We know that consumers spend more when they use a credit card, but now there’s proof of a direct relationship between the ease of pay and how much you spend. A new study from MasterCard shows that consumers spend on average 30 per cent more if they used “contacless” or wave-and-pay devices, including phone and keychain apps.
The study also found that after the first contactless transaction, users spend an average of 25 per cent more online, 64 per cent more abroad and 20 per cent more in recurring payments.
Researched tracked 15 months-worth of payments. Within a year, no matter the income bracket.
“In our highest spend segment, this lift translates into approximately $600 per month in incremental spend,” said Jonathan Orndorff, Principal at MasterCard Advisors and study lead.
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