Google might be changing the way we spend money now. One of its latest inventions is Google Wallet - a virtual wallet on your Google-powered Android phone. Simply add your accounts to Google Wallet, and you can tap your phone on card readers using technology like PayPass.
That's not to say Google is the only one thinking about transforming our payment system. Apple is said to release similar technology in its updates to iPhone and iPad. How does that affect you - the business owner - who's wondering if this a worthy technology to invest in?
I submit to you the recent arguments made in a recent Journal of Consumer Research about our spending behavior related to credit cards. In an article entitled, "Do Payment Mechanisms Change the Way Consumers Perceive Products?" by Promothesh Chatterjee and Randall L. Rose, the research points out that people who use plastic are unconsciously willing to spend more than those who pay with cash, a phenomenon known as the "credit card premium." That's because there's an emotional pain associated with handing over hard currency that curbs spending, as opposed to mindless purchasing when forking over plastic.
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