RDP 2009-04: Price Incentives and Consumer Payment Behaviour Appendix B: Results Tables – Use of Payment Methods

John Simon, Kylie Smith and Tim West

June 2009

Table B1: Credit Card Use
By credit card holders
Variable Coefficient Base case Marginal effect (ppts)
No loyalty program −0.65*** Loyalty program −22.9
Revolver −0.43*** Transactor −15.9
Male 0.27** Female 10.9
Scheme debit card −0.37*** No scheme debit card −14.1
Cheque book 0.00 No cheque book 0.0
Age (18–29 years) 0.27 Age (45–59 years) 10.7
Age (30–44 years) 0.10 Age (45–59 years) 3.9
Age (60+ years) −0.01 Age (45–59 years) −0.6
Transaction ($0–$10) −1.64*** Transaction ($51–$60) −41.0
Transaction ($11–$20) −0.70*** Transaction ($51–$60) −24.6
Transaction ($21–$30) −0.23*** Transaction ($51–$60) −9.1
Transaction ($31–$40) −0.05 Transaction ($51–$60) −2.1
Transaction ($41–$50) −0.08 Transaction ($51–$60) −3.1
Transaction ($61–$70) −0.08 Transaction ($51–$60) −3.2
Transaction ($71–$80) 0.11 Transaction ($51–$60) 4.4
Transaction ($81–$90) 0.09 Transaction ($51–$60) 3.5
Transaction ($91–$100) −0.07 Transaction ($51–$60) −2.7
Transaction ($101–$110) 0.36** Transaction ($51–$60) 14.2
Transaction ($111–$120) 0.45*** Transaction ($51–$60) 17.6
Transaction ($121–$130) 0.16 Transaction ($51–$60) 6.3
Transaction ($131–$140) −0.12 Transaction ($51–$60) −4.7
Transaction ($141–$150) −0.03 Transaction ($51–$60) −1.1
Transaction ($151–$160) 0.43** Transaction ($51–$60) 17.1
Transaction ($161–$170) −0.07 Transaction ($51–$60) −2.7
Transaction ($171–$180) 0.00 Transaction ($51–$60) 0.0
Transaction ($181–$190) 0.63* Transaction ($51–$60) 24.4
Transaction ($191–$200) 0.12 Transaction ($51–$60) 4.7
Transaction ($201+) 0.03 Transaction ($51–$60) 1.0
Holiday/travel 0.64*** Retailer 24.5
Health/medical 0.20** Retailer 7.8
Insurance 0.17 Retailer 6.8
Petrol 0.09 Retailer 3.7
Liquor store 0.07 Retailer 2.8
Supermarket −0.08 Retailer −3.3
Transport −0.25** Retailer −9.6
Housing/utilities −0.21 Retailer −8.3
Restaurant −0.44*** Retailer −16.5
Other −0.46*** Retailer −17.0
Small food store −0.51*** Retailer −18.8
Professional services −0.52*** Retailer −19.1
Sporting/entertainment −0.66*** Retailer −23.4
Pub/bar −0.75*** Retailer −25.7
Take-away −0.93*** Retailer −30.4
Education/childcare −0.96*** Retailer −31.0
Income (<$20,000) 0.24 $40,000–$59,999 9.6
Income ($20,000–$39,999) −0.18 $40,000–$59,999 −7.1
Income ($60,000–$79,999) 0.06 $40,000–$59,999 2.2
Income ($80,000–$99,999) 0.06 $40,000–$59,999 2.3
Income ($100,000–$119,999) 0.12 $40,000–$59,999 4.7
Income ($120,000+ ) 0.19 $40,000–$59,999 7.7
QLD 0.01 NSW/ACT 0.4
VIC 0.04 NSW/ACT 1.4
TAS 0.27 NSW/ACT 10.8
SA/NT 0.50** NSW/ACT 19.4
WA 0.39** NSW/ACT 15.6
Constant −0.13    
Number of observations = 8,575
Pseudo R2 = 0.28		      
Notes: ***, ** and * denote the 1, 5 and 10 per cent levels of significance respectively. Marginal effects are evaluated at the base case.
