cranfield University - School of Management

Date Written: February 28, 2021

Abstract

Using a survey of 5,504 respondents from 22 European countries, we examine preferences regarding cash and cashless payments at the point of sale (POS) during the COVID-19 crisis. Consumers favor cashless transactions when they believe that handling cash presents a higher risk of infection. Moreover, the habits they develop during periods of restrictions and lockdowns appear to further diminish their appetite for transacting in cash. Not only do these factors affect current choice of payment method, but also influence declared future intentions to move away from cash after the pandemic is over.

Keywords: COVID-19, SARS-CoV-2, Cash, Cashless payments, Payment behavior, Habit change, Fear

JEL Classification: E41, E42, I12, I18

Suggested Citation

Wisniewski, Tomasz Piotr and Polasik, Michal and Kotkowski, Radosław and Moro, Andrea, Switching from Cash to Cashless Payments during the COVID-19 Pandemic and Beyond (February 28, 2021). Available at SSRN: https://ssrn.com/abstract=3794790 or http://dx.doi.org/10.2139/ssrn.3794790

Tomasz Piotr Wisniewski (Contact Author)

Open University, UK ( email )

Walton Hall
Milton Keynes, Buckinghamshire MK7 6AA
United Kingdom

Michal Polasik

Nicolaus Copernicus University ( email )

Gagarina 13A
Torun, 87-100
Poland
(0048) 56 611 4634 (Phone)

Radosław Kotkowski

Narodowy Bank Polski ( email )

00-919 Warsaw
Poland

HOME PAGE: http://www.nbp.pl

Andrea Moro

Cranfield University - School of Management ( email )

Bedfordshire, MK43 0AL
United Kingdom

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