Do sociodemographic factors impact in the use of cash in retail transactions?

Abstract

This paper presents the result of a study that assessed the use of cash in retail transactions in the city of São Paulo and the influence of individuals´ sociodemographic condition and transaction value on the likelihood of paying with banknotes. Respondents were selected by quota sampling process based on their sociodemographic profiles. The analyses were carried out using Pearson´s chi-squared test, as well as estimates from probit models. The results indicated that 56% of the respondents´ last purchases were settled in cash, and that both the transaction value and the buyer´s sociodemographic condition influence the likelihood of using banknotes.