Angelika holds a PhD in Mathematics and a MA in Economics. In her work, she uses empirical microeconomics to understand why and how consumers and firms choose payment methods. This year, Angelika is working on a project that will provide insights in the merchant acquiring industry in Canada. Merchant acquirers have a central role in card payment system as they connect card accepting businesses to the payment networks, authorize and process card transactions and may also provide point-of-sale equipment to merchants. The goal of this project is to better understand the structure of the acquiring market and how it relates to payment efficiency.
Recent data show that the use of credit cards in Canada has been increasing, while the use of cash has been declining. At the same time, only two-thirds of small or medium-sized businesses accept credit cards.
This study provides insight into the costs of cash, debit card and credit card payments made at the point of sale in Canada in 2014. For each payment method, it examines the total resource costs, which capture the overall use of resources by society as a whole.