Credit Card Ownership and Usage Behaviour in Botswana

Abstract

The study examines credit card ownership and usage in Botswana, and their posited association with consumer demographics and attitude toward debt. In this study, we find that credit card ownership and usage in Botswana are relatively high and that these appear to be influenced by consumer demographics and in particular income, age, education, gender and marital status as well as attitude towards debt. Attitude towards debt is generally negative across all groups. However, chi-square results suggest that these findings are not statistically significant. Only age and gender seem to be significantly related to attitude towards debt where the youth and females are more likely than other demographic groups to have negative attitude towards debt. The study recommends segmenting the credit card market in Botswana based on consumer demographics and attitudes towards debt.

Behavioral Analysis of Credit Card Users in a Developing Country: A Case of Bangladesh

“…However, above mention qualities differs among individual users based on their demographic attributes like: credit card ownership and usage are largely influenced by demographic characteristics of users such as gender, age, education level, income, marital status, ethnic background, culture and attitude towards debt (Muhmin & Umar, 2007;Wickramasinghe & Gurugamage, 2009). Empirical research indicates that high income countries have greater tendency to use revolving credit compare to low income countries (Themba & Tumedi, 2012) like Bangladesh. Similarly, there is a strong difference of using credit cards between youngstars' (age 25-35) and middle (age 36-55) and aged (age 55+) people.…”

“…Credit card ownership and usage differs on male and female (Themba & Tumedi, 2012). Females are generally owns and use less revolving credit (Khare et al, 2011) than male as females are less risk tolerance (Dewri, Islam, & Zamman, 2015).…”

“…Females are generally owns and use less revolving credit (Khare et al, 2011) than male as females are less risk tolerance (Dewri, Islam, & Zamman, 2015). On the other hand, in the middle-eastern countries female like to hold more credit card than male as this people akin to do shopping compare than other part of the world (Muhmin & Umar, 2007;Themba & Tumedi, 2012;Kaynak et al, 1995). Interestingly Robb (2011) concluded that college going females are more likely to engage in risky credit card behavior than males.…”

“…This trend's is reaching popularity as a preferred mode of payment for shopping and other various services like: utility bill payments, online payment across the border due to convenient method of payment in lieu of cash, checks, pay order or other way of payment (Themba & Tumedi, 2012;Abdul-Muhmin et al, 2007). Credit card allows its holders to purchase or obtain any goods or services without paying any form of cash by accessing to credit and therefore removing the burden of carrying cash (Rutherford & DeVaney, 2009).…”

Modern Retailing and its Implications for Developing Countries: Insights from Retail Managers

“…According to the African Development Bank (2011), the middle class population in Botswana increased from 18.3 percent in 2008 to 29.3 percent in 2011. The last few decades have also ushered in technological advances in the retail industry in Botswana such as the instant processing of retail purchases using smart cards and the use of point-of sale scanning equipment, which offer customers a convenient means for paying for goods and services as well as security (Themba & Tumedi, 2012).…”