Trust, ties, and transactions: The impact of social capital on card payments

Abstract

This study examines the impact of social capital on card payment behavior across 137 countries in 2021, with a particular focus on the mediating role of trust. Drawing on the Legatum Institute’s Social Capital Index and trust measures, we employ path analysis to assess both direct and indirect effects on debit and credit card usage. The findings indicate that higher social capital significantly increases the likelihood of adopting card payments, and trust partially mediates this relationship, accounting for 46.98% of the total effect on combined card usage, 70.74% for credit cards, and 33.63% for debit cards. This study offers novel empirical evidence on the link between social capital and financial behavior worldwide. It provides practical implications for policymakers and financial institutions seeking to promote secure, inclusive, and trust-based cashless payment ecosystems.