How Many Cards Do You Use?

Working Paper No. 13-13
by Oz Shy
2013 Series

This paper investigates how buyers allocate their spending among debit, credit, and prepaid cards. Using the 2012 Diary of Consumer Payment Choice, I show that consumers tend to concentrate the majority of their transactions and a large value of their transactions on a single type of card. The paper also investigates whether buyers concentrate their spending on one of the card networks, a behavior known as "single-homing."

Keywords: payment card use, choice of payment cards, multi-homing, single-homing

JEL Classification: D14

PDF version of paper PDF