How we are bribed to use credit cards

Just out Price Incentives and Consumer Payment Behaviour John Simon, Kylie Smith, Tim West - Reserve Bank "In this paper we estimate the effect of particular price incentives on consumer payment patterns using transaction-level data. We find that participation in a loyalty program and access to an interest-free period, both of which lower the price of credit card use, tend to increase credit card use at the expense of alternative payment methods, such as debit cards and cash. Specif