n Acta Commercii - Utilisation of payment instruments at a retail chain in Gauteng : original research

Volume 15, Issue 1
  • ISSN : 2413-1903
  • E-ISSN: 1684-1999



The purpose of this research was to determine the influence of race and income on the preferred payment instrument at pay points in a retail store in Pretoria Gauteng.

The method of payment, as well as the way these payment methods have been utilised, has evolved throughout history. Cash has stayed at the top of the payment instrument deck as a payment choice for the past 10 decades. With the expansion of technology payment instruments evolved to facilitate exchange between merchant and consumer. The preferred method of payment at a retail store in Gauteng, indicating whether consumers prefer cash payments or the use of cards was investigated. Further to this the difference in payment method between the different races and income groups was identified.
A quantitative survey research method was used. The statistical analysis entailed correlations using the Cramer's V to test the dependency between two variables and the degree of dependency of variables, after which the Chi-Square test was also applied.
The indication of consumer preference of payment method will have implications on which possibilities are available at the point of sale. Cash is no longer the only possible payment instrument; cards, debit and credit, are as easily used by consumers. Both banks and merchants will find this information important, since they need to make provision for different payment options. The results further distinguished consumer behaviour amongst different race groups and income groups.
The research confirmed the previous findings in other countries that consumers have preconceived ideas on which payment instrument they would utilise at point of sale (POS.)

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