Template-Type: ReDIF-Article 1.0
Author-Name: Tamás Ilyés 
Author-Name: Lóránt Varga
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: ilyest@mnb.hu
Title: Show me how you pay and I will tell you who
you are – Socio-demographic determinants of
payment habits
Abstract: This study is intended to assist in understanding the current payment habits of
Hungarian households and examine the extent to which these habits are affected by
age, education, activity, income or residence. Our research analysed a representative
household survey with a sample of 1,000 respondents using various statistical
tools. The percentage of households holding bank accounts and bank cards is high
and has not changed since 2010, while households’ use of cash has moderately
declined in recent years. The socio-demographic variables under review have
a limited impact on the use of cash-based payment methods. Accordingly, in terms
of both number and value, a similar proportion of households pay their bills via
postal cash payments, irrespective of age and income. The preference for the use
of electronic payment methods is largely driven by education level. While the use
of electronic payment methods generally increases in line with income, cash usage
is still strongly over-represented among one fourth of households with higher-thanaverage
income levels. Age, activity and residence also exert a significant impact
on the adoption of electronic payment methods, but the payment habits of users
of different electronic payment instruments do not generally show differences on
the basis of these features.
Classification-JEL:C38, D12, D14, E42
Keywords: retail payments, payment habits, household behaviour, electronic
payment methods, financial integration
Journal: Financial and Economic Review  
Pages: 25–61
Volume: 14
Issue: 2
Year: 2015
File-URL: http://english.hitelintezetiszemle.hu/letoltes/2-ilyes-varga-en.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:14:y:2015:i:2:p:25-61