Here’s why you might spend more with mobile payment services like Apple Pay
Consumer savings expert offers tips on how to save and spend responsibly | On Your Side
03:46
Do you use Apple Pay or another mobile payment service to make purchases? If so, you could be spending more than if you relied on a physical credit card or cash.
Services like Google Pay and China-based Alipay that let you pay by hovering your phone over a terminal and clicking a button can lead to consumers spending more money than they otherwise would, largely driven by how easy the systems make it to buy things, new research shows.
The ease and convenience of tapping to pay leads consumers to spend more compared to when they paid by credit card, according to the study, which was led by Yuqian Zu, assistant professor at the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill.
consumers racking up more debt.
“I personally think this could be a factor that contributes because people are spending more,” she said.
Zu isn’t suggesting we turn our off our phones or delete payment apps to avoid overspending. But she thinks it’s important that consumers be aware of the potential behavioral changes that mobile payment services may facilitate, including a tendency to spend with less restraint.
“The findings are very important for the general population to know about — that with convenience, it’s possible you may spend more,” she said.
That includes impulsive spending at checkout registers and online, where consumers can securely store their credit card information.
“Because of the convenience, you don’t even notice you bought things,” she said. Just keeping this in mind can help consumers “better manage their financial resources and reduce impulsive expenditures.”
Megan Cerullo
Source: cbsnews.com