Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Network Economics

Editor-in-Chief: Grzybowski, Lukasz

Ed. by Briglauer, Wolfgang / Goetz, Georg / Pereira, Pedro

IMPACT FACTOR 2018: 0.080
5-year IMPACT FACTOR: 0.803

CiteScore 2018: 0.39

SCImago Journal Rank (SJR) 2018: 0.941
Source Normalized Impact per Paper (SNIP) 2018: 0.182

See all formats and pricing
More options …
Volume 15, Issue 3


Payment Instruments, Financial Privacy and Online Purchases

Yann Balgobin
  • Telecom ParisTech, Economics and Social Sciences, 46 rue Barrault, 75634 Paris Cedex 13, France
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ David Bounie
  • Corresponding author
  • Telecom ParisTech, Economics and Social Sciences, 46 rue Barrault, 75634 Paris Cedex 13, France
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Martin Quinn
  • Telecom ParisTech, Economics and Social Sciences, 46 rue Barrault, 75634 Paris Cedex 13, France
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Patrick Waelbroeck
  • Telecom ParisTech, Economics and Social Sciences, 46 rue Barrault, 75634 Paris Cedex 13, France
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
Published Online: 2017-09-11 | DOI: https://doi.org/10.1515/rne-2016-0046


The protection of financial personal data has become a major concern for Internet users in the digital economy. This paper investigates whether the consumers’ use of non-bank payment instruments that preserve financial privacy from banks and relatives may increase their online purchases. We analyze the purchasing decisions and the use of bank and non-bank payment instruments of a representative sample of French Internet consumers in 2015. Using two econometric methods, namely a two-step regression and a Bayesian Markov Chain Monte Carlo model to account for a potential endogeneity problem, we find evidence that the use of a non-bank payment instrument positively influences consumers’ online purchases.

Keywords: electronic commerce; endogenous binary; financial privacy; payments; variable model

JEL Classification: G21; G23; L81; L86


  • Acquisti, Alessandro, Curtis R. Taylor and Liad Wagman (2016) “The Economics of Privacy,” Journal of Economic Literature, 54:442–492.CrossrefWeb of ScienceGoogle Scholar

  • Akhter, Syed H. (2012) “Who Spends More Online? The Influence of Time, Usage Variety, and Privacy concern on Online Spending,” Journal of Retailing and Consumer Services, 19:109–115.CrossrefGoogle Scholar

  • Athey, Susan, Christian Catalini and Catherine Tucker (2017) “The Digital Privacy Paradox: Small Money, Small Costs, Small Talk,”.Google Scholar

  • Bagnall, John, David Bounie, Kim Huynh, Anneke Kosse, Scott Schuh, Tobias Schmidt and Helmut Stix (2016) “Consumer Cash Usage and Management: A Cross-Country Comparison with Diary Survey Data,” International Journal of Central Banking.Google Scholar

  • Bolt, Wilko and Maarten van Oordt (2016) “On the Value of Virtual Currencies,” Technical Report, Bank of Canada Staff Working Paper, 2016-42.Google Scholar

  • Bouckaert, Jan and Hans Degryse (2006) “Entry and Strategic Information Display in Credit Markets,” Economic Journal, 116:702–720.CrossrefGoogle Scholar

  • Bounie, David, Abel François and Patrick Waelbroeck (2016) “Debit Card and Demand for Cash,” Journal of Banking and Finance, 73:55–66.CrossrefGoogle Scholar

  • Castells, Manuel (2001) The Internet Galaxy: Reflections on the Internet, Business and Society. UK: Oxford University Press.Google Scholar

  • Ching, Andrew T. and Fumiko Hayashi (2010) “Payment Card Rewards Programs and Consumer Payment Choice,” Journal of Banking and Finance, 34(8):1773–1787. New Contributions to Retail Payments: Conference at Norges Bank (Central Bank of Norway) 14 and 15 November 2008.CrossrefGoogle Scholar

  • Conitzer, Vincent, Curtis R. Taylor and Liad Wagman (2012) “Hide and Seek: Costly Consumer Privacy in a Market with Repeat Purchases,” Marketing Science, 31(2):277–292.Web of ScienceCrossrefGoogle Scholar

  • Cranor, Lorrie F., Kelly Idouchi, Pedro G. Leon, Manya Sleeper and Blase Ur (2013) “Are They Actually Any Different? Comparing Thousands of Financial Institutions Privacy Practices,” The Twelfth Workshop on the Economics of Information Security (WEIS 2013).Google Scholar

  • Drehmann, Mathias, Charles Goodhart and Malte Krueger (2002) “The Challenges Facing Currency Usage: Will the Traditional Transaction Medium be Able to Resist Competition from New Technologies?” Economic Policy, 17:193–228.CrossrefGoogle Scholar

  • FEVAD (2015) “Rapport du médiateur du e-commerce de la Fevad 2015/2016.” Available at: http://www.mediateurfevad.fr/wp-content/uploads/2017/02/Rapport-du-Me%CC%81diateur_2016_FINAL.pdf.

