New Study: Mobile Payments May Be Causing Expenditures to Spike

A recent study by Chinese researchers has revealed that mobile payments may lead to increased expenditure among mobile money users. Based on data sourced from a bank in China, research found that the convenience offered by mobile payments could cause people to spend more than they typically would if they were paying in person with physical cash.

With a growing number of consumers opting to shop on online marketplaces, mobile payment services such as Google Pay and Apple Pay have seen a meteoric rise in popularity. By allowing customers to store their banking information such as credit card numbers safely on their computers, such services have made online payments as simple as clicking a button.

But while this convenience makes purchasing goods and services online quick and easy, research now indicates that such “frictionless payments” could potentially cause people to spend more than they had originally planned. The research paper noted that customers spent an extra 9.4% on their credit cards in both in-person and online transactions after they began using mobile money services.

In an interview with NPR, lead author and University of North Carolina Kenan-Flagler Business School assistant professor Yuqian Xu said she believes mobile payment services could have a notable role in increasing credit card debt. Based on polls showing that around 50% of Americans use mobile payments and the recent paper’s findings, the assistant professor estimates that frictionless payments have influenced at least 4.5% of the country’s total credit card use.

Based on Xu’s estimates, convenient mobile payment services may be responsible for around $50 billion of the $1.3 trillion in total consumer credit card debt in the country. As online shopping and frictionless payments become more prevalent in the United States and other major nations, the share of credit card debt attributable to mobile payments will most likely increase.

Even though Xu based her research on data collected from a Chinese bank, she is confident that American and Chinese consumers use mobile money payments similarly primarily due to the convenience the payments offer. The mobile option also offers customers a faster means of payment because mobile payments take 30 seconds on average compared to 40 seconds to purchase something with a credit card.

Mobile payments also eliminate the need for carrying physical credit cards or even wallets, which can reduce a consumer’s risk of losing their money to petty theft or credit card fraud. Rather than avoid mobile payment services completely, Xu encourages people to manage their finances better to avoid impulsive spending.

The benefits that come with using the mobile payment channels offered by companies such as FingerMotion Inc. (NASDAQ: FNGR) have made it so easy for consumers to pay for goods and services without going through the hassles of carrying physical cash or credit cards.

NOTE TO INVESTORS: The latest news and updates relating to FingerMotion Inc. (NASDAQ: FNGR) are available in the company’s newsroom at

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