Abstract
Financial knowledge is the main element of financial literacy, which is important for the sustainable development of individuals and society. Sustainability is a complex concept that spans many fields, including financial knowledge for all ages. Financial knowledge requires significant scientific research showing its impact on individuals and the economy, including non-cash payments. Consumer payment knowledge and its association with consumer financial behavior have long been a matter of widespread interest by researchers, but no in-depth, empirically based scientific research has been completed for Poland. The objective of this study was to examine factors associated with cashless payment behavior with an emphasis on the role of consumer financial knowledge. A total of 1100 interviews were carried out with Polish nationals aged 15 and above. The collected data were analyzed with the use of statistical methods, including analysis of variances (ANOVA), in order to examine consumers’ financial knowledge by basic economic and non-economic factors. Additionally, a data-mining method known as Random Forests was implemented for finding the variable importance in correlations between consumer financial knowledge and preferred methods of payment. The results revealed the diversity of factors influencing consumer behavior. Among the consumers’ personal traits, financial knowledge was one of the most important determinants of their payment choices. The results have implications for the design of payment processes. The results can be used by central banks to determine the directions of financial inclusion, as well as for stakeholders in the payments market.
Highlights
Financial knowledge is a key element of financial literacy, which undoubtedly has an impact on the quality of life and is a key to sustainable development highlighted in the 2030Agenda by the United Nations in 2015 [1,2,3,4]
Our study examined the relationship between objective specialist financial knowledge (OSFK) and payment behavior
The results show that financial knowledge measured both objectively and subjectively are associated with consumer financial behavior, which is consistent with previous research [15,44]
Summary
Financial knowledge is a key element of financial literacy, which undoubtedly has an impact on the quality of life and is a key to sustainable development highlighted in the 2030Agenda by the United Nations in 2015 [1,2,3,4]. Financial knowledge is a key element of financial literacy, which undoubtedly has an impact on the quality of life and is a key to sustainable development highlighted in the 2030. Development Goals, several of which are relevant to cashless payments. Development Goals (SDGs) are a collection of interlinked global goals designed to be a “blueprint to achieve a better and more sustainable future for all”. Inequality, (11) Sustainable Cities and Communities, (12) Responsible Consumption and Production, (13) Climate Action, (14) Life Below Water, (15) Life On Land, (16) Peace, Justice and Strong Institutions, and (17) Partnerships for the Goals. The importance of financial knowledge is in line with goal 3 concerning well-being and goal 4 concerning the importance of quality education. Goal 10 on inequality re-education is relevant
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