Cross-Culture Consumer Behavior Analytics on Payment Methods Preferences

Youyi Lei

Co-Presenters: Individual Presentation

College: Hennings College of Science Mathematics and Technology

Major: BA.MATH/DATA/ANA

Faculty Research Mentor: Nejatbakhsh, Yousef  Aliasgari, Malihe

Abstract:

Consumer behavior is related to intersectional factors in terms of the payment methods people prefer to use. This study utilized databases from the Global Findex Database 2025 of the World Bank and tested how Hofstede’s cultural dimensions and financial inclusion metrics jointly predict payment instrument usage across 150+ countries. By applying analysis of variance (ANOVA), we figured out that the payment method preferences differ across countries and regions. With the Bayesian Additive Regression Trees (BART) models, this paper extended cross-cultural consumer behavior theory by quantifying how individualism, power distance, and financial inclusion jointly shape the global mix of cash, credit or debit cards, online, and mobile payments. Power Distance contributed negatively more to online payments and credit or debit cards usage, while Individualism contributed positively. We also applied the Autoregressive Integrated Moving Average (ARIMA) to forecast the payment method people tend to use in the following three years. Digital payments, including mobile payments and online payments, will expand, while the usage of credit or debit cards remains relatively stable with moderate fluctuations. We further provided insights into structural economic differences, actionable marketing strategies, and cultural theories, helping governments and international organizations design policies related to financial services.