The New York Times thinks Pay could bankrupt you


kdarling

macrumors P6
Despite the silly "bankrupt" comment at the beginning, most of the rest is valid.

Just as the article says, one of the reasons why credit card companies like contactless payments, is that they do disconnect most people from the feeling of spending real money. And that encourages more spending.

IIRC, they found that people tend to spend about 20% more on casual purchases with contactless methods (card or phone). That's a lot.
 

Rogifan

macrumors Core
Original poster
Nov 14, 2011
20,661
22,370
Despite the silly "bankrupt" comment at the beginning, most of the rest is valid.

Just as the article says, one of the reasons why credit card companies like contactless payments, is that they do disconnect most people from the feeling of spending real money. And that encourages more spending.

IIRC, they found that people tend to spend about 20% more on casual purchases with contactless methods (card or phone). That's a lot.
But what does this have to do with Apple? Contactless payments existed before Pay. Why does the headline say Pay and not "contactless payments"? Yes I know this is a rhetorical question. ;) If anything disconnects people from the feeling of spending real money it would be one click buying on amazon.com.
 

kdarling

macrumors P6
But what does this have to do with Apple? Contactless payments existed before Pay. Why does the headline say Pay and not "contactless payments"? Yes I know this is a rhetorical question. ;)
Clicks! :)

--

Also, it comes with the territory.

E.g. How many times have we heard, "NFC payments will take off now that Apple's on board."

Apple gets credit for all sorts of things they were not first at, but made popular. That means that they also will often get dinged for the side effects of things they were not first at, but made popular.

So it goes. Sometimes just have to take the bad with the good.
 

Jessica Lares

macrumors G3
Oct 31, 2009
9,200
722
Near Dallas, Texas, USA
They have it all wrong. In-App Purchasing is bankrupting people, but it has nothing to do with Apple, and everything to do with the people letting it happen in the first place - The people spending the money to begin with.

With as many finance apps that are on the App Store, people shouldn't have this problem. And if you're not going to use them for your advantage, then that's just your own fault and you deserve to be penniless.

It doesn't take a lot of effort to organize your spending, especially if you keep up with it on a daily basis.
 

roadbloc

macrumors G3
Aug 24, 2009
8,779
211
UK
I kinda see the theory, but cards are only 4 digits less convenient. So no, I highly doubt ApplePay will bankrupt people unless they're really lacking in willpower.
 

12vElectronics

macrumors 68040
Jul 19, 2013
3,926
1,214
California
People do spend more when the form of payment is easier. People tend to spend more when using card than cash because with cash you can literally feel you losing money. How many of us buy extra stuff from Amazon because it's literally 1 click. I know I'm guilty of that.