They Still Want to Have Cash - A Case of Psychological Ownership

Abstract

Academics and financial experts advocate for the abolition of cash money. By this, individuals cannot withdraw money from the bank when interest rates become negative. Further arguments claim that cash money is solely used for tax evasion and criminal acts. However, not all agree. Some argue that such claims should not be made without a deeper understanding of consumers’ preferences. While some research exists regarding consumers’ payment habits, a study regarding the attitude to a cashless world or a world with cash is missing. To fill this gap, this study reports findings from a study of 24 countries on four continents. Cash payment habits were assessed, and respondents revealed their opinions about their preference for cash. These preferences could be ascribed to cultural differences, gender, and age. The overall framework was dominated by the notion of psychological ownership, which lets individuals prefer tangible cash.