Effects of Institutional Environment and Technology Development on Payment Choice

The purpose of this paper is to analyze the combination of institutional factors and tech­nology advances as determinants for the choice of payment instruments. The theoretical set up suggests that countries that enter into a new institutional environment adopt the attitudes of the accepting group towards the payment choices as a consequence of institutional pressure and tech­nology development. We apply the results of the model to the European Union enlargement process of 2004. Our findings confirm the relevance of both institutional environment and technology de­velopment in retail payment choice decisions particular to Central and Eastern European Countries. First published online 2 November 2015