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More transactions but a lower average transaction value: How mobile payment apps influence consumer purchases through time-savings

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  • Lu, Steven Qiang
  • Pauwels, Koen

Abstract

Mobile payment has become increasingly popular with consumers. In this study, we examine a key benefit of mobile payment: saving consumers time by bypassing the payment queue. In a field experiment with a Chinese retail gasoline chain, we find that the introduction of mobile payment decreases the average amount per transaction but increases overall sales by boosting the number of transactions. These effects are more pronounced when the expected waiting time to pay is longer and when competitors are closer. In addition, the impact is greater for premium than regular products and leads to an increase in cross-channel sales. Consistent with the time-saving rationale, these findings provide insights for managers wanting to increase sales by implementing a mobile payment option.

Suggested Citation

  • Lu, Steven Qiang & Pauwels, Koen, 2024. "More transactions but a lower average transaction value: How mobile payment apps influence consumer purchases through time-savings," International Journal of Research in Marketing, Elsevier, vol. 41(4), pages 761-776.
    • Handle: RePEc:eee:ijrema:v:41:y:2024:i:4:p:761-776
    DOI: 10.1016/j.ijresmar.2024.08.004
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