The role of financial innovations in consumer behavior in the Russian retail payments market

This study estimates the effect of financial innovations on the frequency of cashless payments by cardholders at the Russian retail payments market. Using the representative nation-wide survey of 1500 individuals this study finds significant robust evidence that various types of financial innovations promote activity of consumers at the retail payments market. This paper contributes to the existing literature in payment economics by empirically analyzing the effects of emerging and existing retail financial innovations on the consumers’ behavior at Russian retail payments market. The results of the paper provide important implications for financial services providers and regulators by outlining the role of financial innovations in promoting cardholders activity.