The Importance of Emotion in Payment Decision Making

A new study published in the Munich Personal RePEc Archive ¹ looks at what influences consumers’ decision to use cash when presented with digital alternatives. The study is particularly interesting because it is based on a survey from Africa, it deliberately focuses on a middle income group, and it focuses on emotional and social factors of behavioural decision making. The study aims to help those tracking and forecasting changes in cash usage.

There is a significant body of existing research focusing on factors determining consumer demand for cash such as consumers’ preferences, service fees, payment innovation diffusion, easy access and, perhaps most importantly, their willingness to change their payment habits.

This study was based on a study of MBA students who had lived in Africa for at least five years, who spoke English, were digitally included and had a middle income. In the end the study is based on data from 24 African countries and 252 usable returns.