The impact of contactless payment on consumer spending

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Hui, Chun Kit
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BA (Hons) Accounting and Finance
Dublin Business School
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This paper estimate the effect of contactless payment do to consumer in terms of chances of overspending rather than paying by cash. The devices that are investigated are debit and credit cards, to which the feature is embedded. Both primary and secondary research were conducted in order to obtain a greater understanding of consumer’s feelings towards this new way of payment. This research is primarily focusing on two main objectives. These are – the technologies being used instore, and the economic influences affecting consumer decisions to shop. The primary research was conducted in the form of a questionnaires consisting of consumers from different stores around Dublin. The secondary research was conducted using online material, published journals and books in the DBS library. A common theme was discovered whist conducting this research more and more people are using this form of payment method when they are buying their lunch or just going daily grocery shopping. The outcomes of the primary and secondary research supported the hypothesis. The focus groups provided a more personal insight into the participant’s experiences and their reasons for choosing one method over another. The research also confirmed that more retailers are using this new techniques to provide a seamless shopping experience with ease of use, convenience, efficiency and price being the priority in gaining competitive advantage. Evolution of Technology has changed the way on consumer interact with brands and how it can influence purchasing decisions both online and offline (Deloitte, 2014). The mass market introduction of contactless technology is an important event for the payments industry. Contactless payments are already providing benefits to consumers and retailers alike, in terms of higher levels of control and convenience for consumers and higher throughput for retailers. And these benefits are just the tip of the iceberg. The purpose of this study is to investigate the impact of contactless payment on consumer spending.