Benefits of the retail payments card market: Russian cardholders' evidence

Perception of Acceptance Barriers and Cashless Payments Value: Evidence From Russian Merchants

“…The choice of two-step Heckman model is also supported by Krivosheya & Korolev (2016) article by the fact that the authors managed to demonstrate that Heckman regression outperformed the alternative approach of running two independent regressions. Finally, the inclusion of regional dummies allows to control for possible regional fixed effects in years the survey was conducted (Krivosheya & Korolev, 2018; Krivosheya, 2018) Generally, Heckman correction for sample selection is vastly used to minimize the selection bias when dealing with non-randomly generated samples (e.g.…”

“…This study contributes to the rising strand of academic literature on the topic of cashless payments (Arango et al, 2015;Arango & Taylor, 2008b;Bounie et al, 2016;Krivosheya & Korolev, 2016, 2018Loke, 2007;Rochet & Tirole, 2002, 2003Rysman, 2007;Weiner & Wright, 2005), and on the issue of merchants' perception effects particularly ( (Arango & Taylor, 2008a; Krivosheya, 2018; Mimouni-Chaabane & Volle, 2010), in several important considerations. Firstly, the study analyzes the acceptance barriers and their perceptions by the merchants in relation to the share of cashless revenue, which allows for estimation and comparison of the effects observed.…”

“…Following this procedure, the effect of barriers' perception or the actual barriers effect on the share of cashless revenues can be examined. It is worth mentioning that the similar approach was applied by Krivosheya & Korolev (2016) to evaluate the benefits of cardholders on the Russian retail market as well.…”

“…A retailer, as any market participant, faces a cost-benefit trade-off regarding the decision of cashless payment system implementation. While the benefits of retail payments card market have been investigated vastly (Krivosheya & Korolev, 2016, 2018Krivosheya, 2018; Mimouni-Chaabane & Volle, 2010), the costs, and especially barriers preventing merchants from card acceptance, have not yet been significantly evaluated in academic literature. Finally, authorities play another key role in spreading the usage and acceptance of card on the market by formulating and executing a specific set of regulatory norms regarding the field.…”

“…So far the existing literature on the topic has been mostly involved in the investigation of card acceptance and usage incentives and barriers, specifically with respect to retail payment market ( As of 2016, around 30 percent of retail payments in Russia were conducted on a non-cash basis, while more than 50 percent of Russian citizens regularly use cashless methods of payment (Krivosheya et al, 2017). The popularity of digital payments has come with a set of benefits offered to the end-users, most of which are either merchants or consumers (Krivosheya & Korolev, 2016, 2018Krivosheya, 2018). However, the expansion of cashless payments is heavily dependent on the environment and its participants.…”