Show me the money! Experimental evidence on preferences for cash vs. digital payment

In places such as rural Bangladesh, cash is the dominant medium for payments despite potential benefits of digital payments. We offer survey respondents an incentive-compatible choice for compensation: 200 Taka cash or randomly varied mobile money amounts (200-400 Taka). Only eight percent chose dig...

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Autores principales: Ambler, Kate, Bakhtiar, M. Mehrab, Bloem, Jeffrey R., Uddin, Mohammad Riad
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2025
Materias:
Acceso en línea:https://hdl.handle.net/10568/178890
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author Ambler, Kate
Bakhtiar, M. Mehrab
Bloem, Jeffrey R.
Uddin, Mohammad Riad
author_browse Ambler, Kate
Bakhtiar, M. Mehrab
Bloem, Jeffrey R.
Uddin, Mohammad Riad
author_facet Ambler, Kate
Bakhtiar, M. Mehrab
Bloem, Jeffrey R.
Uddin, Mohammad Riad
author_sort Ambler, Kate
collection Repository of Agricultural Research Outputs (CGSpace)
description In places such as rural Bangladesh, cash is the dominant medium for payments despite potential benefits of digital payments. We offer survey respondents an incentive-compatible choice for compensation: 200 Taka cash or randomly varied mobile money amounts (200-400 Taka). Only eight percent chose digital payment at parity and respondents exhibit an average willingness-to-pay of 43 percent of the payment value to receive cash payment. This preference persists across demographics, including among mobile money account holders. Within-household analysis reveals that 77 percent of the effect stems from individual-level rather than household-level factors, highlighting the importance of demand-side barriers on digital payments.
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publishDateRange 2025
publishDateSort 2025
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spelling CGSpace1788902025-12-17T13:46:24Z Show me the money! Experimental evidence on preferences for cash vs. digital payment Ambler, Kate Bakhtiar, M. Mehrab Bloem, Jeffrey R. Uddin, Mohammad Riad rural areas payment agreements consumer behaviour smartphones digital technology willingness to pay In places such as rural Bangladesh, cash is the dominant medium for payments despite potential benefits of digital payments. We offer survey respondents an incentive-compatible choice for compensation: 200 Taka cash or randomly varied mobile money amounts (200-400 Taka). Only eight percent chose digital payment at parity and respondents exhibit an average willingness-to-pay of 43 percent of the payment value to receive cash payment. This preference persists across demographics, including among mobile money account holders. Within-household analysis reveals that 77 percent of the effect stems from individual-level rather than household-level factors, highlighting the importance of demand-side barriers on digital payments. 2025-12-16 2025-12-17T00:28:45Z 2025-12-17T00:28:45Z Working Paper https://hdl.handle.net/10568/178890 en https://doi.org/10.2499/p15738coll2.137050 https://doi.org/10.2499/p15738coll2.136944 https://doi.org/10.2499/p15738coll2.136491 Open Access application/pdf International Food Policy Research Institute Ambler, Kate; Bakhtiar, M. Mehrab; Bloem, Jeffrey R.; and Uddin, Mohammad Riad. 2025. Show me the money! Experimental evidence on preferences for cash vs. digital payment. IFPRI Discussion Paper 2385. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/178890
spellingShingle rural areas
payment agreements
consumer behaviour
smartphones
digital technology
willingness to pay
Ambler, Kate
Bakhtiar, M. Mehrab
Bloem, Jeffrey R.
Uddin, Mohammad Riad
Show me the money! Experimental evidence on preferences for cash vs. digital payment
title Show me the money! Experimental evidence on preferences for cash vs. digital payment
title_full Show me the money! Experimental evidence on preferences for cash vs. digital payment
title_fullStr Show me the money! Experimental evidence on preferences for cash vs. digital payment
title_full_unstemmed Show me the money! Experimental evidence on preferences for cash vs. digital payment
title_short Show me the money! Experimental evidence on preferences for cash vs. digital payment
title_sort show me the money experimental evidence on preferences for cash vs digital payment
topic rural areas
payment agreements
consumer behaviour
smartphones
digital technology
willingness to pay
url https://hdl.handle.net/10568/178890
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