Table B2: Debit Card Use
By credit card holders
Variable Coefficient Base case Marginal effect (ppts)
No loyalty program 0.14 Loyalty program 4.0
Revolver 0.58*** Transactor 18.9
Male −0.09 Female −2.2
Cheque book 0.17* No cheque book 4.8
Age (18–29 years) 0.18 Age (45–59 years) 5.2
Age (30–44 years) 0.05 Age (45–59 years) 1.4
Age (60+ years) −0.26* Age (45–59 years) −6.1
Transaction ($0–$10) −1.27*** Transaction ($51–$60) −16.7
Transaction ($11–$20) −0.51*** Transaction ($51–$60) −10.5
Transaction ($21–$30) −0.28*** Transaction ($51–$60) −6.5
Transaction ($31–$40) −0.25** Transaction ($51–$60) −5.8
Transaction ($41–$50) −0.00 Transaction ($51–$60) −0.1
Transaction ($61–$70) 0.10 Transaction ($51–$60) 2.8
Transaction ($71–$80) −0.04 Transaction ($51–$60) −1.1
Transaction ($81–$90) 0.11 Transaction ($51–$60) 3.0
Transaction ($91–$100) 0.00 Transaction ($51–$60) 0.1
Transaction ($101–$110) −0.13 Transaction ($51–$60) −3.3
Transaction ($111–$120) −0.10 Transaction ($51–$60) −2.5
Transaction ($121–$130) −0.15 Transaction ($51–$60) −3.6
Transaction ($131–$140) 0.39* Transaction ($51–$60) 12.0
Transaction ($141–$150) 0.19 Transaction ($51–$60) 5.5
Transaction ($151–$160) −0.29 Transaction ($51–$60) −6.6
Transaction ($161–$170) 0.13 Transaction ($51–$60) 3.5
Transaction ($171–$180) 0.15 Transaction ($51–$60) 4.3
Transaction ($181–$190) 0.06 Transaction ($51–$60) 1.8
Transaction ($191–$200) 0.19 Transaction ($51–$60) 5.4
Transaction ($201+) −0.20 Transaction ($51–$60) −4.7
Holiday/travel −0.29 Retailer −6.7
Health/medical −0.13 Retailer −3.2
Insurance −0.67** Retailer −12.5
Petrol 0.16* Retailer 4.5
Liquor store 0.07 Retailer 1.9
Supermarket 0.26*** Retailer 7.6
Transport −0.44*** Retailer −9.3
Housing/utilities −0.74*** Retailer −13.3
Restaurant −0.62*** Retailer −11.9
Other −0.63*** Retailer −12.1
Small food store −0.28*** Retailer −6.5
Professional services −0.41** Retailer −8.8
Sporting/entertainment −0.78*** Retailer −13.7
Pub/bar −0.98*** Retailer −15.3
Take-away −0.51*** Retailer −10.4
Education/childcare −0.91*** Retailer −14.8
Income (<$20,000) −0.36*** $40,000–$59,999 −7.9
Income ($20,000–$39,999) −0.05 $40,000–$59,999 −1.4
Income ($60,000–$79,999) −0.15 $40,000–$59,999 −3.7
Income ($80,000–$99,999) −0.33 $40,000–$59,999 −7.5
Income ($100,000–$119,999) −0.74** $40,000–$59,999 −13.2
Income ($120,000+) −0.26 $40,000–$59,999 −6.0
QLD 0.27** NSW/ACT 8.0
VIC 0.45*** NSW/ACT 14.0
TAS 0.15 NSW/ACT 4.3
SA/NT −0.12 NSW/ACT −3.1
WA 0.08 NSW/ACT 2.3
Constant −0.91***    
Number of observations = 8,575
Pseudo R2 = 0.22		      
Notes: ***, ** and * denote the 1, 5 and 10 per cent levels of significance respectively. Marginal effects are evaluated at the base case.
