Factors affecting the consumers’ choice of payment instrument in Poland

Abstract

Purpose: This contribution presents the main findings of a recent survey on consumer payment behavior in Poland. The authors aim to determine the factors influencing the choice of the payment instrument by consumers. This in order to better understand the reason why cash is still the main paying instrument being used by Polish consumers. Design/Methodology/Approach: A survey was carried out between the 7th and 21st February 2019, using Computer-Assisted Personal Interview (CAPI), administered on a nationwide sample of Polish nationals aged 15 and above. A total of 1005 interviews were conducted. To ensure the representativeness of the collected data, the edge weighting was applied in accordance with the structure of the Polish population, including variables of gender, age, and education and the iterative technique (rim weighting). Findings: Findings show that despite the development of the cashless payments, the position of cash is still powerful, because it fulfills consumers’ expectations and although, the role of cashless payments increases, this is not happening at the fast pace that the institutional stakeholders of the financial market would expect. Cash in many respects has a lead on the market of the consumer payments, both with respect to the ease of use and the cost of transaction. Practical implications: Understanding consumer trends in their use of payment methods is important for policy makers, the economy in general and the National Central Bank which need reliable statistical data to enable comparison with other countries on the levels of development in their payment systems, the determination of monetary policy and to carry out strategic decisions concerning the cash cycle and the effectiveness of the payment system. Originality/Value: Without precise knowledge of how people actually pay for goods and services, a country is devoid of solid statistical foundations and will result in speculation.