MasterCard Advisors study reveals contactless spend 30% up on average

Contactless payments drive ‘top-of-the-wallet’ behaviour

The results of MasterCard Advisors’ first PayPass Adoption Study reveal that PayPass accounts spent almost 30% more than the average in the first twelve months of contactless transactions (view press release). There was also a correlation between contactless adoption and preference for a particular card, signifying that contactless payments may help drive ‘top-of-the-wallet’ behaviour. The study divided the accounts surveyed into low, medium and high spend segments based on monthly spend prior to adoption. The 30% lift was consistent across all three segments.

In our highest spend segment, this lift translates into approximately USD600 per month in incremental spend,” said Jonathan Orndoff, principal at MasterCard Advisors and study lead. “Increases like this can have a significant impact on the issuer business case for contactless.”

Comprising the 30% lift for general contactless payments, recurring payments saw lifts of 11.8-28.5% depending on segment, e-commerce saw lifts of 8.8 – 33.3% and, most notably, cross border spend saw lifts of between 53.1- 79.1%.

The PayPass Adoption study is a quantitative analysis of US account transaction behaviour over the first 12 month period of contactless payments, beginning July 2009.

Related reading

A hand holding a smartphone with $ icons on the screen, which is visually connected to a network of little people around it

Leave a comment