Pay Now Or Pay Later: A Cross-Cultural Perspective on Online Payments


Patrick Deufel
Jan Kemper
Malte Brettel


Consumers have the choice between different payment methods when shopping. Previous research has shown that the payment choice has a strong influence on customer behavior. However, little is known about international differences regarding payment method selection. We fill this gap by comparing adoption of online payment methods across countries and demographics. Our conceptual framework develops on Hofstede's cultural dimensions to explain these payment differences. The analysis is based on 140,000 actual online purchases from an international fashion online store across 14 European countries. Results show that culture explains the differences well and has a much higher impact on consumer choice than demographics. International marketing managers at online retailers can use our findings to decide in which countries to introduce payment methods in demand.

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August, 2019

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