Perception of Acceptance Barriers and Cashless Payments Value: Evidence from Russian Merchants

This study is aimed to examine the effect caused by perception of higher card acceptance barriers on cashless revenue share of Russian merchants. Moreover, the actual barriers’ effect of cashless payments acceptance on non-cash share of revenue is estimated, which allows to evaluate the rationality of barriers’ perception by retailers. The empirical testing of a series of hypotheses regarding the barriers’ perception effect is conducted based on two representative samples of Russian nation-wide merchants survey data collected in 2014 and 2017. The analysis considers a set of regional controls, as well as merchant-specific characteristics (e.g. type, size or assortment). The statistically significant evidence in favor of negative impact caused by perception of higher infrastructural barriers on cashless revenue share is found in both samples, while only a partial significance of higher perceived institutional and human capital barriers may be observed. No significant evidence for merchants’ rationality with respect to acceptance barrier has been found based on the comparison of perceived and actual barriers effects. The obtained results can potentially be utilized by the regulatory authorities to interact with merchants and the market in a way which eventually promotes further integration of cashless economy.