  • Greenberg, E. (2014) Introduction to Bayesian Econometrics. UK: Cambridge University Press.Google Scholar

  • Hertzberg, Andrew, Jose M. Liberti and Daniel Paravisini (2011) “Public Information and Coordination: Evidence from a Credit Registry Expansion,” Journal of Finance, 66:379–412.Web of ScienceCrossrefGoogle Scholar

  • Janger, Edward J. and Paul M. Schwartz (2002) “The Gramm-Leach-Bliley Act, Information Privacy, and the Limits of Default Rules,” Minnesota Law Review, 86:1219.Google Scholar

  • Jentzsch, Nicola (2007) Financial Privacy – An International Comparison of Credit Reporting Systems. Germany: Springer-Verlag Berlin Heidelberg.Google Scholar

  • Kahn, Charles M. and Jose M. Linares-Zegarra (2016) “Identity Theft and Consumer Payment Choice: Does Security Really Matter?” Journal of Financial Services Research, 50:121–159.CrossrefWeb of ScienceGoogle Scholar

  • Karapetyan, Artashes and Bogdan Stasescu (2014) “Information Sharing and Information Acquisition in Credit Markets,” Review of Finance, 18(4):1583–1615.Web of ScienceCrossrefGoogle Scholar

  • Kim, Jin-Huyk and Liad Wagman (2015) “Screening Incentives and Privacy Protection in Financial Markets: A Theoretical and Empirical Analysis,” RAND Journal of Economics, 46:1–22.CrossrefWeb of ScienceGoogle Scholar

  • Lacker, Jeffrey M. (2002) “The Economics of Financial Privacy: To Opt Out or Opt In?” Federal Reserve Bank of Richmond Economic Quaterly, 88(3):1–16.Google Scholar

  • Markose, Sheri M. and Ying J. Loke (2003) “Network Effects on Cash Card Substitution in Transactions and Low Interest Rate Regimes,” The Economic Journal, 113:456–476.CrossrefGoogle Scholar

  • Mester, Loretta J., Leonard I. Nakamura and Micheline Renault (2007) “Transactions Accounts and Loan Monitoring,” The Review of Financial Studies, 20(3):529–556.CrossrefGoogle Scholar

  • Padilla, Jorge A. and Marco Pagano (1997) “Endogenous Communication among Lenders and Entrepreneurial Incentives,” Review of Financial Studies, 10:205–236.CrossrefGoogle Scholar

  • Padilla, Jorge A. and Marco Pagano (2000) “Sharing Default Information as a Borrower Discipline Device,” European Economic Review, 44:1951–1980.CrossrefGoogle Scholar

  • Pagano, Marco and Tullio Japelli (1993) “Information Sharing in Credit Markets,” The Journal of Finance, 48(5):1693–1718.CrossrefGoogle Scholar

  • Schuh, Scott and Oz Shy (2016) “U.S. Consumers’ Adoption and Use of Bitcoin and other Virtual Currencies,” Paper presented at the DeNederlandsche bank, Conference entitled “Retail payments: mapping out the road ahead”.Google Scholar

  • Sheng, Xinguang and Lorrie F. Cranor (2006) “An Evaluation of the Effect of US Financial Privacy Legislation Through the Analysis of Privacy Policies,” I/S: A Journal of Law and Policy for the Information Society, 2(3):934–979.Google Scholar

  • Shy, Oz and Rune Stenbacka (2015) “Customer Privacy and Competition,”.Web of ScienceGoogle Scholar

  • Swire, Peter P. (2002) “The Surprising Virtues of the New Financial Privacy Law,” Minnesota Law Review, 86:1263.Google Scholar

  • Tsai, Janice Y., Serge Egelman, Lorrie Cranor and Alessandro Acquisti (2011) “The Effect of Online Privacy Information on Purchasing Behavior: An Experimental Study,” Information Systems Research, 22:254–268.CrossrefWeb of ScienceGoogle Scholar

  • Villas-Boas, J. Miguel (2004) “Price Cycles in Markets with Customer Recognition,” The RAND Journal of Economics, 35(3):486–501.CrossrefGoogle Scholar

  • von Kalckreuth, Ulf, Tobias Schmidt and Helmut Stix (2014) “Choosing and Using Payment Instruments: Evidence from German Microdata,” Empirical Economics, 46:1019–1055.CrossrefWeb of ScienceGoogle Scholar

  • Waelbroeck, Patrick (2005) “Computational Issues in the Sequential Probit Model,” Computational Economics, 26(2):141–161.CrossrefGoogle Scholar

  • Wooldridge, Jeffrey M. (2006) Introductory Econometrics: A Modern Approach. USA: Michigan State University.Google Scholar

About the article

Published Online: 2017-09-11

Published in Print: 2016-09-26

Citation Information: Review of Network Economics, Volume 15, Issue 3, Pages 147–168, ISSN (Online) 1446-9022, ISSN (Print) 2194-5993, DOI: https://doi.org/10.1515/rne-2016-0046.

Export Citation

©2016 Walter de Gruyter GmbH, Berlin/Boston.Get Permission

Comments (0)

Please log in or register to comment.
Log in