Payment habits in the EU : an econometric model and a case study

Abstract

Payment instruments are vital for the settlement of transactions which are essential in a functional economy. This dissertation, entitled ‘Payment Habits in the EU: An Econometric Model and A Case Study’, aims to explore the behaviour of Maltese residents with respect to their choices of payment instruments when purchasing goods or services and to compare the payment habits across EU countries. This study aims to understand the reasons behind Maltese residents’ preferences in payment instruments for daily use. The rationale behind this study is to see if Maltese are changing their payment habits from cash to electronic means of payment through a survey. Moreover, through estimating regression we will see the difference across EU countries and how much they rely on traditional electronic payments such as credit transfers, direct debit, card payments and cheques.