Pandemic payment patterns.

COVID-19 has temporarily changed the relative costs and benefits of different payment methods: cash has become more costly in terms of health risks, ease of use and likelihood of acceptance, whereas debit card usage has become less costly. As a result, consumers have shifted away from cash. Based on unique daily payment diary survey data collected between January 2018 and December 2021 amongst a representative panel of Dutch consumers, we study the shift in payment behaviour and payment preferences during two lockdown periods in the Netherlands in 2020 and 2021. Since the start of the first lockdown the likelihood of debit card usage at the expense of cash has increased by 12 percentage points compared to its trend level. About 60 percent of this shift on top of the autonomous trend persisted several months after the end of the first lockdown and part of it has persisted several months after the end of the second lockdown. The results indicate that the pandemic accelerated the increased usage of debit card at the POS, especially during the first pandemic year. Also, the pandemic has resulted in a shift in payment preferences towards more contactless payments. Both effects are largest for elderly people.

Has the COVID-19 pandemic affected public trust? Evidence for the US and the Netherlands.

Using two large-scale surveys among households, we examine the drivers of public trust in banks, insurance companies, BigTechs, and other people in the United States and the Netherlands, and analyse whether the COVID-19 pandemic has affected public trust. Our results suggest that the COVID-19 pandemic did not have much effect on trust in financial institutions in the US and the Netherlands. However, trust in BigTechs and trust in other people declined in both countries, especially in the US. Our regression results show that the relationship between respondents' characteristics and (changes in) trust differs across the US and the Netherlands. However, for both countries we find evidence that individuals with poor health have lower levels of trust than healthy people, and that trust among poor-health respondents dropped more during the pandemic. Furthermore, trust in other people is positively related to trust in banks, insurance companies, and BigTechs.

Determinants of Trust in Banks' Payment Services During COVID: An Exploration Using Daily Data.

Trust in banks is key, especially in turbulent times. Using unique daily data for a representative panel of Dutch consumers, we examine to what extent the COVID-crisis has affected trust in banks' payment services. We have the following main findings. First, COVID-19 measures have affected trust in banks' payment services. The first lockdown increased narrow-scope trust (trust in consumers' own bank payment services) and broad-scope trust (trust in banks' payment services in general). The second lockdown decreased both notions of trust. The crisis measures impacted the trust of the elderly the strongest. Second, personal characteristics are significantly related to trust in banks' payment services. For example, we find that both types of trust are increasing with digital literacy and the ease of getting by with income. Third, narrow-scope trust is higher than broad-scope trust. The gap between trust in the own bank and trust in banks in general is highest for customers of small banks.