Scandinavian Working Papers in Economics
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Bank of Finland Research Discussion Papers, Bank of Finland

No 32/2006:
Finnish consumers' expectations on developments and changes in payment habits. Survey in connection with the research project 'Finnish payment habits 2010'

Tomi Dahlberg and Anssi Öörni

Abstract: The Bank of Finland’s Finnish Payment Habits 2010 project predicts that Finnish payment habits will face substantial changes. The causes for these changes include: the standardisation and integration of European payment systems, development of payment services-related legislation and regulation at EU level, changes in payment services-related cost factors and pricing, and new opportunities offered by technological advances. The last few years have seen a surge in new payment instruments and services. Increasing reliance on information and communication technology is characteristic to the development of these payment instruments, the vast majority of which have however failed to entice consumers. To increase our understanding of changes in payment patterns, this report analyses consumer needs, tastes and payment habits as new payment systems are adopted.

Research data was collected in September 2005 using a mail-survey covering the central payment methods and addressed to 2,000 randomly-sampled Finnish consumers. According to our findings, security and trustworthiness are the most important characteristics of any new payment instrument. Other essential characteristics are the ability to produce good transaction-related information, compatibility with shopping and payment habits, accessibility, ease of use, time and cost savings, as well as time and place independence. New payment instruments – electronic billing and paying for shopping by mobile phone – are not likely to supersede conventional payment methods by 2010 when judged by the aforementioned characteristics: Trust and cost factors do not separate consumers well-disposed towards electronic bills and mobile payments from those set against these payment methods. A relatively restricted group of differentiating factors was found. Ease of use is a common differentiating factor for both electronic bills and mobile payments adoption. Additionally, accessibility is a differentiating characteristic in mobile payments adoption.

Keywords: payment habits; payment services to consumers; consumer behaviour; diffusion of innovations; theory of planned behaviour (TPB); (follow links to similar papers)

JEL-Codes: A14; D14; L81; O33; (follow links to similar papers)

107 pages, December 12, 2006

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