Briefing

When Paying Bills, Low-Income Consumers Incur Higher Costs

Abstract: Low-income consumers are more likely to pay bills using costlier payment methods, even when they have access to cheaper bank account-based methods. Digital exclusion, cash flow constraints, and lack of trust in or familiarity with electronic payment methods may explain low-income consumers’ reliance on costlier bill payment methods.

Keywords: Bill payments; Payments; Consumers;

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Payments System Research Briefing

Publication Date: 2021-11-23

Issue: November 23, 2021

Pages: 7