Determining the predictors of payment instruments : an empirical study

Abstract

This research set out to determine the predictors of three payment methods, namely, cash, plastic cards, and smart devices, with the aim of using these predictors to provide suggestions on what should be implemented to increase cashless payment instruments in order to ultimately achieve a cashless society in Malta and Gozo. This research was fuelled by the insufficiency of advancements in this area in the country under study. To carry out the above-mentioned study, the author collected data using a questionnaire that targeted individuals who have a bank account and make payments often. The results from the said questionnaire were then analysed using visual representations and logistic regressions. The findings which emerged from the research showed that, while the use of cashless payment instruments is on the rise due to favourable qualities, such as convenience and simplicity, this form of payment is not the first preference for everyone, exceptionally for older people. In fact, age proved to be the most important predictor in choosing a payment method, as well as gender and level of education. On the other hand, the level of consumption proved to be immaterial. This study therefore proposed a number of recommendations based on the findings directed towards the appropriate authorities. The recommendations included strengthening the security of cashless payment instruments, training the population on their handling, and launching campaigns to educate people on a cashless society and why this should not scare them.