 The Impact of Contactless Payment on SpendingTobias Trütsch International Journal of Economic Sciences, 2014, vol. 2014, issue 4, 70-98 Abstract: This paper estimates the effect of contactless payment on the spending ratio in terms of transactions for different transaction types at the point-of-sale. The specific devices that are investigated are debit and credit cards, to which the feature is embedded. Data is drawn from a national representative survey on consumer payment behavior in the US in 2010. Using propensity score matching to control for selection, the estimation shows that the contactless feature yields to a significant increase in the spending ratio at the point-of-sale for both payment methods. The average treatment effect on the treated for credit and debit cards is roughly 8 and 10 percent, respectively. These findings indicate that the private industry can highly benefit from the innovation with respect to new revenue streams. This paper contributes to the existing literature in payment economics by analyzing one of the most recent payment products. Keywords: contactless payment; payment innovation; spending habits; credit and debit cards; near- field communication (NFC); propensity score matching (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:prg:jnljes:v:2014:y:2014:i:4:id:23:p:70-98 Ordering information: This journal article can be ordered from Access Statistics for this article International Journal of Economic Sciences is currently edited by Klara Cermakova More articles in International Journal of Economic Sciences from Prague University of Economics and Business Contact information at EDIRC. |
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