Ron Shevlin, senior analyst with Boston-based Aite Group, tells PaymentsSource he isn’t sure the study reveals anything other than the improved economy has spiked card transactions.
“Did the rising tide float all boats, and did everyone just spend more?" Shevlin asks.
Orndorff counters that because researchers studied the pre- and post-PayPass spending behavior of the consumer segments, they were able to more easily make adjustments to reflect any spending changes that correlated with changes in the economy.
However, Shevlin admits there is another side to the argument, one that says a cardholder obtaining a PayPass is making a decision that he wants that card to be top-of-wallet.
“Consumers are driven by convenience, and they are loath to change what they do until they try out something new and discover it really is more convenient,” Shevlin contends.
An increase in spending with a contactless card also may reflect that the places where contactless cards are accepted, such as gas stations, carry products that became more expensive during the course of the research, he suggests.
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