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The Impact of Accepting Credit Cards and Mobile Payments versus Cash Only

IMPACT OF ACCEPTING CREDIT & MOBILE PAYMENT VS. CASH ONLY Personal finance experts have long claimed that paying electronically instead of with cash leads to spending more money. The ease, convenience, and intangibility, they say, all make us more likely to overspend. In the last few years, studies have confirmed this belief and highlighted the benefits for merchants who take advantage. BELOW, WE EXPLORE THE BOTTOM-LINE IMPACT OF ACCEPTING CREDIT CARDS AND MOBILE PAYMENTS INSTEAD OF CASH ONLY. SPENDING RISES WITH CREDIT CARD ACCEPTANCE THE MOBILE PAYMENT OPPORTUNITY According to the Journal of Experimental Psychology, McDonald's saw its average order amount rise from $4.50 to $7.00 after taking credit card payments. Mobile payments offer the same frictionless and convenient payment experience as credit cards. 40% Order size increases of up to 40% are possible after merchants accept credit cards for the first time. 20% of 2012 holiday sales were made through mobile devices. Shoppers spend 12-18% more when using credit cards instead of cash. Mobile payments are projected to rise from $47.2 billion in 2011 to $998.5 billion in 2016. 2011 2016 A PRACTICAL EXAMPLE OF BEFORE AND AFTER CASH-ONLY PAYMENTS Assuming you own a small convenience store in your home town and project a modest, average order size increase from accepting credit and mobile: BEFORE AFTER NEW AOV AFTER 200 ORDERS PER DAY CREDIT/MOBILE: PAY $18.00 $15.00 CURRENT AOV NEW AVERAGE DAILY REVENUE: $3,000 $3,600 AVERAGE DAILY N REVENUEJ THAT'S THE DIFFERENCE OF $90,000 VERSUS $108,000 IN MONTHLY SALES! ACCEPTING CREDIT AND MOBILE PAYMENTS IS NO LONGERA LUXURY. IT IS A CONVENIENCE YOUR CUSTOMERS DEMAND AND A SURE-FIRE SALES BOOSTER FOR YOUR BUSINESS! SOURCES: JOURNAL OF EXPERIMENTAL PSYCHOLOGY | THE MONEY ANSWER BOOK |YANKEE GROUP | IE MARKET RESEARCH Merchant Warehouse

The Impact of Accepting Credit Cards and Mobile Payments versus Cash Only

shared by merchantwarehouse on Apr 08
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Personal finance experts have long claimed that paying electronically leads us to spend more money. The ease, convenience, and intangibility, they say, all make us more likely to overspend, which for ...

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