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Adoption of Mobile Payment Shifts Consumer Spending Patterns, Habits

posted by mrpg on Sunday December 02 2018, @11:52AM   Printer-friendly
from the don't-care-I'm-poor dept.

upstart writes:

Submitted via IRC for SoyCow1984

Adoption of mobile payment shifts consumer spending patterns, habits

Paying for a cup of coffee with a smartphone instead of a credit card is gaining prominence among consumers – and is disrupting their spending patterns and consumption habits, according to new research co-written by a University of Illinois expert who studies operations management.

[...] Using a unique data set from one of the largest banks in China – which contained the transaction data from personal computer, offline and mobile payment channels – Xu and co-authors found that, on average, the total transaction amount increased by 2.4 percent after the adoption of the mobile payment channel, and that the total transaction frequency increased by more than 23 percent.

[...] “Switching to the mobile channel leads to more shopping overall, and it particularly affects more hedonistic shopping such as food, entertainment and travel,” Xu said. “But it doesn’t affect purchases like education or health care. So it’s changing consumer behavior.”

The greatest impact came on less costly items that are purchased frequently, such as beverages and movie tickets.

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  • (Score: 2) by RandomFactor on Sunday December 02 2018, @03:54PM (2 children)

    by RandomFactor (3682) Subscriber Badge on Sunday December 02 2018, @03:54PM (#768897) Journal

    Or in my case, just drink the free stuff they have at work in the break room :-p
    .
    Admittedly the Starbucks downstairs tastes significantly better, but $0 cost 'OK' vs. 5$ cost 'Tasty' is a heck of a value proposition for something that is functionally indistinguishable and takes an extra 30 minutes to stand in line and wait for.
    .
    I'll go to Starbucks as a kind of social event, but on my own basically never.

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  • (Score: 2) by black6host on Sunday December 02 2018, @04:54PM (1 child)

    by black6host (3827) on Sunday December 02 2018, @04:54PM (#768910) Journal

    The Starbucks coffee tastes better? You poor soul! Must be some pretty damn bad coffee in the break room :)

    • (Score: 2) by RandomFactor on Sunday December 02 2018, @05:01PM

      by RandomFactor (3682) Subscriber Badge on Sunday December 02 2018, @05:01PM (#768913) Journal

      It's not bad, but it is a bit harsher. I'm no coffee connoisseur.
      Also there's a mental model where if you don't pay for it, it doesn't taste as good, and I'm not sure how much that plays into it.

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