Payment Method Behavior - Behavioural Approach of payment systems in Switzerland and Turkey

Technological advancements have significantly altered the financial landscape, impacting how we transact and manage finances. This thesis examines the behavioral nuances and preferences in payment method choices, comparing Switzerland and Turkey. Despite their geographical proximity, these countries provide distinct economic contexts, making them ideal for a comparative analysis of traditional cash exchange and mobile payment technologies.

The objective of this research is to examine the behavioral dynamics influencing payment method choices in various situations, such as daily or large expenses. The study aims to evaluate the popularity of different payment methods and the cognitive factors driving these preferences. Additionally, it seeks to understand the impact of these choices on spending habits and financial well-being. 

The methodology involves conducting the same survey in both Switzerland and Turkey to gather sufficient responses for meaningful analysis. This approach efficiently collects significant quantitative data. The survey is designed to explore a wide range of payment preferences to identify overall trends and patterns. While the questions are generally the same for both countries, some are adapted to each country's context, such as income scales.

Switzerland's economic stability, characterized by low inflation and a reliable banking sector, fosters consumer confidence and a preference for secure, convenient payment methods. Swiss consumers, enjoying a high standard of living and substantial disposable income, favor payment solutions that offer security and flexibility. This is reflected in the growing use of credit and debit cards, as well as the rising adoption of mobile payment solutions.

In contrast, Turkey's high inflation environment, marked by rapid price increases across various sectors, significantly impacts consumer behavior. In such contexts, consumers become more price-sensitive, adjusting their spending habits to prioritize essential goods and services. The unpredictability of inflation often leads to reduced discretionary spending, affecting sectors like leisure, non-essential goods, and luxury services.

This study examined the relationship between economic stability, demographic factors, and payment preferences in Switzerland and Turkey. The findings show significant differences, with Turkey displaying greater diversity in payment preferences due to economic instability, while Switzerland exhibits uniform payment behavior reflecting its stability.

Age and income significantly influence payment method preferences in both countries. Younger individuals prefer digital payment methods, with almost universal adoption among young Swiss, while this trend is less pronounced in Turkey due to varying technological infrastructure and consumer confidence. Higher income levels correlate with a preference for premium payment services in Turkey, whereas no significant correlation was found in Switzerland. Gender had little effect, except for a higher preference for digital payment methods among Turkish men.

Overall, digital payment adoption is higher among younger individuals in both countries, indicating a generational shift towards tech-savvy financial solutions. Switzerland shows widespread adoption across all age groups, while Turkey lags due to the aforementioned factors.