The Move Toward a Cashless Society: A Closer Look at Payment Instrument Economics

27 Pages Posted: 12 Jan 2005

See all articles by Daniel D. Garcia-Swartz

Daniel D. Garcia-Swartz

Charles River Associates - Chicago Office

Robert W. Hahn

Technology Policy Institute; University of Oxford, Smith School

Anne Layne-Farrar

Charles River Associates; Northwestern University

Date Written: October 2004

Abstract

Ever since the first general-purpose charge card debuted in the early 1950s, pundits have been predicting the cashless society. Over fifty years later, we may finally be getting close to that vision. This study is the first to examine empirically the move toward a cashless society using a cost-benefit framework. We find that when all key parties to a transaction are considered and benefits are added, cash and checks are more costly than many earlier studies suggest. In general, the shift toward a cashless society appears to be a beneficial one.

Keywords: cashless society, cost-benefit

Suggested Citation

Garcia-Swartz, Daniel D. and Hahn, Robert W. and Layne-Farrar, Anne, The Move Toward a Cashless Society: A Closer Look at Payment Instrument Economics (October 2004). AEI-Brookings Joint Center Working Paper No. 04-20, Available at SSRN: https://ssrn.com/abstract=641441 or http://dx.doi.org/10.2139/ssrn.641441

Daniel D. Garcia-Swartz (Contact Author)

Charles River Associates - Chicago Office ( email )

1 S.Wacker Drive # 3400
Chicago, IL 60606
United States

Robert W. Hahn

Technology Policy Institute ( email )

1401 Eye St. NW
Suite 505
Washington, DC 20005
United States

University of Oxford, Smith School ( email )

Oxford
United Kingdom

Anne Layne-Farrar

Charles River Associates ( email )

1 South Wacker Drive
Suite 3400
Chicago, IL 60606
United States
312-377-9238 (Phone)

HOME PAGE: http://www.crai.com

Northwestern University ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

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