Consumers Spending Goes Way Up With Contactless Payment

Studies show that when consumers do not have to pay cash for small items, they buy more. Enter the new contactless payments  that are being released through many nationwide retail outlets. They show significant increase in purchases by their holders. You simply take the RFID chip card or cell phone near a reader and the transaction is completed immediately.

According to AMonline.com, during a MasterCard test program of "contactless" payments in its PayPass program, the company "discovered a 28% increase in weekly transaction volume among its PayPass account holders compared to the previous year when the technology was nonexistent." Want more? "American Express claims that contactless payments can be authorized and executed up to 53% faster on average than comparable credit card transactions and 63% faster than when cash is tendered. Additionally, merchants reported a 12% increase, month over month, in transaction volume after implementing a contactless payment option." [via Motley Fool]