How people pay each other: Data, theory, and calibrations

Using a representative sample of the U.S. adult population, we analyze which payment methods consumers use to pay other (p2p) and how these choices depend on transaction demographic characteristics. We construct random matching model with diverse preferences over for p2p payments. The is calibrated share payments made cash, checks, electronic technologies from 2015 2019. find about two-thirds have first preference cash. One-third rank checks first. Approximately 94 percent second.