Table B3: Cash Use
By credit card holders
Variable Coefficient Base case Marginal effect (ppts)
No loyalty program 0.35*** Loyalty program 13.6
Revolver −0.08 Transactor −2.9
Male −0.11 Female −3.9
Scheme debit card −0.14 No scheme debit card −5.1
Cheque book −0.14 No cheque book −4.8
Age (18–29 years) −0.35** Age (45–59 years) −11.7
Age (30–44 years) −0.15 Age (45–59 years) −5.2
Age (60+ years) 0.23** Age (45–59 years) 8.8
Transaction ($0–$10) 1.99*** Transaction ($51–$60) 60.5
Transaction ($11–$20) 1.03*** Transaction ($51–$60) 39.1
Transaction ($21–$30) 0.52*** Transaction ($51–$60) 20.4
Transaction ($31–$40) 0.32*** Transaction ($51–$60) 12.5
Transaction ($41–$50) 0.13 Transaction ($51–$60) 4.7
Transaction ($61–$70) −0.17 Transaction ($51–$60) −5.9
Transaction ($71–$80) −0.08 Transaction ($51–$60) −3.0
Transaction ($81–$90) −0.32** Transaction ($51–$60) −10.7
Transaction ($91–$100) −0.07 Transaction ($51–$60) −2.6
Transaction ($101–$110) −0.38 Transaction ($51–$60) −12.5
Transaction ($111–$120) −0.41** Transaction ($51–$60) −13.3
Transaction ($121–$130) −0.02 Transaction ($51–$60) −0.8
Transaction ($131–$140) −0.34 Transaction ($51–$60) −11.2
Transaction ($141–$150) 0.06 Transaction ($51–$60) 2.1
Transaction ($151–$160) −0.47* Transaction ($51–$60) −15.1
Transaction ($161–$170) −0.11 Transaction ($51–$60) −3.8
Transaction ($171–$180) −0.22 Transaction ($51–$60) −7.6
Transaction ($181–$190) −0.56 Transaction ($51–$60) −17.4
Transaction ($191–$200) −0.53* Transaction ($51–$60) −16.6
Transaction ($201+) −0.32*** Transaction ($51–$60) −10.7
Holiday/travel −0.35* Retailer −11.7
Health/medical −0.22** Retailer −7.6
Liquor store −0.10 Retailer −3.5
Insurance −0.62* Retailer −18.7
Petrol −0.30*** Retailer −10.2
Supermarket −0.02 Retailer −0.7
Transport 0.42*** Retailer 16.5
Housing/utilities −0.32** Retailer −10.7
Restaurant 0.79*** Retailer 30.6
Other 0.14 Retailer 5.1
Small food store 0.60*** Retailer 23.4
Professional services 0.27 Retailer 10.4
Sporting/entertainment 0.92*** Retailer 35.3
Pub/bar 1.15*** Retailer 42.9
Take-away 0.91*** Retailer 35.2
Education/childcare 0.77*** Retailer 30.0
Income (<$20,000) −0.01 $40,000–$59,999 −0.5
Income ($20,000–$39,999) 0.17 $40,000–$59,999 6.6
Income ($60,000–$79,999) 0.02 $40,000–$59,999 0.7
Income ($80,000–$99,999) 0.18 $40,000–$59,999 6.9
Income ($100,000–$119,999) −0.00 $40,000–$59,999 −0.1
Income ($120,000+) 0.01 $40,000–$59,999 0.3
QLD −0.15 NSW/ACT −5.2
VIC −0.30*** NSW/ACT −10.1
TAS −0.18 NSW/ACT −6.3
SA/NT −0.24 NSW/ACT −8.2
WA −0.32** NSW/ACT −10.7
Constant −0.42**    
Number of observations = 8,575
Pseudo R2 = 0.38		      
Notes: ***, ** and * denote the 1, 5 and 10 per cent levels of significance respectively. Marginal effects are evaluated at the base case.