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Contactless card users spend more, MasterCard says
4 May 2012

Contactless smart card users are spending more after adopting the technology, a new study in the US by MasterCard claims.

The credit card provider studied the spending of consumers after they had been issued with a contactless card and found that on average their spending increased by 30 per cent within 12 months of using the card for the first time.

More than 15 months of payment behaviour was analysed in the study, and the trend was witnessed across the three income brackets that the survey researched.

This translates to an approximate increase of $600 per month in additional spending, the researchers said.

Mark Barnett, group executive of consulting services for MasterCard Advisors, commented: "The research shows that even after cardholders use contactless only once, there is a clear halo effect."

The findings come from the inaugural PayPass Adoption Study and MasterCard believes that they help make the case for increased business investment in contactless technology.