Working Paper（24-008E）Do Cashless Payments Stimulate Spending? Evidence from QR Code Payment Campaigns and Bank Transaction Data in Japan

This study examines whether cashless spending stimulates spending through subdued salience. We use bank transaction data and leverage events related to Quick Response (QR) code campaign as an instrumental variable. Our estimation offers supporting evidence for subdued salience, demonstrating that an increase in QR code payments prompted by campaigns leads to an approximately samesized increase in other spending. However, this e ect is transitory. Nevertheless, the e ect of QR code campaigns on QR usage exerts a lasting impact over time, increasing the fraction of QR code users by a minimum of 1%.

JEL Classi cation Number: D12, E42, E21, G51
Keywords: cashless; cash; household nance; heterogeneity